Copies of the Code are available from the member banks and
from The Banking Council.
In the text of the Code, "you" means the customer and "we"
and "our" refers to the customer's bank. The Code will only apply to small
businesses to the extent that it is relevant to corporate entities.
The Code will become effective from 3 April 2000, except
where contracts need to be revised, or explanations developed to comply with the
"plain language" requirements. Those contracts and explanations will be
introduced as soon as possible (and the Banking Adjudicator will have a
discretion as to whether reasonable steps have been taken to introduce them "as
soon as possible") but in any event by not later than 1 October 2000.
DATE OF THIS CODE: 1 OCTOBER 1999.
Acknowledgement:
This Code is based, to an extent, on the Banking Code 3rd
Edition, March 1997 of the British Bankers' Association. Their support is
gratefully appreciated.
1. FUNDAMENTAL PRINCIPLES
We, the members of the Banking Council undertake that we
will:
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act fairly and reasonably in all our dealings with you;
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ensure that all services and products comply with this Code,
even if they have their own terms and conditions;
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give you information on our services and products in plain
language, and offer help if there is any aspect which you do not understand;
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help you to choose a service or product to fit your needs;
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help you to understand the basic financial implications of:
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help you to understand how your accounts work;
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have safe, secure and reliable banking and payment systems
services;
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ensure that the procedures our staff follow reflect the
commitments set out in this Code;
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correct errors and handle complaints speedily;
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take care to understand your financial difficulties and
mortgage arrears when you approach us;
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ensure that all services and products comply with relevant
laws and regulations;
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act with uncompromising integrity and fairness so as to
promote complete trust and confidence in ourselves, individually and as an
industry;
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ensure that our credit criteria, products and services are
based and applied solely on commercial principles and criteria and do not
discriminate against you on the basis of race, religion, age, pregnancy, marital
status, sex, gender, sexual orientation, ethnic or social origin, disability,
colour, conscience, belief, culture, language and birth save to the extent that
a distinction is required or justified by any law or to the extent that that
factor has commercial implications or in respect of special product or service
offerings designed for all members of a particular target market group;
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only charge you interest on monies actually owing to us and
debited to your account.
2. INFORMATION
2.1 Information Available
When you become a customer and at any reasonable time you
ask, we will give you:
2.1.1 Key features:
2.1.2 Your account:
Information on how your account works, including:
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stopping a cheque or other types of payment;
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when funds can be withdrawn after a deposit has been paid
into your account and when funds begin to earn interest;
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unpaid cheques;
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stale cheques;
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when your account details may be passed to credit reference
agencies.
2.1.3 Charges:
2.1.4 Interest rates:
2.2 ATM charges
We will notify you of changes to ATM charges with ATM
messages and/or advertisements in the media. Details of these charges can be
obtained from your bank.
2.3 Overdrafts and fixed term products
We will inform you of any additional charges and interest you
may have to pay when:
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your account becomes overdrawn without prior agreement;
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you exceed your overdraft limit;
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your loan falls into arrears;
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you decide to settle a loan early
2.4 Mortgage loans
When you apply for a mortgage loan, and at any reasonable
time you ask, we will explain to you the operation and repayment of your
mortgage, including all the charges and costs, the benefits of payment
acceleration and additional interest costs payable should you fall into arrears,
and the steps required in law should we have to act to repossess it if you are
unable to meet your repayment obligations.
2.5 Other charges
We will inform you of the charges (and the applicable amount
where possible) for any other service or product before or when it is provided
to you or at any reasonable time you ask while you are a customer.
2.6 Terms and Conditions
2.6.1 Plain language:
All written terms and conditions will be fair in substance
and will set out your applicable rights and responsibilities clearly and in
plain language, with legal and technical language used only where necessary.
Where legal and technical language occurs we will provide an explanation.
2.6.2 Closure:
We will not close your account without giving you reasonable
prior notice at the last address provided by you to us. However, we reserve the
right to protect our interests should we have to act against you for defaulting
on your account or in the event of fraud or suspected fraud on your account.
2.7 Keeping you informed of changes
2.7.1 Terms & Conditions:
Occasionally terms and conditions may have to be changed. We
will give you reasonable notice of these changes before they become effective
such that you will have time to decide if you want to continue with the product
or service, taking the changes into account, or if you want to cancel that
product or service. If there have been significant changes to terms or
conditions over any one year, we will give or send you a copy of the new terms
and conditions or a summary of the changes at the last address provided by you
to us.
2.7.2 Charges:
If there is a change in the charges for basic banking
services, we will give you reasonable prior notice by either:
2.7.3 Interest rates:
The interest rates, which apply to your accounts, may change
from time to time because of the volatile international and local financial
markets. We will endeavour to give you as much notice as possible of changes in
interest rates. In the case of mortgage loans we will, at the absolute minimum,
give notice in the public media of any increase (but not decrease) in interest
rate. We will moreover, give notice of change in any interest rates the next
time we communicate with you in writing through a bank statement or other
communication, and in terms of the requirements of prevailing legislation.
2.8 Marketing of services
We may bring to your attention details of our other services
and products, which may be of benefit to you. However, when you become a
customer, we will give you the opportunity in writing to say that you do not
wish to receive this information.
2.8.1 Consent to group marketing:
In order to enhance our existing relationships with you we
may give certain information about you to other subsidiaries within our group
for marketing purposes. We may also tell you about another company's services or
products and, if you respond positively, you may be contacted directly by that
company.
2.8.2 Withholding Consent:
In both the above cases, if you are a new customer we will
first obtain your consent to do this. In the case of existing clients, we will
inform you that you may withhold your consent to our doing this, and how to
exercise that choice. If you do not withhold your consent, we will presume that
you have agreed to our continuing the practice. You will not be pressurised for
your consent in return for our services and products
2.8.3 Responsible credit:
We will market and approve loans responsibly in an attempt to
ensure that you are not extended financially beyond your means. However you have
an obligation to inform us and keep us informed of all your loans, other
financial commitments, income and changes to these and continuously to act
responsibly in all your financial affairs.
2.8.4 Advertising:
We will ensure that all advertising and promotional material
is clear, fair, reasonable and not misleading. We will comply with the
appropriate advertising authority guidelines.
2.9 Mortgage loans
2.9.1 Buying a home with a mortgage loan may be your most
important financial commitment. We will assist you to understand the wider
responsibilities and rights that you will have as a homeowner, and assist you
with a detailed affordability assessment should you require it. The impact of
variable versus fixed interest rates will be clearly explained to you so that
you can make an informed decision. It will also be explained to you that you
could lose your house should you not keep up your loan repayments. We will
explain to you the requirements imposed by law in the event of the bank having
to repossess your home due to your non-adherence to the conditions of the
contract.
2.9.2 As financiers we do not have the skills or the
resources to monitor or control the quality of the building you are building or
buying. We will clearly inform you that our appraisal is solely to enable us to
assess the value of the security to us. It is not intended to be an evaluation
of the present or future market value of the property, nor does it have to be
the same as the purchase price. We have not necessarily inspected the property
and do not accept any responsibility or liability for the structural or other
condition of the security, even if the loan is a development or building loan.
Should you require it, we will provide you with:
2.9.3 Issues of home quality are the responsibility of the
seller (or builder or developer) and yourself as buyer. Homes younger than 5
years may also have a National Home Builders Registration Council Limited
Warranty. You must satisfy yourself to the best of your ability that you are
buying a good product and if necessary obtain assurance as to the structural
quality of the property, compliance with local authority requirements and
replacement costs of the buildings and improvements from the proper experts.
2.9.4 When your mortgage bond has been paid up we will inform
you how annual insurance premiums, other charges and administrative matters can
be dealt with in future.
2.10 Savings & investment accounts
2.10.1 We will take care to give you clear and appropriate
information on the different types of savings and investment accounts available
from us to help you make an informed choice on the products to fit your needs.
We will help you understand how your savings and investment accounts work,
including any additional charges or loss of interest for withdrawal or early
cancellation. Should you wish to consider the tax implications of your choice of
investment, you should seek independent advice from an appropriate consultant
qualified to provide this to you.
2.10.2 You should ensure that you manage your savings and
investments properly in order to meet your personal financial needs and
circumstances. You should make yourself aware of the opportunities for savings
and investments in the financial market place. Remember only to deal with
reputable product suppliers.
2.10.3 As regards investments which automatically rollover at
the end of their term, we expect you will inform us should you not want this to
happen.
2.11 Closure of Bank Branches and ATM Centres:
We will give reasonable prior notice of our intention to
close any of our bank branches or ATM centres.
3. ACCOUNT OPERATIONS
3.1 Running your account
3.1.1 Statements:
3.1.1.1 To help you manage your account and check entries on
it, we will give you regular account statements. These may be provided monthly,
quarterly, or at a minimum annually, unless this is not appropriate for the type
of account. You may ask for account statements to be provided more frequently
than normally available on your type of account.
3.1.1.2 Statement details may also be available on request or
through electronic banking terminals. You may be charged for statements
requested over and above those normally provided. You must ensure that you
manage your use of statements to meet your requirements taking into account the
costs of providing them.
3.1.1.3 If your statement or savings account book has an
entry, which seems to be wrong, you should tell us within 30 days or as soon as
possible so that we can resolve matters.
3.1.2 Cheques:
3.1.2.1 We may keep original cheques paid from your account
or copies of these, where the originals have been returned to you, for the
period prescribed by law. If we do, we may charge a fee for supplying you with
additional copies.
3.1.2.2 If, within a reasonable period after the entry has
been made, there is a dispute with us about a cheque paid from your account, we
will give you the cheque or a copy (where the cheque has already been returned
to you) as proof of the instruction to pay.
3.1.2.3 When we need to inform you that we have returned one
of your cheques or other items as unpaid, we will do this within a reasonable
period of time and in the most cost-effective way, assuring you of our efforts
to maintain confidentiality and privacy.
3.1.2.4 When we become aware that a cheque deposited by you
is returned unpaid, we will inform you within a reasonable period of time and in
the most cost-effective way.
3.1.2.5 When you deposit a cheque you should remember that we
usually act as a collection agent on your behalf. We may, at our discretion,
credit the value of this deposit to your account and determine if that credit
may be accessed before we get value ourselves. Should we in turn not receive
value for any reason, we will reverse the credit and any associated interest.
3.1.3 Lost or damaged payment instruments: All banks (locally
and internationally) work on the principle that if you hand a cheque to them for
collection, they act as your agent to collect the funds from the cheque issuer's
bank. As such, and given the complexities of a cheque clearing system, they can
not accept responsibility for the loss or theft of the cheque in the system.
Consequently, if a cheque or other payment instrument which you have deposited
for collection is lost or damaged, you will have to approach the issuer of the
cheque or instrument to stop payment (if it has not already been paid out) and
issue a replacement cheque or instrument. If you provide us with the relevant
details of the drawer of the 'lost' cheque, and you mandate us to act on your
behalf, we will take reasonable steps to replace the cheque. We may require an
indemnity from you in case the original cheque has already been paid to you.
3.1.4 Cards and pins:
3.1.4.1 We will issue you a card, or replace one which has
already been issued. A replacement fee may be charged.
3.1.4.2 Your PIN (Personal Identification Number) is strictly
confidential. Where a bank supplies it, it will be advised only to you and will
be issued separately from your card. You should never disclose your PIN to
anyone, including any employee of the bank.
3.1.5 PIN self-selection:
We will tell you if you can select your own PIN and, if so,
you will be encouraged to do so carefully. This should make it easier for you to
remember your PIN.
3.2 Lending
3.2.1 Financial assessment:
All lending will be subject to our assessment of your ability
to afford and willingness to repay. This assessment may include:
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taking into account your income and expenses, including the
dependability of your income;
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how you have handled your financial affairs in the past;
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information obtained from credit reference agencies and, with
your consent, from other appropriate parties, for example employers, other
lenders and landlords;
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information supplied by you, including verification of your
identity and the purpose of the borrowing;
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credit assessment techniques, for example, credit scoring;
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your age;
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any security or collateral provided;
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taking into account your statement of assets and liabilities.
3.2.2 Notification that credit has been refused:
If an application for credit is declined we will inform you
of the reasons for this which could include whether the decline is based on:
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the overall credit score;
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credit reference agency information;
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over-indebtedness; or
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a specific policy of the bank.
With automated credit scoring systems these reasons may not
be explicit in which case general reasons only, can be provided.
3.2.3 Suretyships:
If you want us to accept a suretyship or other security from
someone for your loans, we will inform you that the surety is entitled by law to
your confidential financial information.
We will:
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encourage the surety to take independent legal advice to make
sure that they understand their commitment and the potential consequences of
their decision. All the documents they will be asked to sign will contain this
recommendation as a clear and prominent notice;
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advise and caution them that by giving the surety or other
security they may become liable instead of or as well as you;
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advise them whether it is a limited (and the maximum value)
or unlimited suretyship.
3.3 Foreign exchange services
3.3.1 We will give you an explanation of the service, details
of the exchange rate and an explanation of the charges which apply to any
foreign exchange transactions which you are about to make. Where this is not
possible, we will inform you of the basis on which these will be worked out.
3.3.2 If you wish to transfer money abroad, we will inform
you how this is done and will give you, at least, the following information:
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a description of the services and how to use them;
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an explanation of when the money you have sent abroad should
get there and any reason for potential delays;
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any commission or charges which you will have to pay,
including a warning where a foreign bank's charges may also have to be paid by
the recipient.
4. PROTECTION
4.1 Confidentiality
4.1.1 We will treat all your personal information as private
and confidential (even when you are no longer a customer). Nothing about your
accounts nor your name and address will be disclosed to anyone, including other
companies in our group, other than in four exceptional cases permitted by law.
These are:
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where we are legally compelled to do so;
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where it is in the public interest to disclose;
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where our interests require disclosure;
(This will not be used as a reason for disclosing information about you or your
accounts (including your name and address) to anyone else including other
companies in our group for marketing purposes.)
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where disclosure is made at your request or with your written
consent.
4.2 Credit reference agencies
4.2.1 Information about your personal debts owed to us may be
disclosed to credit reference agencies where:
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you have fallen behind with your payments and you have not
made proposals satisfactory to us for repayment of your debt following formal
demand and you have been given at least 28 days' notice of our intention to
disclose; or
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you have given us written consent; or
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you have a cheque referred to drawer, the information is
placed on a cheque verification service.
Where the amount owed or arrears amount is in dispute, the
fact (but not the amount) of this dispute will also be disclosed.
4.2.2 We will not give any other information about you to
credit reference agencies without your prior written consent.
4.3 Data transparency
We will inform you of your rights to access your personal
information held by us.
4.4 Protecting your accounts
4.4.1 Identification:
When you first apply to open an account or obtain a loan, we
will inform you what identification we need to prove identity. This is important
for your security and may be required by law. We will also inform you what
checks we may make with credit reference agencies.
4.4.2 Taking care:
Taking care of your cheque book, savings account book, cards,
electronic purse, PIN's, passwords and selected personal information is
essential to help prevent fraud and protect your accounts. Please ensure that
you:
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do not keep your cheque book and cards together;
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do not allow anyone else to use your card, PIN and/or
password;
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always take reasonable steps to keep your card safe and your
PIN, password and selected personal information secret at all times;
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never tell anybody who offers to help you your PIN or
password, including any bank employee;
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never write down or record your PIN, password or selected
personal information without disguising it; for example, never write down or
record your PIN using the numbers in the correct order;
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take care and be alert to the risk of muggings and card
swapping when using an ATM to do your transactions. It is essential that you
tell us as soon as you can if you suspect or discover that:
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your cheque book, savings account book, cards and/or
electronic purse has been lost or stolen;
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someone else knows your PIN, password or your selected
personal information.
4.4.3 Loss - what to do:
When you report a lost or stolen cheque book, savings account
book, card or electronic purse, please ensure that we give you a code or other
reference to confirm that you have reported it. Once you have advised us that a
cheque book, savings account book, card or electronic purse has been lost or
stolen or that someone else knows your PIN, password or selected personal
information, we will take immediate steps to prevent these from being used to
access your account.
4.4.4 Responsibility for losses:
We will refund you the amount of any transaction together
with any interest and charges:
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where you have not received your card and it is misused by
someone else;
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for all transactions not authorised or effected by you after
you have informed us and we have acknowledged it that someone else knows your
PIN, password or selected personal information;
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if additional money is transferred from your account to your
electronic purse after you have informed us (and we have acknowledged it) of its
loss or theft and that someone else knows your PIN, password or selected
personal information;
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where faults have occurred in the ATMs, or associated systems
used, which were not obvious or subject to a warning message or notice at the
time of use.
We expect you to report all incidents of stolen chequebooks,
savings account books, cards or fraudulent transactions to the police for
investigation.
Electronic purse:
You should treat your electronic purse like cash in a wallet.
You may lose any money left in the electronic purse at the time it is lost or
stolen, in just the same way as if you lost your wallet.
4.4.5 Cards:
We accept that if it is clear that members of the public are
vulnerable to crime if they transact at certain ATMs, we will take reasonable
precautions to minimise crime at those ATMs.
You also have a responsibility to take reasonable precautions
when using an ATM to minimise the possibility of criminal activities. You are
requested to adhere to any notices of caution at ATM's in order to protect
yourself against criminal activities at ATM's. In particular do not let anybody
come near you or distract you while you are transacting at the ATM.
Where a card transaction is disputed, we have the burden of
proving fraud or gross negligence or that you have received your card. In such
cases we would expect you to co-operate with us and with the police in any
investigation.
4.4.6 Fraud and gross negligence:
If you act fraudulently you will be liable for all losses. If
you act with gross negligence which has caused losses you may be liable for
them. This may apply if you fail to follow the safe-guards set out in sections
4.4.2 to 4.4.6.
5. DIFFICULTIES
5.1 Financial difficulties
We will take care to understand your financial difficulties
provided you approach us in good time. Should your account go into default, our
first step will be to try to contact you to discuss the matter and it is
imperative that you inform us at all times of any changes in your address and
contact numbers.
5.2 How we can help
If you find yourself in financial difficulties, you should
let us know and in particular respond to communications we send to you as soon
as possible. The sooner we discuss your problems, the easier it will be for both
of us to find a solution. The more you tell us about your full financial
circumstances, the more we may be able to help. With your co-operation, we will
take reasonable steps to develop a plan with you for dealing with your financial
difficulties, consistent with both our interests and yours.
5.3 Complaints
5.3.1 Internal procedures:
We have internal procedures for handling complaints fairly
and speedily and we will inform you what these are. These may include
establishing a set time for an initial acknowledgement to your complaint. We
will tell you how long it might take us to respond more fully.
If you wish to make a complaint, we will inform you how to do
so and, what to do if you are not happy about the outcome. Staff will help you
with any queries.
5.3.2 Banking Adjudicator:
An independent Banking Banking Adjudicator's Office has been
established. The Banking Adjudicator is available at no cost to you to rule or
recommend on any complaint which you and your bank may not have been able to
resolve. The Banking Adjudicator is entitled to make a ruling based on the law
where the law is reasonably certain or a recommendation based on this Code or
where the law is uncertain. If the bank declines to accept any recommendation
which the Banking Adjudicator makes, then the Banking Banking Adjudicator may,
at the his or her discretion, publish the fact that a recommendation was made
and the bank refused to accept it.
All banks which are members of the Banking Council are
automatically subject to the jurisdiction of the Banking Adjudicator. Your bank
will supply you with the Banking Adjudicator's address, telephone and fax
numbers. The current postal address is :
P O Box 5728
Johannesburg
2000
Telephone number (011) 838 0035
Fax number (011) 838 0043.
5.3.3 Review body:
This Code is monitored and regularly reviewed by the Banking
Council. Complaints and suggestions concerning the terms and general operation
of the Code can be made in writing to the Banking Council.
6. USEFUL DEFINITIONS
These definitions explain the meaning of some of the words
and terms used in the Code. They are not precise, legal or technical
definitions.
6.1 ATM (Automated Teller Machine):
A cash machine or free standing device dispensing cash which
may also provide other information or services to customers who have a card and
a PIN, password or other personal identification.
6.2 Basic banking service:
The opening, maintenance and operation of accounts for money
transmission by means of cheque, other payment instruments or savings accounts.
6.3 Cards:
A general term for any plastic card, which may be used to pay
for goods, and services, and to withdraw cash. For purposes of this Code, it
excludes electronic purses.
6.4 Credit reference agencies:
Organisations which hold information which is of relevance to
lenders. Banks may refer to these agencies to assist with various decisions,
e.g. whether or not to open an account or provide loans or grant credit. Banks
may give information to or seek information from these agencies.
6.5 Credit scoring:
6.6 Electronic purses:
Any card or function of a card which contains real value in
the form of electronic money which someone has paid for in advance, some of
which can be reloaded with further funds and which can be used for a range of
purposes.
6.7 Group:
A group means a holding company as defined in the Companies
Act 61 of 1973 and its wholly owned subsidiaries.
