Case Study 1: When Proof Fails, Fairness Prevails

Mr Mahlangu* approached our office alleging an unauthorized transaction of R5,000 on his clothing retail account. He requested a refund claiming the transaction was fraudulent.

Upon our investigation, it was found that although Mr Mahlangu never formally reported the transaction as fraud, a call recording revealed confusion regarding the process. Mr. Mahlangu did not have an email address or smartphone, limiting his ability to engage in the investigation.

His account showed consistent and honest payment behaviour often paying more than the minimum required. Considering his vulnerability and good faith conduct, we recommended that the credit provider refund the disputed amount as a gesture of goodwill and the credit provider agreed and refunded R5,000, plus R1,290 in interest.

Case Study 2: No Paper Trail, No Payback

Mr Ngobeni* claimed to have settled his credit account but noticed it was still active and accruing charges. The furniture finance credit provider could only provide internal system notes stating that the account was still open.

We requested formal account statements to support their position. When they were unable to provide any such documentation, we advised that in the absence of credible evidence, the account should be deemed settled. The credit provider accepted our recommendation and the account was closed. A balance of R26,982.72 was written off.

Case Study 3: Old Debt, New Justice

Mr Daniels* contacted our office regarding an old debt sold to a third-party debt collector. He had not acknowledged or paid anything towards the debt in over three years and believed it should be removed from his credit profile due to prescription.

In law, a debt prescribes if 3 years has passed from the date of initial default and if one of the following did not interrupt the running of prescription:

• A payment within a 3-year period from the default,
• An express or tacit acknowledgement of the debt; and
• Enforcement action such as being served with a summons, or a judgment being granted.

We confirmed that no payments, acknowledgments, or legal actions had occurred since the  recommended the debt be written off as prescribed and the credit provider agreed, writing off R63,500 and updating Mr. Dlamini’s credit profile.

Case Study 4: Ghost Payments, Real

Debt Write-Offs” Ms Du Toit* had entered into a cellphone contract with a telecoms provider. The debt was transferred to one collection agency, then sold to another. She insisted she had made payments to the first agency, but these were not reflected in her statements.

We requested statements from the telecom’s provider, both collection agencies, and pre-sale documentation. None of the parties could produce records showing payment history or accurate balances.

In the absence of documentary proof, we recommended that the account be closed and the full outstanding balance of R24,449.53 be written off and the Participant agreed.

Case Study 5: Signed or Sidelined: No Agreement, No VAS, No Debt

Mr Ramalivhana* raised a complaint about overcharged interest and the addition of Value-Added Services on his building materials credit account. He had not received a signed copy of the agreement and denied agreeing to the VAS products.

The building material credit provider was unable to provide a complete, signed agreement or account reconciliation.

Due to lack of supporting documents and evidence of consumer consent, we recommended the account be closed. The Participant agreed and the full outstanding balance of R11,708.50 was written off and the account marked as paidup.

*Not real names