Adv John Simpson, the FAIS Ombud
The Office noted media reports that consumers, most notably the elderly, have reported unauthorised funeral policy premium deductions against their SASSA grants. The Office of the FAIS Ombud has also seen a steady increase in similar complaints from elderly complainants.
Based on the complaints received, consumers submit that intermediaries from various insurance companies approached them, telling them they had won food vouchers or entry into competitions. During these interactions, the intermediaries obtain personal information such as photos (for facial recognition) and fingerprints. This biometric information is used to process a premium deduction directly against the complainant’s SASSA grant.
In other complaints, the complainants submit that they were tricked into accepting a DebiCheck SMS authentication. This allows the premium deduction to be made directly from the complainant’s bank account. Complainants can also be tricked into signing policy forms, which include a debit order authorisation.
The Office investigates these matters and resolves the complaints wherever possible. If the evidence supports a finding that the complainant was misled into authorising the premium deduction, or did not agree to it, the Financial Services Provider will be ordered to refund the premiums and stop the policy deductions. At the very least, the Provider will be ordered to cancel the policy and stop the premium deductions.
The Office of the FAIS Ombud wants to encourage all SASSA recipients, especially those receiving the Older Persons Grant, to remain vigilant and to look out for the following:
- Be cautious of individuals who approach you in malls, outside SASSA Offices, or other public settings, alleging that they can enter you in competitions, provide vouchers, or provide you with quotations for products like funeral policies or other financial products.
- To enter a competition, one should not have to provide one’s identity number or banking information. You do not need to provide an identity number or banking details for someone to generate a quotation for a funeral policy or any financial product.
- Do not acknowledge any SMS that is sent to you under the pretence of confirming the authenticity of your banking details. By acknowledging a DebiCheck SMS, you are allowing the deduction of premiums from your account.
- Do not allow anyone to access your mobile phone and approve messages you receive.
- Be suspicious of any document that you are asked to sign. Make sure you read the document and clearly understand what you are agreeing to. If you are unable to read the document, are not provided with time to read it, or are pressured in any way to sign, refuse to sign it.
- Regularly check your bank account and statements to identify any deductions that you are not aware of. The earlier you identify any unauthorised deductions being made from your bank account or SASSA payments, the quicker you can address the situation and limit any potential financial prejudice.
- Be wary of anyone requesting your fingerprint or to take a photo of you. This should not be required to receive vouchers, enter into a competition or to generate a funeral policy quote.
If you believe a funeral policy has been activated against your SASSA grant or policy premiums are being deducted from your bank account without your consent, please lodge a written complaint directly with the service provider debiting your account.
If the complaint remains unresolved after six weeks, you can visit our Complaints Portal at www.faisombud.co.za and select ‘Lodge Complaint’. Alternatively, you may submit a written complaint to info@faisombud.co.za. You can also call our Client Care Centre at (012) 762 5000 or Sharecall at 086 066 3274 for assistance in submitting a complaint.
ENDS
