Banking News South Africa

National Consumer Commission to crack down on suppliers

The National Consumer Commission intends to crack down on high ATM charges, medical aids that don't pay for procedures, mobile phone companies that impose exorbitant cellphone charges and a range of other suppliers according to Times Live.

It says the commission is taking on a number of major businesses in different sectors for violating consumers' rights and failing to comply with the Consumer Protection Act.

Commission representatives told parliament that they would hammer banks on the ATM charges and the high charges levied for unpaid debit orders as trade and industry deputy director-general Zodwa Ntuli suggested that "most of the cases will end up in court."

The commission can impose penalties against transgressing companies of R1-million or 10% of the company's annual turnover. It has issued compliance notices to BMW, Vodacom, Cell C, MTN, 8ta and Telkom.

A spot check of 50 shops in the Pretoria area found that they were selling on lay-bye but charging more than the one percent they are entitled to charge if the deal is cancelled. Summonses were issued against them.

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