Code of Banking Practice Contents
5. Dispute Resolutions
6. Review of the Code
7. Useful Definitions
The Code of Banking Practice (“the Code”) is a voluntary code
that sets out the minimum standards for service and conduct you
can expect from your bank with regard to the services and products it offers,
and how we would like to relate to you.
The Code only applies to personal and small business customers.
In the text of the Code, "you" means the customer and "we", "our"
and “us” refer to your bank. There is a section at the end of the
Code which contains definitions of useful banking terms.
These appear in italics in the text of the Code.
The Code will be a guide for you when you transact with your bank
and it will help you better understand your rights and responsibilities
as well as your bank’s responsibilities in serving you.
We are committed to meeting the standards set out in this Code.
Our relationship with you will be guided by four key principles,
namely fairness, transparency, accountability and reliability.
In the Code we refer to issues that may be subject to specific legislation
and regulation which may change from time to time and will take preference over the Code.
We accept the jurisdiction of the Ombudsman for Banking Services to mediate,
to make binding determinations based on this Code and on the law where appropriate,
and to make recommendations in other circumstances including those based on equity.
A determination made by the Ombudsman for Banking Services may be made an order of the court.
If we refuse to abide by a recommendation of the Ombudsman for Banking Services, the Ombudsman may
publish the recommendation and the relevant bank’s refusal to comply.p>
Copies of the Code are available from us and from The
Banking Association South Africa. You can also view the Code
on The Banking Association’s website at
or on your bank’s website. The contact details of the relevant Ombudsman services appear on
The Banking Association's website and in section 10 of the Code.
THIS CODE APPLIES FROM: 1 January 2012
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This Code has been developed to:
2.1 promote good banking practices by setting minimum standards for your bank when dealing with you;p>
2.2 increase transparency so that you can have a better understanding of what you can reasonably expect of the products and services;
2.3 promote a fair and open relationship between you and your bank; and
2.4 foster confidence in the banking system.p>
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Customer entitlements and responsibilities in terms of the Code
Below is a summary of your entitlements and responsibilities in your relationship with your bank. The summary is discussed in greater detail in the body of the Code and the text in the body will always prevail.
3.1. Your entitlements
As a customer or potential customer you can expect the following reasonable conduct from your bank as more fully outlined and detailed in the body of the Code. Your bank will:
3.2. Products, services and account operations
When you become a client and on reasonable request, we
will make available to you:
clear written information explaining the key
features of our services and products in which you
express an interest;
clear and appropriate information on the
different types of products and accounts available from
us to assist you to make an informed choice appropriate
to your needs;
recommended safety measures and tips on our
services and products in which you express an interest.
information on how your account works, including:
when you can
withdraw funds after a deposit has been paid into your
account and when funds begin to earn interest;
methods of issuing a cheque;
cheque or other types of payment;
difference between and the implications of bank
guaranteed cheques and bank cheques, where appropriate;
of unpaid cheques and other payment instruments on your
account including the instances where we may credit your
account with the value of a cheque for which we might
not have received value ourselves;
clearance and the effect(s) it may have on your account;
how a cheque
can become a stale cheque and the effect of this;
orders and stop orders work, the difference between the
two and how to stop and/or cancel them;
on electronic banking services including the special
requirements which we expect of you if you bank
the different functions of any card(s) issued to you;
when your account details may be passed on to credit
risk management services;
any special procedures or safeguards required of you to
ensure safer banking.
3.3. Charges and Fees
We will provide you with details of charges for basic
banking services – full details of charges for any
service or product are available on request. We will
inform you of the charges (and the applicable amount
where possible) for a service or product before or when
it is provided to you, and at any reasonable time you
ask while you are a client, including information on:
whether fees or charges are negotiable or not;
changes to charges for basic banking services, after
reasonable prior notice, by two or more of the following
letter/statement messages/other personal notice;
notices/leaflets in branches;
electronic banking system messages;
announcements (through short message services [sms]); or
announcements on our website.
any additional charges and interest you may have to pay
on overdrafts and fixed term products when:
becomes overdrawn without prior agreement;
your overdraft limit;
falls into arrears;
to settle a loan early; or
you make an
early withdrawal or early cancellation.
the interest charges which apply to your account(s),
interest will be deducted from or paid to you;
the basis on
which interest is calculated;
increases are made to the interest rates which apply to
your account(s). We will communicate any increase in the
mortgage rate in the public media, as well as directly
3.4.Variation of terms and conditions
We will provide you with:
reasonable notice of changes to the terms and
conditions of any account, product or service,
applicable to you, so that you will have time to decide
whether or not you want to continue with the product or
copy of the new terms and conditions or a summary of
the changes at the last address you provided to us, if
we make material changes to them.
We will provide you with:
information regarding your rights to access your
personal information held by us;
information regarding what identification and
verification documents (which we may verify) we need to
prove your identity when you interact or and transact
with us. This includes when you first apply to open an
account and during our relationship with you, when you
obtain a loan or other credit facility or when you
conclude other transactions, which is important for your
security and may be required by law;
information on what checks we may carry out with
credit risk management services and other relevant
reasonable prior notice of our intention to close any of our bank
branches, outlets or ATM/ electronic banking centres;
advertising and promotional material, which is
clear, fair, reasonable, not misleading and complies
with the appropriate advertising authority guidelines.
3.6. Confidentiality and Privacy:
We will treat all your information as private and
confidential (even when you are no longer a client).
Except as set out in 4.7.1 below, we will not disclose
any information about your accounts or your personal
details to anyone, including other companies in our
group, other than in four exceptional cases permitted by
law. These are:
where we are legally compelled to do so;
where it is in the public interest to disclose;
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
where disclosure is made at your request or with your consent. If you
make use of electronic banking facilities like telephone
banking, and the telephone calls are recorded, consent
to disclosure might be recorded verbally.
3.7. Disclosure of information to third parties:
3.7.1. Information about your personal debts and/or the
manner in which you conduct your accounts may, in
appropriate circumstances, be disclosed to credit risk
management services where:
you have fallen behind with your payments or you are in
default with the terms of a product or service, and you
have not made satisfactory proposals to us for repayment
of your debt following formal demand and you have been
given at least 28 calendar days’ notice of our intention
to disclose; or
you have given us written, electronic or in the case of telephone
banking, verbal consent; or
your cheque is referred to drawer, in which case the
information may be placed on a cheque verification
If the amount owed or the arrears amount is in dispute,
we will also disclose this fact, but not the amount
3.7.2. In respect of the marketing of services or
products if you are:
a new client, we will obtain your consent at the beginning of
your relationship with us;
an existing client we will inform you that you may withhold or withdraw
your consent and how to exercise that choice. If you do
not withhold your consent, we will presume that you
agree to us continuing to market the services or
With your consent we may:
bring to your attention details of our services and products,
which may be of interest to you;
give certain information about you to other subsidiaries within our
group for marketing purposes;
inform you about another company's services or products and,
if you respond positively, you may be contacted directly
by that company.
We will not pressurise you by suggesting that access to
any our services and products is conditional upon your
3.7.3. We will inform you when we record your telephone
conversations with us and the reasons for doing so.
3.7.4. We will keep any documents relating to your
transactions or relationship with us for a period of not
less than 5 years from the date of the transaction(s)
concerned or termination of our relationship with you.
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Certain principles regarding our conduct as your
bank, and your conduct as our client, are important
during our relationship.
What you can expect from us
4.1. Provision of credit
4.1.1. We will market and approve credit responsibly
(based on the information you supply to us), to match
your borrowing requirements and capabilities and supply
you with suitable products, in an attempt to ensure that
you are not extended beyond your financial means.
However, our ability to do so depends on your compliance
with our expectations of you set out in 4.11.4 regarding
your financial affairs.
4.1.2. All lending will be subject to an assessment of
your ability to afford and willingness to repay. This
assessment may include:
taking into account your income and expenses, including the
dependability of your income;
how you handled your financial affairs in the past;
information obtained from credit risk management
services and related services, and other appropriate
parties, for example, employers, other lenders and
how you have conducted your previous and existing accounts with us;
information supplied by you, including verification of
your identity and the purpose of the borrowing;
credit assessment techniques, for example, credit scoring;
your age in relation to the loan facility required;
any security or collateral provided; or
your statement of assets and liabilities.
4.1.3. If we decline your application for credit we will
inform you of the reasons for this, which could include:
the overall credit score;
information obtained from credit risk management
a specific policy of the bank.
With automated credit scoring systems these reasons may
not be explicit, in which case only general reasons
shall be provided.
If you want us to accept a suretyship or other security
from someone for your loans, we will inform you and the
surety or the surety’s legal adviser that the surety is
entitled by law to your confidential financial
encourage the surety to take independent legal advice to make sure that
they understand the commitment and the potential
consequences of such a decision. All the documents the
surety will be asked to sign will contain this
recommendation as a clear and prominent notice;
advise and caution the surety that by giving the
suretyship or other security they may become liable
instead of, or as well as, you;
advise the surety whether it is a limited (and the maximum value) or
unlimited suretyship and tell them about the
implications of an unlimited suretyship; and
inform the parties of the implications of suretyships in
terms of their periods of validity, the potential
amount/s of indebtedness, the nature of the debt covered
and the cancellation/termination process.
4.3. Mortgage Loans
4.3.1. Buying a property with a mortgage loan may be
your most important financial commitment, therefore:
when you apply for a mortgage loan, and on reasonable request, we will
explain to you the operation and repayment of your loan,
including all the charges and costs, the benefits of
payment acceleration and the additional interest and
costs payable should your account fall into arrears;
we will assist you to understand the wider responsibilities and rights
that you will have as a property owner, and assist you
with a detailed affordability assessment should you
require it. This could include informing you about the
repayments on your loan and additional costs that apply
to homeownership, such as rates and taxes;
we will clearly explain what the potential impact of variable
versus fixed interest rates will be so that you can make
an informed decision in this regard;
we will explain to you that you risk the possibility of
losing your property should you not keep up your loan
we will also explain the steps required by law should we have to
act to repossess your property due to your failure to
meet your repayment obligations or your failure to
comply with any other terms and conditions of the
4.3.2. As financiers we have neither the skills nor the
resources to monitor or control the quality of the
property 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 do not necessarily
inspect the property and do not accept any
responsibility or liability for the structural or other
condition of the property, even if the loan is a
development or building loan.
4.3.3. We will explain to you the need to be careful
when signing building progress payment documents.
4.3.4. We will ensure that you are clearly informed of
the different types of insurance, whether the bank
requires insurance be taken out, whose responsibility it
is to arrange for the insurance and what insurance cover
4.3.5. 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 sound property 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.
4.3.6. Should you require it, we will provide you with:
the assessed security value of the property; and
the minimum replacement cost that we place on the
buildings and improvements for insurance purposes.
4.3.7. When your mortgage bond has been repaid in full
we will inform you how annual insurance premiums and
other charges and administrative matters can be dealt
with in future.
4.4.1. We will not rely on set-off unless we are by law
allowed to do so. We will inform you within a reasonable
period of time if we have effected set-off in respect of
any of your accounts. You will receive timely statements
(if statements are generally produced on the relevant
account), which will reflect the set-off position.
4.4.2. Prior to setting off your debit and credit
balances, we may also elect to place any of your funds
on hold pending a discussion with you on any amount owed
4.5. Foreign Exchange Services
4.5.1. We will explain the service, details of the
exchange rate and the charge applicable to any foreign
exchange transactions you want to make. If it is not
possible to provide specific details of charges, we will
inform you of the basis on which these will be worked
4.5.2. If you wish to transfer money abroad, we will
inform you how this can be done, what documentation may
be required from the South African Revenue Service
and/or the South African Reserve Bank. We will provide,
at least, the following information:
a description of the services and how to use them; and
an indication of when the money you have sent abroad should be available
to the recipient and any reason for potential delays;
4.5.3. We will give you information on any commission or
charges you will have to pay, including information
where a foreign bank's charges may also have to be paid
by the recipient or by you.
4.6. Financial Difficulties
4.6.1. If you find yourself in financial difficulties,
you should let us know in good time and, in particular,
respond to our communications 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 assist.
4.6.2. Should your account go into default, our first
step will be to try to contact you to discuss the
matter. It is therefore imperative that you inform us at
all times of any changes to your address and contact
With your co-operation, including timeous communication
to us about your difficulties, we will take reasonable
steps to develop a plan with you for dealing with your
financial difficulties, consistent with both our
interests and yours.
4.7. Account Operations
We recommend that you check your statements or savings
account book regularly. If your statement or savings
account book has an entry which seems to be wrong, you
should tell us as soon as possible, so that we can
To assist you to manage your account and verify entries on it, we will
provide you with regular account statements. These may
be 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
Statement details may also be available on request, through electronic
banking terminals or other means of electronic or
telephone banking if you have registered for such
facilities with us.
You may be charged an additional fee for statements requested over and
above those normally provided. You should manage your
use of statements to meet your requirements taking into
account the charges associated with providing them.
We may keep (by arrangement) original cheques paid from
your account or copies of these, for the period
prescribed by law. If we do, we may charge a fee for
supplying you with copies.
If, within a reasonable period after the entry has been made, you
dispute 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. We may charge a fee for doing so.
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 and in the most cost-effective way,
assuring you of our efforts to maintain confidentiality
When we become aware that a cheque deposited by you is returned
unpaid, we will inform you thereof within a reasonable
period and in the most cost-effective way.
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 for the cheque ourselves. Should we
in turn not receive value for any reason, we will
reverse the credit and any associated interest.
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 cannot accept responsibility for
the loss or theft of the cheque in the system.
Consequently, if a cheque or other payment instrument
you deposit 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 to 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 in writing to act
on your behalf, we will take reasonable steps to get a
replacement cheque. We may require an indemnity from you
in case the original cheque has already been paid to
We will advise you of the various ways of issuing a cheque.
4.8. Cards, PINS, passwords, and other unique means of
We may issue you a card, or replace one that has already been
issued, and may charge fees for this.
Your PIN (Personal Identification Number), password and other
unique means of identification are strictly
confidential. Where a bank supplies these, they will be
issued only to you, separately from your card where
applicable. You should never disclose your PIN,
password, or other unique means of personal
identification to anyone, and specifically not any
employee of the bank.
We will tell you if you can select your own PIN, password or other
unique means of personal identification. We will
encourage you to avoid birth dates and simple sequences
numbers such as 1111; 12345 and so on.
We will inform you of the procedures to change your PIN, password
or other unique means of personal identification when
the need arises.
We will publish the contact details you should use to report
lost or stolen cards or chequebooks in statements, at
ATM’s or through other means of communication to you.
4.9. Responsibility for Losses
4.9.1. After you inform us that a chequebook, savings
account book, card or electronic purse has been lost or
stolen or that someone else knows your PIN, password or
other unique means of personal identification, we will
take immediate steps to prevent these from being used to
access your account.
4.9.2. Subject to sections 4.9.3 and 4.9.4, we will
refund you the amount of any transaction together with
any interest and charges associated with the disputed
where you have not received your card and it is misused by someone
for all transactions not authorised or effected by you after you have
informed us (and we have given you a reference number)
of the information listed in 5.9.1 (except “e-cash”
transactions which we cannot audit).
if additional money is transferred from your account to your
electronic purse after you have informed us of its loss
or theft (and we have given you a reference number) and
you have informed us that someone else knows your PIN,
password or unique means of personal
where system malfunctions have occurred in ATMs, or associated systems,
which were not obvious or subject to a warning message
or notice at the time of use.
4.9.3. If you act fraudulently you will be liable for
all losses. If you act negligently or without reasonable
care and this has caused or contributed to losses, you
may be liable. This may also apply if you fail to follow
the safeguards set out in sections 5.11, 5.13 and 5.14.
4.9.4. Where a credit card transaction is disputed, we
accept the burden of proving fraud or negligence or that
you have received your card. In such cases we expect you
to co-operate with us and with the police in any
4.10. Closure of Accounts
4.10.1. We will not close your account without giving
you reasonable prior notice at the last address that you
4.10.2. We reserve the right, however, to protect our
interests in our discretion, which might include
summarily closing your account:
if we are compelled to by law;
if you have not used your account for a significant period of time;
if we have reasons to believe that your account is
being used for fraudulent purposes.
What we expect from you
There are certain principles that you as our client
should adhere to in our relationship.
4.11.1. It is essential that you keep us informed of any
changes to your personal details or financial situation.
4.11.2. It is critical that you tell us as soon as
possible if you suspect or discover that:
your chequebook, savings account book, cards and/or electronic
purse have been lost or stolen;
someone else knows your PIN, password or your other unique means of
personal identification; or
there are transactions on your accounts which you have
4.11.3. When you report a lost or stolen chequebook,
savings account book, card or electronic purse, please
ensure that we give you a code or other reference number
to confirm that you have reported it. Please ensure that
you safeguard this number for future reference, as this
is your proof of having reported the loss or theft.
4.11.4. You are obliged to inform us and keep us
informed of all your loans, other financial commitments,
income and changes to these whenever we review or
discuss our relationship with you and to act responsibly
in all your financial affairs at all times. This will
enable us to meet our obligation in section 4.1.1.
4.12. Account Operation
4.12.1. You should ensure that you manage your banking
products 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.
4.12.2. If you wish to consider the tax implications of
your choice of product or account, you should seek
independent advice from an appropriate consultant
qualified to provide this to you.
4.13. Reasonable Care
4.13.1. Taking care of your chequebook, savings account
book, cards, electronic purse, PINs, passwords and other
unique means of personal identification is essential to
help prevent fraud and protect your accounts. Always
ensure that you:
do not keep your chequebook or your PIN and cards together;
do not allow anyone else to use your card, PIN, password or other unique
means of personal identification;
always take reasonable steps to keep your card, PIN, password and other
unique means of personal identification secret, safe and
secure at all times; never disclose your PIN or password
to anybody, including family, friends or any bank
employee who offers to assist you;
never write down or record your PIN, password or other unique means of
personal identification. If you must write it down,
ensure that it is not accessible to others and that it
is disguised. For example, never write down or record
your PIN using the numbers in the correct order;
are alert to the risk of muggings and card swapping when using ATMs
or other electronic banking devices;
do not use ATMs or associated systems that have obviously been tampered
with or that contain warning messages;
do not use PINs that are easy to guess, such as 1111 or 12345 or
your date of birth, etc; and
use your credit card with care.
4.13.2. We expect you to report all incidents of stolen
chequebooks, savings account books, or cards, as well as
fraudulent use of cards or other suspected fraudulent
transactions to the police for investigation.
4.13.3. You should treat your electronic purse like cash
in a wallet. You may lose any money left in the “e-cash”
part of the electronic purse at the time it is lost or
stolen, in just the same way as if you lost your wallet.
4.13.4. You may be vulnerable to crime when you use
certain ATMs. We will take reasonable precautions to
minimise crime at those ATMs. You also have a
responsibility to do the same. You should therefore
adhere to any notices of caution at ATMs in order to
protect yourself against crime at ATMs. In particular,
be wary of anybody who comes near you or attempts to
distract you while you are using an ATM.
4.14. Internet and Telephone Banking
Internet and telephone banking services make some
banking services and transactions more easily
accessible. However, as with all our products and
services, there are certain basic precautions that you
should take to protect yourself against fraudulent
transactions. Ensure that you familiarise yourself with
these on our website or Internet banking portal, or with
our telephone banking department.
Review your bank statements and reconcile your accounts regularly.
Do not under any circumstances reveal your secret access code/
PIN/password or other unique means of personal
identification to anyone, and especially not to one of
our staff members, as this can be used to access your
electronic banking facility.
Check the site security certificate for the Internet
banking site each time before you do your banking.
Ensure that a temporary password is changed to a
password of your choice known only to you.
Should you be aware that your secret access code/
PIN/password or other unique means of personal
identification has been observed by anyone, change it
The security of your personal computer is your responsibility.
Ensure that you read and are familiar with the Terms and Conditions of
your bank’s website and the product terms and conditions
on the website.
Enter numbers accurately when doing your banking and in particular with
Ensure that you make payments to the correct account or beneficiary. We
cannot reverse duplicate or erroneous payments you make
to other accounts without the specific consent of the
Do not use the browser facility to store your password in order to avoid
having to enter it each time you transact using Internet
Ensure that there is adequate anti-virus and security
software installed and enabled on the computer you use
for Internet banking.
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5. DISPUTE RESOLUTIONS
5.1. Internal Dispute Resolution
It is important that your disputes with us are addressed
5.1.1. We have internal procedures that comply with the
standards determined by the Banking Association South Africa
for handling complaints fairly and speedily. These
include establishing a set time for an initial
acknowledgement of your complaint. We will indicate how
long it may take to respond more fully. We will provide
you with information on these procedures on request.
5.1.2. If you wish to lodge a complaint, we will inform
you how to do so and what to do if you are not satisfied
with the outcome. Our branch, client-care or call centre
staff will assist you with any queries. You might also
be able to use our website for this purpose.
It is important that you contact us first and give us
the opportunity to resolve your dispute before lodging a
5.2. Ombudsman for Banking Services
If we do not resolve your dispute, or you are not
satisfied with the outcome of our dispute handling
process, you are welcome to make use of the services of
the Ombudsman for Banking Services. We will also, where
relevant, give you information on other Ombudsman
offices, which might have jurisdiction over your
5.2.1. An independent Ombudsman for Banking Services
Office has been established. The Ombudsman for Banking
Services is available at no cost to you to consider any
complaint that we have not been able to resolve with
you. The Ombudsman for Banking Services is entitled to
mediate, make a determination based on this Code or on
the law where the law is reasonably certain or make a
recommendation in other circumstances including those
based on equity. If we decline to accept any
recommendation made by the Ombudsman for Banking
Services, then the Ombudsman may, at their discretion,
publish the fact that a recommendation was made and we
have refused to accept it. A determination made by the
Ombudsman for Banking Services may be made an order of
5.2.2. All banks that are members of the Banking
South Africa are automatically subject to the
jurisdiction of the Ombudsman for Banking Services. We
will supply you with the Ombudsman for Banking Service’s
brochure, address, telephone and fax numbers and we will
ensure that the Ombudsman for Banking Service’s contact
details are prominently displayed in our branches. If we
fail to resolve your dispute with us, or at your
request, we will provide you with the documentation
required to lodge a complaint with the Ombudsman for
Banking Service’s Office.
The current contact details of the Office of the
Ombudsman for Banking Services are:
The Ombudsman for Banking Services
P O Box 5728,
0860 800 900, (011) 838 0035
Fax : (011) 838 0043
In respect of investment and deposit related matters,
you can consider the Financial Advisory and Intermediary
Services Act No 37 of 2002 (FAIS) and the FAIS Codes or
refer your complaint to the FAIS Ombudsman.
The current contact details of the FAIS Ombudsman are:
The FAIS Ombudsman
P.O Box 74571
Fax: 012 348 3447
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6. REVIEW OF THE CODE
The Banking Association South Africa will monitor and review
this Code periodically. You can submit complaints and
suggestions concerning the terms and general operation
of the Code in writing to the Banking Association South
The current contact details of the Banking
The Banking Association
P.O. Box 61674
(011) 645 6700
Fax: (011) 645 6896
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7. 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.
7.1 ATM (Automated Teller Machine):
A cash machine or freestanding electronic banking device
dispensing cash which may also provide other information
or services to clients who have a card and a PIN,
password or other means of unique identification.
Includes wholly owned subsidiaries of the Bank where
they are engaged in providing banking services.
7.3 Basic banking service:
The opening, maintenance and operation of accounts for
transmission of money by means of cheque, other payment
instruments, savings accounts, current accounts,
call, notice and fixed deposits.
A general term for any plastic card used to pay for
goods and services and to withdraw cash. For purposes of
this Code, it excludes electronic purses.
7.5 Credit risk management services:
Organisations which hold information which is of
relevance to lenders, for example relating to credit
risk, fraud, identity and address or credit repayment
profile. Banks may refer to them 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 service
7.6 Credit scoring:
A system which banks use to assist in making decisions
about granting consumer credit. Credit scoring uses
statistical techniques to measure the likelihood that an
application for credit (a loan) will be a good credit
7.7 Debit Order:
An agreement between you and a company or a third party
in which you authorise the company or third party to
take money out of your banking account for services
that entity provides to you. Debit orders may be for
fixed or variable amounts.
7.8 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. Some purses may also have an “e-cash” facility
for small value transactions, which are not recorded in
an audit trail.
7.9 Financial difficulties:
Any circumstances which might have an adverse effect on
a client’s financial ability to fulfil contractual
A group means a holding company and its subsidiaries as
defined in the Companies Act 61 of 1973.
A word or an access code a client selects to permit them
access to a telephone or home banking service and which
is also used for identification. A client may
occasionally be supplied with a temporary password which
must be changed by the client to a password unique to
them. Temporary passwords may be less secure than other
passwords and failure to immediately change this
temporary password may be construed by the bank as
negligence on the part of the client.
7.12 Personal client:
A natural person, whether carrying on business or not,
who maintains an account or who receives other services
from a bank.
7.13 PIN (Personal Identification Number):
A number provided by the bank to a card holder or chosen
by a cardholder/client, on a strictly confidential
basis. Use of this number by the client will enable the
client to withdraw cash and access other services from
an ATM or point of sale device and can be used as an
authentication mechanism on many other delivery
Words used to describe items of value such as a mortgage
bond registered over a property, share certificates,
life policies, etc, which represent assets used as
support for a loan or other credit facilities. For
example under a secured loan the lender has the right to
sell the security if the loan is not repaid.
When available funds in one account of an account holder
are used by the bank to settle a debt or part of a debt
in another account of the same account holder.
7.16 Small business:
An association of natural or legal persons incorporated
in or outside the Republic of South Africa, which has
legal personality or enjoys a similar status in terms of
which it may enter into contractual relations and legal
proceedings in its own name and whose turnover for the
last financial year was less than R5 million.
7.17 Stale cheque:
A cheque which has not been paid because its date is too
old. An example of this would be where a cheque is
presented for payment six months after the date
appearing on the cheque. There may be different time
limits applicable and clients should verify these with
7.18 Stop order:
An instruction given to your bank to pay funds to a
nominated third party, at a fixed amount on a regular
basis. The bank acts on your instructions and the third
party is not given authority to debit your account as is
the case with a debit order.
An undertaking given by a person called the surety, to
pay the debts of another person (known as the principal
debtor),if that person fails to pay.
7.20 Unique means of personal identification:
A selection of memorable facts and information of a
private and personal nature chosen by the client (the
sequence of which is known only to the client) which can
be used for identification and to verify identification
when accessing accounts.
7.21 Unpaid cheque:
This is a cheque, which, after being deposited into the
account of the person to whom it is payable, is unpaid
for whatever reason and subsequently returned to the
account holder by the bank. This leaves the person to
whom the cheque is payable without the money in their
account. A replacement cheque needs to be obtained by
the owner of the account (the ‘payee’).
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