HOW TO USE PASA TO RESOLVE A DEBIT ORDER DISPUTE

In the last blog we provided you with information on stopping and reversing debit orders. Now we introduce you to the Payment Association of South Africa (PASA) and give you tips on how to use them to resolve a complaint relating to a debit order dispute.

PASA is a payment system management body recognised by the South African Reserve Bank in terms of the National Payment System Act and they regulate debit orders in South Africa. Processing of all payments to and from a consumer’s bank account is done by way of the National Payment System. Only PASA members are allowed to deduct funds from consumers’ bank accounts by way of debit order.

PASA has stringent criteria which apply to debit order facilitators and they can impose fines on members for any contravention of their rules.

Members of PASA are expected to:

1. Observe and be bound by PASA Policies
2. Preserve the integrity of the National Payment System and refrain from acts which are detrimental to PASA or the National Payment System
3. Act as responsible custodians of their payment systems in the National Payment System
4. Act ethically when interacting with PASA or consumers.

Some of the sanctions which PASA may impose on delinquent members are:

1. Publishing the details of non-compliance or contravention by a member in its annual review
2. Withdrawing a member’s status of good standing as directed by the Council after consultation with the Reserve Bank
3. Imposing a fine of up to R1 million
4. Terminating their membership.

If you’re interested, PASA’s full Constitution may be accessed here:

PASA’s Integrated Report which provides quite a lot of valuable information on the steps which PASA and its members are taking to ensure compliance and to secure various payment method transactions can be found at:

Our advice to consumers:

1. Scrutinise your bank statements every month to ensure that there are no unauthorized debit orders being deducted from your account
2. When you realise that an unauthorized debit order has deducted from your account you must immediately notify your bank and take the necessary steps mentioned in last week’s blog so as to stop and, if necessary, reverse the debit order
3. If you cancel a contract in terms of which debit orders are being deducted from your account, you must also instruct the service / credit provider involved that you revoke the mandate to deduct any funds from your nominated account in respect of that contract
4. After having advised the service / credit provider, instruct your bank to stop any future debit orders from them
5. Never accept a Debicheck mandate if you do not know where the mandate originated or if the terms of the mandate differ from what was agreed
6. Ensure that you have sufficient funds in your bank account so as to ensure that all valid debit orders are able to be deducted on the agreed dates to maintain a positive credit record and so that your insurance and medical aid cover are not at risk
7. Submit a complaint to the Ombudsman for Banking Services should your bank fail to properly implement any instructions
8. Submit a complaint to PASA should a service / credit provider continue to deduct funds from your account after you have validly terminated the mandate so that PASA may investigate the matter with the view of terminating that service / credit provider’s membership to PASA and imposing the maximum fine. Once a member has been terminated by PASA they are no longer able to participate in the facilitation of debit order payments and will not be able to continue with their unscrupulous conduct.

Please also feel free to contact our offices for further advice and assistance should you not be able to resolve a particular complaint on your own.

We hope that you have enjoyed this series and that it has been informative. We would love to hear from you if you have any particular topics on which you would future blogs.