The fraudster had provided the complainant with a proof of payment showing that an EFT had been made to the customer’s account, after which the complainant released the goods to the fraudster.
The Bank had in fact informed the complainant by means of an SMS notification that a cheque was deposited into his account and as such, submitted that the complainant should not have released the goods as a cheque deposit is subject to a 7 (seven) day clearing period. The Bank was therefore not willing to refund the customer for the loss suffered.
The facts showed that the Payment Association of South Africa (PASA) regulations pertaining to the maximum value for writing a cheque had been reduced from R 500 000.00 to R 50 000.00, effective from 1 May 2020. The Bank argued that the cheque deposit, although exceeding R 50 000.00, was accepted, as the cheque first had to pass through the Bank’s clearing system, whereafter it was rejected on the following day.
Our Office however submitted to the Bank that a cheque which on face value exceeds R 50 000.00 should not be accepted by the Bank, as it would merely be rejected by the clearing system and returned. Had the Bank not accepted the cheque, the customer would not have been exposed to any liability in respect of the loss suffered.
The Bank offered to refund 50% of the loss suffered by the customer, as the customer also had a reciprocal duty to conduct his own due diligence at the time of contracting and prior to him releasing the goods to the fraudster.
The customer accepted the offer from the Bank in full and final settlement of any claim against the Bank.
In this instance, the customer had instituted legal action against the Bank while the matter was before our Office. The customer however withdrew the legal action after further consultation with our Office in order for our Office to first attempt to resolve the dispute and with the view of limiting legal costs for both him and the Bank.
PRINCIPLE Banking customers have a duty to conduct necessary due diligence when selling/buying goods given the prevalence of fraud. Banks must ensure that their staff members are properly trained/updated in respect of applicable laws and regulations.
