Avoid WorldVentures

Over the last decade we’ve covered a number of pyramid schemes that have tried to exploit us in Botswana. One of the longest-running was TVI Express, a pyramid scheme that claimed to be based on the sale of travel discount vouchers. Let’s be clear about one thing. A discount voucher isn’t a product, it’s a reduction in the price of a product. What they were really interested in is you recruiting more and more people beneath you, forming the pyramid that makes the people at the top so much money.

Luckily authorities around the world, in places as varied as Namibia, Lesotho, the US State of Georgia and Indonesia soon realized they were a scam and outlawed them. They soon disappeared here in Botswana too as the noose tightened around them.

Another early pyramid scheme in Botswana was “Success University” (which wasn’t really a university) that sold what it liked to call “coursework” but which was in fact just recycled material from a range of prehistoric motivational speakers. As soon as we heard they were recruiting people in Botswana we sent people undercover to their presentations to hear for ourselves how they were describing and selling their business. The story was always the same: join the scheme and you can be rich. They even went so far as to promise specific earnings, saying that you could earn $50,000 per year (about half a million Pula) from the scheme. Lies.

Unfortunately Success University didn’t take kindly to criticism. I arrived at our office early one morning to find four men waiting at the door. They were, they said, from Success University Head Office in South Africa and they were going to speak to me. Luckily they were polite, even when they said that what we had been saying about their scheme was untrue and they were going to sue us. What, I asked, had we said that was untrue? Could they justify their promises of riches? Were their products of any real value? Were they actually entitled to call themselves a “university”?

Silence.

I think the secret recordings we’d made in their presentations helped persuade them that we had evidence on our side as well as some understanding of how pyramid schemes work. They were also somewhat subdued following rulings by the Bank of Namibia that they were an illegal pyramid scheme and that Namibians should steer clear of them if they valued their money. They went away from our office without the apology, the retractions and the retreat they’d expected from us.

Then something curious happened. Success University stopped trading and all the people who had been recruited into that pyramid scheme were transferred to another one called WorldVentures. This was bizarre because superficially the businesses were totally different. Success University claimed to offer those educational materials but WorldVentures claimed to be in the travel business selling more discounts.

In fact what they had in common was the business model. They were both pyramid schemes.

WorldVentures is a fairly long-lasting pyramid schemes but I suspect it won’t be around for much longer. I’ve known of them for over 4 years and they’re still quietly active here in Botswana but the net is closing in on them elsewhere. The Gaming Board in Norway has recently announced that following a lengthy investigation they are certain that WorldVentures is a pyramid scheme. Their main criteria for deciding this was simple. 95% of all the money paid out to recruits in Norway was for the recruitment of other people, not from actually selling things.

Like many other MLMs that try to appear legitimate WorldVentures have been forced by various countries to post income statements that illustrate what their distributors actually earn from their business. Note important one point. These statements only talk about income, they never mention profit. These figures exclude all the costs associated with running the business like transport, phone and internet bills.

The most recent Annual Income Disclosure Statement I could find for WorldVentures covered their US operation in the year 2012 and it makes sad reading.

Firstly 77.5% of their representatives made no money at all. Nothing. Zero.

For their "Active Representatives", who comprise 82% of the people who made money, their average annual income from WorldVentures was a measly $102. That's roughly P85 per month. And remember that's income, not profits. It's not money you can spend on yourself.

The next group up the pyramid were "Qualified Representatives" who comprise 14% of the people who made money. They made an average of $614 per year, P500 per month, again that’s income, not profit.

The most important figures are about the high earners. Like all pyramid schemes the key thing is to be at the top. The top 3.5% of the people earning money from WorldVentures made 84% of all the money. Worse still, if you include the people who made no money at all you get the real figure. 84% of all the money flowing through the WorldVentures is taken by the top 0.8%.

And those lowest level earners, the "Active Representatives"? They're 82% of the earners but between them they only earn 7.8% of all the money.

Let me put it another way. More than 99% of Americans who join WorldVentures make less than poverty wages from their business.

The lesson is simple. If you own WorldVentures then you're rolling in money. Otherwise all you're doing is handing over your cash to those people and not seeing anything in return.

I’ve heard that WorldVentures will be making another effort next month to recruit people in Botswana into their pyramid. I suspect that as regulators are investigating them elsewhere in the world they’re looking for new countries to explore and new victims to exploit. Are we going to let ourselves be their next victims?

Please spread the word and prevent our country from being exploited by yet another pyramid scheme.

The Voice - Consumer's Voice

Am I entitled to a refund?

I purchase a Nokia 925 cellphone in Dec 2014. Thereafter the phone had a problem of producing excessive heat, and was taken to the store to be repaired in January and they were unsuccessful. A new one, the same model was given to me as replacement. In May, the switch of the new phone was not responding and I took it back to the supplier again for repair. The following day, the phone could not pick the network and I returned it for further scrutiny.

Later they informed me that the phone cannot be repaired and instead they will replace it. I could not agree and instead I informed her that I wanted my cash back. She then called her manager to join us in a meeting for further discussion. He informed me that they will borrow me another phone while waiting for a response from Microsoft about problem of the phone. In that meeting I emphasized refunding because of no longer have confidence on their products, i.e being replaced time and again. The gentleman called me 5 days later and informed me that Microsoft response was that they should give me a Nokia Lumia 930, a different model as a replacement my phone. I informed him that I still stand by my decision to be refunded. His response was that they cannot not assist me with anything and I can seek assistance somewhere else if I wish to do so.

My major worry is that what is going to happen to the phone beyond warranty period. I am therefore seeking your assistance to reclaim my money back.

I’m sorry to hear of your problem.

Section 13 (1) (a) of the Consumer Protection Regulations says that suppliers must offer goods and services that are "of merchantable quality”. Clearly the first two phones you were given failed that test. In these circumstances you have a right to one of the three ‘R’s: a refund, repair or replacement but, importantly, it’s up to the supplier to decide which ‘R’ they choose.

I suspect that it’s reasonable of them, now that two Nokia 925s have failed, to offer you an entirely different device, so long as it’s of at least the same quality and value. My understanding is that a Nokia Lumia 930 is a better equipped device than a 925 so my recommendation is to take the better device. Your warranty will still be from the original date of purchase, December last year.

An update: how to fix a problem

A couple of weeks ago I answered a reader’s request for help with her insurance company. She asked them to cancel her policy from March this year but they failed to do so and continued to deduct money from her account. She then called Mr A who referred her to Ms B, who asked her to write a letter to Mr C but that didn’t work and more money was deducted in April. She was then told to speak to Mr D who advised her to speak to Mr E who in turn referred her back to Mr C.

By this stage she was dizzy and confused and asked us for assistance. I contacted the insurance company and they responded within a couple of hours. I think it’s worth quoting their email in full.

“I acknowledge receipt of the e-mail, thanks a lot Richard for forwarding the e-mail through to us.

I have just called the client and have expressed our sincere apologies for the service lapse. It is clear from the customers complaint that she submitted a cancellation letter in February and has been tossed around ever since. I have as a result committed to the client that we will refund all the premiums from March to date.

We will have an internal investigation into the matter. We really appreciate the feedback as it helps us improve.”

That’s how you fix a problem. You thank the person who told you there was a problem and then call the customer and apologize, acknowledging the situation and your company's responsibility.

You then fix it.

Finally you do your best to find out how it happened and make sure it's not likely to happen again.

Congratulations to the company involved. If only more companies behaved like this.

BBC News: "Pakistan rocked by 'fake degree' scandal"

From the BBC.

"Was the Pakistan-based internet technology firm Axact doing what a New York Times International report last week accused it of doing - selling fake university degrees online?"

It looks like we have them on the run!

Will you make money from WorldVentures? No.

WorldVentures is a pyramid scheme masquerading as a Multi-Level Marketing scheme according to at least one national regulator.

Like many other MLMs that try to appear legitimate they've been forced by various countries to post income statements that illustrate what their distributors actually earn from their business. Note one point though. These statements only talk about income, they never mention profit. These figures exclude all the costs associated with running the business like transport, phone and internet bills.

The most recent Annual Income Disclosure Statement I could find for WorldVentures covered their US operation in the year 2012 and it makes sad reading.

Firstly 77.51% of their representatives made no money at all. Nothing. Zero.

For their "Active Representatives", who comprise 82% of the people who made money, their average annual income from WorldVentures was a measly $102. That's roughly P85 per month. And remember that's income, not profits. It's not money you can spend.

The next group up the pyramid were "Qualified Representatives" who comprise 14% of the people who make money. They made an average of $614 per year, P500 per month, again income, not profit.

The most important figures are about the high earners. Like all pyramid schemes the lesson is to be at the top. The top 3.5% of the people earning money from WorldVentures made 84% of all the money. Worse still, if you include the people who made no money at all you get the real figure. 84% of all the money flowing through the WorldVentures is taken by the top 0.8%.

And those lowest level earners, the "Active Representatives"? They're 82% of the earners but between them they only earn 7.8% of all the money.

The lesson is simple. If you own WorldVentures then you're rolling in money. Otherwise all you're doing is handing over your cash to those people and not seeing anything in return.

This is how pyramid schemes work. Don't be fooled.

Poison

No, this isn’t anything to do with food poisoning although that seems to be an on-going risk due to the often lamentable state of hygiene in certain stores and restaurants.

No, I mean organizational poison. Some organizations are toxic, both to their customers and to their staff.

A couple of years ago we ran a workshop for a company involved in healthcare and the people who attended were fantastic. They were energetic, fun and full of ideas on how to make their company better. The next week we did the same thing for another company, this time in the media business and they were even better. I have film of them dancing in the workshop, they were having that much fun. Then in the third week we did the same thing again with, this time with the employees of a parastatal.

What a disaster. It was like being at a funeral. People just sat there looking miserable, they hardly spoke and getting them to suggest ideas for improvement was like pulling teeth. And why should It have been any different? Why on earth should these people have invested their time, energy and imagination helping their employer improve when the organization was sick from top to bottom?

I take the blame. It was my idea to run the workshop and I knew what this organization was like, I’d worked with them before and it had been painful. All the people I grew to knew and respect there either left or did their best to do so and the ones left were miserable and unmotivated.

The problem was a mixture of management who didn’t give a damn and a resulting atmosphere that discouraged all the things that make a business thrive, things like energy, passion and imagination.

It’s not just companies, there are even some people who are poisonous.

Unfortunately some people are just naturally nasty. I know the more optimistic among us (and that usually includes me) think that people are fundamentally good but are corrupted by bad influences and experiences but whether or not that’s true there remain some people who are toxic to their customers and to their colleagues.

Many years ago I worked in a company that employed an American woman who’s name came from the word “Devil” in her ancestor’s language and I’ve never met anyone quite so well named. She was a truly horrible, vindictive person who rejoiced in other people’s misfortune. She only kept her job because she could briefly switch those attributes off when dealing with our customers. However, as soon as they’d left the building she returned to her normal nasty self.

Maybe you know someone like this as well? I know that I’ve met two in the last year, people whose approach to dealing with their colleagues was so unpleasant that the people working with them were desperate to leave, just because of that particular coworker.

One of these people had no idea, and what’s worse, no interest in the effect he was having on his colleagues. He had spread rumors about them, alleging all sorts of scandalous misdeeds, none of which were true, just to give himself an advantage over them. He conveniently overlooked his own shortcomings and was in complete denial about certain things he’d done which had damaged his employer’s business. I think he was a borderline sociopath and the report I sent in to his employer said so. My recommendation was very simple. He’s toxic. Fire him.

However reason prevailed and the person in question submitted his resignation a few days later, presumably knowing that if he stuck around long enough they’d do it for him.

Luckily in this case the management of the organization had the courage to take action but that’s not always the case. Managers often hide their heads in the sand and hope problems will sort themselves out. Unfortunately they rarely do. That’s what good management is all about: taking decisions for the best of the organization and, just as importantly, its customers.

There are even attitudes that are poisonous.

The one I despise the most is the view that somehow good service isn’t possible “in our culture”. A variety of people, and not only foreigners with old-fashioned views on race, believe this. I’ve heard it from politicians, business leaders, managers and staff of organizations from across the business spectrum. They feel that there is something in our national bloodstream that prevents us from being attentive, from being business-like and from being successful. They say it’s our attitude or our absence of a work ethic or entrepreneurial spirit.

I genuinely think that this view is not only wrong, it is the opposite of the truth.

Firstly because I know a large number of people who have started businesses here in Botswana that have become successful through those old-fashioned values of hard-work, commitment and flair. We’ve seen parastatals revolutionized, supermarket chains go international and a number of locally formed companies become hugely successful. Who says we can’t do it?

I also think it’s true that our culture actually allows us potentially to deliver better than average service. Ask people what they think are our national cultural values and you’ll hear them talk about respect, courtesy and community spirit, three of the most important factors upon which excellent service is based.

So why aren’t we exploiting these things? Why aren’t we making a point of them? Why aren’t we advertising ourselves as a nation that is friendly but in our own, slightly reserved way? Why aren’t we demonstrating real pride in our culture at the point where is matters most, doing business?

The Voice - Consumer's Voice

Can I get a settlement?

Please help me here. I want a loan from this other Bank. Let's call it Bank B. But I still owe another Bank. I went to this Bank I owe and asked for settlement but they say I must first write a letter that I want to settle the loan and wait for 2 days before I can get the settlement amount. Is that really necessary or am just being punished? Surprisingly they r the only bank with such demands.

I don’t think the bank are “punishing” you, they’re probably just taking their sweet time calculating how much money you owe them. Maybe they’re not very good at maths?

Remember why banks lend people money. They certainly don’t do it because they’re generous and kind. They do it so they can make money from you in interest. If you decide to pay off the debt early they will potentially lose some of that interest so they calculate an amount somewhere between the amount you borrowed and the total amount they anticipated earning from you if you’d paid over the agreed time.

I think you should check the terms and condition of the loan agreement to see what it says about early settlement. You should of course have read this BEFORE you signed it and accepted the money but you should also do it now so you know what you agreed.

I’m not sure why the need you to write them a letter at this stage but I suppose if that’s what it says in the agreement then that’s what you should do. It seems a little old-fashioned but, well, some banks ARE old-fashioned.

When you get the settlement amount you need to sit down with a calculator to make sure they’ve given you a reasonable value. And you should also look very carefully at the loan agreement from the new bank so you don’t get into trouble with them later.

Does a discount nullify a warranty?

Last week I went purchase some office chairs. I was helped by one of the staff and we selected three chairs to purchase. I asked the lady helping me if she could call one of the floor who had helped me on my previous visit to see about discounts.

He came across and offered a P600 discount on a total purchase of P4000 so it would have been P3400 for the 3 chairs. We agreed and as we were walking to make the payment, I was very taken aback when he said that I should know I'm forfeiting the warranty on the products. I told him that was not my understanding at all and that a discount was a discount and to my knowledge it didn't assume the loss of warranty! He said I should meet him halfway and I simply walked out the store! I was really not impressed by the manner in which he conducted the deal and I was sorry for the time I ended up wasting in the store! Subsequently, I bought three chairs elsewhere with a discount and a 1 year warranty for each product!

Could you just clarify for me that offering a discount doesn't necessarily mean you lose the warranty? And if it does come at the cost of the warranty, then the merchant should inform you of that from the start of negotiations not at the end when you are about to make payment?

You are now officially my favorite consumer. You did exactly the right thing when you walked out of that store. I wish more people would do that when they’re told something as silly as this. Any company that makes that sort of claim doesn’t deserve our money.

You are also correct about the warranty. The Consumer Protection Regulations make it very clear that a store can only disclaim a warranty if you specifically agree to that and they are not allowed to cause even a probability of confusion about your legal rights. The only way they can say the warranty doesn’t apply to you is if you signed a document agreeing to that. Otherwise the warranty stays.

Consumer Alert: Romance scams

PRESS RELEASE

FOR IMMEDIATE RELEASE

19th May 2015
Consumer Alert: Romance scams

Following our recent Consumer Alert regarding recruitment scams we would like to warn the public about the rise in “romance scams” that are affecting the women of Botswana.

These scams involve an approach from a man on Facebook who claims to be based in Europe or the USA or sometimes claims to be a soldier serving in the US forces in the Middle East. Over several weeks he will befriend the woman, finally offering her romance, perhaps even the prospect of marriage.

All of these “relationships” then involve the man sending the woman a package that he claims contains valuable items such as jewelry, iPads, laptops and money. Someone claiming to be a customs agent, police officer or representative of a courier company then contacts the woman saying that the package has been detained and that it will only be released if the woman pays a fee.

In reality there is no package and no boyfriend. This is a scam. All the scammers want is the “fee” they claim is needed to release the package. In the last few months we have heard from several women in Botswana who have fallen for these scams and who have lost large sums of money as a result. However these women lose more than just money, they lose the affection and love they felt towards their fake boyfriend.

Consumer Watchdog urges anybody who is befriended by a stranger on Facebook to be skeptical and never to pay anyone for a package sent by such a person. If consumers are in any doubt they should contact Consumer Watchdog for free advice. We can be reached by phone on 3904582, by email at watchdog@bes.bw or by joining our Facebook group, Consumer Watchdog Botswana.


Richard Harriman

-----

Consumer Watchdog is a consumer support, advocacy and education service that offers advice to anyone in Botswana on their rights and how to resolve problems.

Everything Consumer Watchdog does for the consumers of Botswana is free and always will be.

Consumers can contact us by phone on 3904582, by email to watchdog@bes.bw or by joining our Facebook group, Consumer Watchdog Botswana.

How to recover from a cockup

Last week in The Voice I reported the following complaint:

I bought a funeral policy in 2013 deducting P181.90 per month. The agent was Mr A who is stationed at Maun. Around February I told Mr A that I want to terminate my policy with effect from March 2015 he then advised me to right a letter which I wrote on the 24 February and faxed it to him and he confirmed to have received it. I was surprised to find that they have deducted money for the month of March 2015 after telling them that I am terminating. I called Mr A and informed him that they have deducted money he then advised me to go to the nearest office for refund. I then went to Francistown branch and I was assisted by Ms B who told me that my policy was not cancelled. She then asked me to write another letter that shows that I have written a letter before and also to request for refund. She told me that she will send my letter to Maun and told me that I will be assisted by Mr C. I called Mr C after they have deducted money for the month of April and he did not assist me until I called their headquarters where I was assisted by Mr D. Mr D advised me to call Mr E who is the manager for Maun branch. I called Mr E and he told me that I am talking to the wrong person I should go back and talk to Mr C since he is the right person who can assist me. Until today I have not been assisted and I am afraid that they will continue deducting money even after cancelling my policy.

I even published a little diagram of the company's response.

Today we heard from the company. This is what they said:

"I acknowledge receipt of the e-mail, thanks a lot Richard for forwarding the e-mail through to us.

I have just called the client and have expressed our sincere apologies for the service lapse. It is clear from the customers complaint that she submitted a cancellation letter in February and has been tossed around ever since. I have as a result committed to the client that we will refund all the premiums from March to date.

We will have an internal investigation into the matter.

We really appreciate the feedback as it helps us improve."

That's how you do it.

1. Thank the person who told you there was a problem.
2. Immediately call the customer and apologise and sound like you really mean it. Use words like "sincerely".
3. Acknowledge the situation.
4. Acknowledge your company's responsibility.
5. Fix it.
6. Find out how it happened.
7. Make sure it's not likely to happen again.

Congratulations to the company involved. If only more companies behaved like this.

Will I be joining WorldVentures? No.

No, despite the efforts of someone on Facebook trying to recruit me, I won't be joining this particular pyramid scheme. Or any other.

Even though there no chance of me joining this pyramid scheme it's interesting to see the language they use when trying to recruit people and their reluctance to admit which company they're actually selling. In comes a message on Facebook.

Morning Richard, I trust that you are well and thank you for accepting my invite as well as adding me to your network. I would also like to share a concept that I am currently busy with; this concept is a combination of patented travel technology, a foundation endorsed by OPRAH WINFREY, as well as a financial growth option using a business model that has been endorsed by Mr.Donald Trump. If this does interest you and you would like to increase your financial portfolio as well as make more memories in 2015, you welcome message me and we can discuss further.
Looking forward to your response.
Kind Regards
Mr. Heeran Manilal

I asked him to tell me more.

Morning, I am glad that this interests you but before we go any further regarding this concept, I would like to know if you are the type of individual that are self-driven, has amazing leadership qualities but most of all, loves to travel and have fun.
My reason for the above requirements is that I would like to team up with you and expand this concept in Botswana as well as on a global scale. So basically I am looking to pioneer this concept with a selected group of individuals who share the same dream and desire to achieve a lifestyle that allows one to truly live instead of just existing. Seeing that you are a business man, the leadership and entrepreneurial qualities is a must and I am sure that you will see the amazing potential of such a platform.
Due to the nature of this concept being 100% visual which is impossible to explain in any other way except via a meeting or a link, I will however give you a brief explanation that will assist you in formulating an idea of this concept. The concept is solely technology based and it is tapped entirely into the largest industry in the world which is travel, this technology provides unmatched benefits in the travel industry via a networking growth system and via this kind of system, the concept is built on a sustainable platform, this system also provides an optional business platform should that interest you. The concept is the world’s 1st to embrace a free optional volunteerism foundation on a global scale and has been featured by the queen of giving back, OPRAH WINFREY as well as SABC new is South Africa.
Kindly provide your email address as well as contact number so we can schedule a meeting or proceed with the info.
Looking forward to your response.
Kind Regards.
Mr. Heeran Manilal

426 words so far but not a single clue as to the type or even name of the business he's selling.

Eventually he admitted it.

Richard Harriman: But what actually IS the business?
Heeran Manilal: Do you have a laptop or pc to view the business model via my website?
Richard Harriman: Yes, but what actually IS the business? Does it have a name?
Heeran Manilal: The company name is worldventures. Have you herd of us?

Why the secrecy? Is it because WorldVentures is actually a pyramid scheme that has been declared illegal in Norway? Is it because they have something to hide?

Also. for the record, WorldVentures has never been "endorsed" by Oprah Winfrey. The only connection is that there was once an article in her magazine about a glass recycling project that was apparently funded by WorldVentures. That is NOT the same thing.

Time for change

A reader wrote:

“Why is it that a lot of stores are ok with not giving change? It's rare to get back 10t or 5t change. And most of the time there is no apology or acknowledgement that they have short changed you. Asking after the change is usually met with shock at why you are fussing over small change. But if you are short by the same amount they refuse to help you. The amount of money that must be made from short changing hundreds of customers must be quite substantial. This can't be right.”

Someone on our Facebook group wrote:

“So this teller didn't want to give me my 30 thebe. I calmly asked her since when have they been running short of loose change and she said almost the whole day. Then I said ok, how about you give me some extra pieces? She looked puzzled and I said the 10 thebes or 5 thebes customers left during the day will cover for that. She then opened the till and gave me 50 thebe.”

Another member said:

“I paid for my items with a P100 note, my change was supposed to be P84.15, the lady proceeded to give P84.10 and couldn't even be bothered to let me know she doesn't have 5 thebe coins. Instantly I remembered someone on here complaining about the same treatment, so I asked nicely for my 5 thebe. And there she is looking at me like I'm being unreasonable. And her tone in telling me she doesn't have 5 thebes only when I demanded it was priceless. Meanwhile the line behind me is from here to Jozi and I'm standing there demanding my 5 thebe. I had my game face on though so she caught on quickly that I meant business. She had to hola at the Cashier next to her for 5 thebe. She'd rather short change me 5 thebe than give me 20 thebe. I value that 5 thebe as much as she does.”

Yet another said:

“I did the same today at [a shop] at Riverwalk. My change was P30.10 and she gave me P30. When I asked for the 10 thebe she said she didn't have any 10 or 5 thebes. I said in that case I'll take 25 thebe and she gave it to me!”

One even warned a specific store that had repeatedly done the same to her.

“PLEASE don't try your luck with my 5 thebe change, that will NEVER pass. I've been robbed enough 5 thebes to make me a millionaire broad daylight. And for you to say you don't even have 10 thebe is absurd. With a straight face I demanded change and got 25 thebe.”

Small denomination coins seem to be an endangered species in Botswana. The lower their value the harder to find they seem to be.

Many people have contacted us in the last few months all telling the same story. They pay for their goods at the checkout and are short-changed by five or ten thebe. I think almost everyone has had this experience, even if they don’t know it. Do we always actually check our change at the checkout?

So why do stores do this?

Maybe it’s not their fault? Is it possible that there simply aren’t enough 5t and 10t coins in circulation these days? I find that hard to believe, unless the Bank of Botswana has been withdrawing them from circulation (we’ll ask them that). Why would they do that?

Perhaps stores aren’t doing that old-fashioned thing that stores have been doing for generations: cash management. All decently run stores manage their cash very carefully. They give each checkout person a suitable amount of notes and coins at the start of each shift that will allow them to offer customers the right change. They then keep in reserve enough cash to top up each till when particular coins or notes run out. It’s a much more complicated business than most of us imagine but it’s one of the core skills that store managers have to learn if they want to be able to service their customers properly.

Or is it something more sinister? Is it perhaps the policy of some stores to just keep the money for themselves? But would it be worth it for them to keep customer’s change?

Assume that in a large store a customer enters, on average every 10 seconds over a 10-hour opening period and that the store is open 6½ days per week. Let’s then assume that 5% of customers are then short-changed by 5t. How much would that add up to?

P9 per day. Just over P3,000 per year.

It’s simply not worth it for the stores to have this as a policy. It’s certainly not worth the risk.

However there is another group that might benefit from it. The cashiers. The maths in this case suggests that if a cashier serves a customer every minute over an eight-hour shift and short-changes 5% of them each by 5t, the cashier will make a total of P1.20 each day. Again that’s a very small amount but I suspect that it’s a lot more important to the cashier than P9 is to the store each day. P9 to the store is nothing, but P1.20 to the cashier helps with the bus fare home.

One of the lessons I’ve learned in the last few decades is that the truth is almost always prosaic, not poetic. It’s almost always the least complicated explanation that is the best one. I don’t think there’s any conspiracy to steal our money. It’s far more likely that it’s slightly incompetent, ill-trained store managers not ordering enough of the right coins.

As always the solution is also the simplest one. That missing 5t coin might be insignificant to you but it is YOUR 5t coin, not theirs. Don’t leave without it.

The Voice - Consumer's Voice

They broke my broken TV!

I bought a TV and used it for 3 months and it stopped showing pictures. I then took it back to the shop as it was still under warranty. They later told me that it is water damage and it is not covered by warranty and gave a quotation of P8,000 to fix it. Since it was just too much, I decided to buy a new TV instead. I accepted that it was my fault, but when I went back to collect my TV, I found that the screen was broken/damaged. The shop assistant notified the branch manager who said he would have to investigate and come back to me the following week. He never did, and when I followed it up with him through telephone, he told me that he is still doing the investigation. I went to the shop to meet with him and learnt that he was on leave that day and met with his assistant. The assistant manager promised that he would communicate with the shop headquarters and would advise me on their intent. He never phoned and I kept on following up with them and it has been weeks now. Yesterday the branch manager phoned me, but still he was not telling me on their intention. He promised that he will discuss the issue with his assistant today and they would let me know.

I need your advise on this, my expectation is that since they have done the damage they should replace the TV with a new one and allow me to exchange it for something else as I already bought another TV. Would I be asking for too much?

This is complicated. If it’s true that you caused water damage to the TV then obviously you should be responsible for paying to fix that. However the store are obviously responsible for repairing any damage they caused to the TV even if that TV was already damaged. Then again this was a TV you presumably had decided to discard if you had already bought another TV to replace it. So I’m confused. Should the store repair the TV back to it’s previously broken state? In theory they should put the TV back to it’s water damaged but unbroken state. How could they possibly do that?

I’ll contact the store and see what they suggest should be done.

Who should I speak to?

[I’ve changed the names of everyone mentioned here.]

I bought a funeral policy in 2013 deducting P181.90 per month. The agent was Mr A who is stationed at Maun. Around February I told Mr A that I want to terminate my policy with effect from March 2015 he then advised me to right a letter which I wrote on the 24 February and faxed it to him and he confirmed to have received it. I was surprised to find that they have deducted money for the month of March 2015 after telling them that I am terminating. I called Mr A and informed him that they have deducted money he then advised me to go to the nearest office for refund. I then went to Francistown branch and I was assisted by Ms B who told me that my policy was not cancelled. She then asked me to write another letter that shows that I have written a letter before and also to request for refund. She told me that she will send my letter to Maun and told me that I will be assisted by Mr C. I called Mr C after they have deducted money for the month of April and he did not assist me until I called their headquarters where I was assisted by Mr D. Mr D advised me to call Mr E who is the manager for Maun branch. I called Mr E and he told me that I am talking to the wrong person I should go back and talk to Mr C since he is the right person who can assist me. Until today I have not been assisted and I am afraid that they will continue deducting money even after cancelling my policy.

Sorry, are they joking with you? Do they want you to speak to everyone up to Mr Z? This is ridiculous and it would be funny if it wasn’t so frustrating for you.

There are only two letters you need to know in this situation. M and D.

We’ll contact the MD of this company and see if he or she can’t get some decent service organized. It should be as simple as ABC.

Yet another fake university - Nelsonville "University"

Do I need to explain why I think that Nelsonville "University" is a bogus establishment?

Here's the conversation I had with one of their online advisors. I think it explains everything perfectly, don't you?

Rob Anderson: Hi, How can i assist you?
Rob Anderson: how are you?
[Me]: Good thanks
Rob Anderson: how can i help you?
[Me]: I need to get a Masters degree in Nursing to get a promotion. How long does it take?
Rob Anderson: just 15 working days to receive you the degree
[Me]: Wow. Do I need to sit any exams?
Rob Anderson: no its a life experience degree program
Rob Anderson: where you can get the degree on your working experience
[Me]: Any coursework?
Rob Anderson: process known as PLA(prior learning assesment)
Rob Anderson: no
Rob Anderson: PLA is based on your prior experience, previous academics, your achievements and expertise that you have in the field till date, we convert your working hours into the college credits and that?s how we will award you with the degree, without having you attend any courses, classes, test or examinations.PLA will be solely based on your prior knowledge and expertise in the field. This degree would be same as our normal academic degree that we give to our FTEP students who complete courses and classes; there is no difference in the documents, its acceptance and recognition.
[Me]: How much will this cost?
Rob Anderson: only $399 the complete fee
[Me]: So I just pay you $399 and I get a Masters degree in Nursing?
Rob Anderson: yes

It's obvious that Nelsonville "University" is a fake university that sells fake degrees to people who get fake appointments or fake promotions. The only genuine things that someone who gets a job or a promotion from buying such a certificate will see will be the genuine letter of dismissal and the genuine court case for obtaining by false pretence they'll experience.

Mmegi - Yet more scams

Scammers certainly aren’t going anywhere.

A few weeks ago a woman contacted me on Facebook and told me that a man had approached her on Facebook and a relationship had developed between them. She said:

“I have been communicating with someone named Luca Anders and he became my Facebook boyfriend. He said he is working in the UK and his contract is ending this month end. He took all his benefits from the company and he wants to come and settle with me in Botswana. He called me that he is coming with a flight which landed at Cape Town at 0930 this morning. Those that claim that they are at the airport called me asking if he is coming to me and I confirmed. Now they say he is carrying a lot of cash.

They say he should pay R10,000 for money laundering and now he says I should deposit the money and he’ll pay me back when he comes because they are now going to send him back and without that cash. Please check for me if its the truth. He says I should not tell many people coz he is carrying lots of money and he is fearing for his life. I’m in a fix. To deposit or not to or is this a scam?”

Of course this is a scam but it’s a clever one. The story about the guy arriving at Cape Town that very morning added a sense of urgency to the pressure she was under. The thought that her lover was in custody and might be kicked out of South Africa must have made her feel desperate.

Of course all they wanted was the R10,000. If she’d paid them the money you can be certain they would have asked for more and more money until either she finally realized it was a scam or she just ran out of money.

Another reader emailed us and asked:

“I write requesting for your help. I met this guy on the net and last week he said he bought me some things he couried them like yesterday and I received an email from Excel Express Couriers giving me my tracking code they asking me to pay R2800 for clearance at South Africa ..um not sure if I should make some payments...”

Same scam, different approach. There is a genuine courier company in the UK called Excel Couriers whose web site these scammers have copied, even including an online tracking database so that every victim can see that their package is apparently held up in customs somewhere. This particular woman gave me the tracking number they sent her and I checked it on the fake web site. It said:

“Parcel Presently In Amsterdam Heading To New Location. NOTE: Receiver Must Pay R2,785 As Custom Clearance Fees Before Delivery Will Be Made.”

All the same clues were there. The address this company gives is actually the address of a DHL depot in London, they only give a UK cellphone number, not a landline number and the address of the guy claiming to send her these goodies was a fake.

Then there was perhaps the most disturbing scam I’ve heard of in a long time.

The victim said:

“I am expecting goods from Florida,USA but today i received a call from the number +27 71 998 4950 and talked to a certain gentleman who introduced himself to me as James, an agent at the Johannesburg Customs office. The said James told me that my parcels arrived yesterday from Florida and are in Johannesburg Airport and asked me to pay the sum of R3220.00 as customs clearance charge for goods such as laptops so that they make sure the goods reach me by tomorrow. I asked him how i can make the payment but advised me to pay through Western Union and the payment should be forwarded to James Irvin Phiri, Address 25 Habicus Street Strand Cape Town 7140. Email: daniellink@post. Fax +27866006180. as per the message he sent to me. Now my question is, Johannesburg is not the final destinations for my parcel, they are just passing through why do i have to pay South African Customs office for clearance? is it the procedure or someone is trying to steal my money, if its the procedure why do i have to pay through western union?”

She’s asking some very sensible questions. Why would a customs official want payment using Western Union? Why would you pay to someone in Cape Town when they claim they’re in Johannesburg? Why would anyone in South Africa want payment for an item that isn’t going there and that is just passing through?

Of course the phone numbers and addresses are fake, as is the entire story.

Also I think it’s safe to assume that the guy claiming to send the package is part of the scam, don’t you?

Here’s the disturbing bit. She’s met him. In the flesh.

She told me:

“the person sending me the parcel is my boyfriend, he has being in South Africa but went back home some few weeks back for his family matters, i asked him to buy me something there and he definitely did and sent the parcel to me and now somebody wants to play tricks with me”

There are two possibilities. Either her boyfriend is genuine and his package has somehow been intercepted by scammers or he’s right at the centre of the scam. If it’s the latter then we have a scammer who has crossed the boundary and has formed a genuine, perhaps even physical relationship with his victim.

Is there nothing these scumbags won’t do to steal people’s money?

The Voice - Consumer's Voice

Is this institution real?

Please confirm if the Institution below exists: Northern Ireland Institute of Business and Technology (British). I received one application, which the candidate has qualified from that Institution. It was my first time to see such certificate thats why I contacted consumer watchdog.

The so-called Northern Ireland Institute of Business and Technology (British) never really existed other than being a web site that sold fake qualifications.

Despite it’s name this place had nothing to do with Northern Ireland and wasn’t British. They had no permanent presence anywhere in the UK and they weren’t a registered company there either. None of the "academic staff" they claimed to employ really existed and they claimed to have been accredited by an accreditation body that nobody recognized. In fact they operated from Malaysia, not the UK.

We first exposed this bogus establishment in 2009 and they weren’t happy at all when we told people the truth about them. Over the next few years they threatened us with legal action and even said they’d reported me to the FBI and Interpol (ignoring that fact that neither of these bodies has any jurisdiction over them or me). Needless to say we ignored their silly threats.

Their last email to me in 2011 included this threat:

“Our claim for damage on slandering and defaming on Northern Ireland Institute of Business and Technology (British) and its agent is going to be USD6 millions. You are urged to treat this matter as serious and removing all slanderous and defamation articles on NIIBT, unlawfully using the NIIBT logo, unlawfully interference of the internal affairs of NIIBT and its agent in your blogs, etc from the internet and wikipedia instantly.”

Guess what happened? Nothing. They couldn’t take action against us because all we’d done was reveal to the internet the truth: that they were a bogus establishment selling bogus qualifications.

The good news is that they appear not to exist any longer. Their web site has disappeared and I guess people aren’t buying their fake qualifications any more.

I salute you for taking the time to check your candidate’s qualifications and for being skeptical about their claims. More employers should check these things to avoid being defrauded by people claiming to have qualifications that aren’t real.

Finally I need to warn anyone who is considering buying a qualification from any establishment like this one. If you buy a degree from a fake establishment you are as criminal as they are. If you get a job or a promotion from an employer as a result of this “qualification” you can be charged with “obtaining by false pretence” and if found guilty you could end up in prison for seven years. Is it worth the risk?

Can I get a replacement?

Help me out here. I bought a smartphone and it gave me technical problem. I then took it back last week Tuesday since it was still under warranty so every time I went there to get it they are telling me the technician is working on it. Am I suppose to get a repaired phone or a new phone coz they cant fix it again?

Let’s begin with Section 13 (1) (a) of the Consumer protection Regulations. This says that a consumer is entitled to buy commodities or services that are “of merchantable quality”. The regulations says that this means products that are “fit for the purposes for which commodities of that kind are usually purchased, as it is reasonable to expect in light of the relevant circumstances”. In other words if you buy a cellphone it must be able to make phone calls, pick up texts and work in a fashion that most people would find acceptable. Put very simply, it should work.

Normally, when there’s a problem with something you’ve purchased, you're entitled to one of the three 'R's: a refund, replacement or a repair but in most circumstances it's up to the store to decide which of these they offer you. A store is entitled to try to repair an item, particularly if the problem is fairly minor. However if a store can't repair something within a reasonable time then I think it’s fair to demand a replacement or a refund.

I’ll be happy to contact the store on your behalf to see if they can’t do the decent thing.

First Issues on Store Security

If you missed the First Issues program on store security last week you can see it here.

Is there a worse way of buying than hire purchase?

If there’s a worse way of buying things than hire purchase I don’t know what it is.

The biggest single problem with hire purchase is simple and the clue is in the name: the word “hire”. When you hire a car, do you own it? No, the car hire firm owns it, you’re just borrowing it in return for a fee. It’s exactly the same when you buy a sofa, laptop or fridge on hire purchase. Even though you now “possess” the item you don’t own it, the store still does. Ownership only passes to you when you’ve made the final payment in your repayment plan, often two or more years after it was delivered to your house.

This one of the reasons why if there’s the slightest problem with your repayments the store can just come round and recover the item from you with no extra paperwork. It belongs to them, not you. What’s more when you signed the HP agreement you probably didn’t notice the clause in the agreement that said they can enter your property to recover your goods without a court order, but with the specific permission you granted them. It’s a licence to invade your home.

In theory the whole business is regulated by the Hire Purchase Act, a piece of law designed to formalize HP agreements and also to provide some protection to both the stores that sell on HP and those of us who are unlucky enough to sign their agreements. In yet another example of how forward-thinking our early legislators were, the Hire Purchase Act was passed in 1961, way before many of us (even me) were born. So there’s no excuse for stores or their lawyers not to know what it says.

You don’t need to read the entire Act but there are a few things it says that you should know, things that in principle could protect you if you get into trouble.

The agreement you sign must disclose the cash price of the item you’re buying. If you’ll be paying P4,000 over two years then the agreement must make it clear that the cash price is P2,000. In fact that’s probably what it really would be in a two-year agreement, buying on HP over two years usually costs about double the cash price.

It must also give a full description of the goods you’re buying, “sufficient to identify them”. It should include the model name of code number, it’s size, colour and anything else it takes to identify the goods. The reason for this is two-fold. Firstly it’s a protection for you in case the wrong goods are delivered. You have a piece of paper to prove they’ve delivered the wrong thing. However it’s there to protect the store. If they ever need to repossess the goods they can make sure they take the right thing.

The law also allows you to get regular statements of your account with the store that explain how much you’ve paid so far and how much you have left to pay. You can even get a copy of the original agreement if you lose your copy of the agreement. The store can’t keep you in ignorance.

On the other hand there is an often overlooked obligation that can get you in trouble. The law requires the buyer to tell the store every time the purchased goods change location. Every time you move house you MUST tell the store. Remember that the goods don’t belong to you yet. They belong to the store. The store has a right to know where the goods are at all times.

You do have some rights though. For instance you can, if you can afford it, terminate the agreement early. Section 14 (b) of the Act says that you can pay all of the remaining installments up front and it even says that you are entitled to a 5% per year discount on those payments. However that assumes you now have the cash you should have used in the first place rather than buying the item on HP. However it does mean that if you suddenly get some cash you can put it to a good cause rather than spending it on booze.

There’s another right you have that stores often neglect to tell you but this one only applies when things have already gone wrong. If you’ve defaulted on your payments and the goods have been repossessed you can still get them back, so long as you pay all the arrears within 21 days of the date the goods were repossessed. That might not be a long time but the advantage is tremendous. You’ll need to pay the remaining installments anyway so it’s surely better to have them in your house rather than someone else’s.

However there’s a major problem with the Act. Such a glaring problem that it almost certainly doesn’t apply to you.

None of the protections are real.

Section 2 (3) (a) of the Hire Purchase Act says that that Act shall “apply to agreements … under which the purchase price does not exceed P4000”.

There were times when P4,000 was a LOT of money. When this rule was set it was probably enough to buy a car but these days when you’re buying something on HP, it’s next to nothing. When I looked at a furniture store insert from a newspaper last weekend it contained sixty-two items that were available on hire purchase. Of those only three were for less than P4,000. The average price was almost exactly P10,000.

This Act is no longer worth the paper it’s written on.

When can we expect the same level of protection that the authors of this Act meant for us? When can we have the same protections that neighbouring countries offer their people?

It needs to be soon.

The Voice - Consumer's Voice

Is this university real?

This serves to find out if you are familiar with Atlantic International University. I am considering taking a degree course with them and I am not sure if they are a recognized institute. They say they are registered with Accrediting Commission International (ACI) and International Accrediting Organization (IAO), they are both international private accrediting agency.

Thank you.

Atlantic International University is a fake university. They even confess this on their web site. They say that their programs are not “are unique, non-traditional and not accredited by the U.S. Department of Education”.

So they’re not actually accredited. Even the agencies that they claim have accredited them, aren’t real accreditation agencies, they’re just as fake as AIU. They even admit this as well. They say that these bodies are “not regulated or approved by the US Department of Education”.

I found an education authority in the USA that said that any establishment “accredited by ACI … is either fake or substandard”.

Atlantic International University is a fake university accredited by a fake organization that sells fake degrees, it’s as simple as that. “Qualifications” you buy from AIU are worthless and won't be recognized in Botswana. You must also realize that if you ever got a job or a promotion using a fake degree like one from AIU you’d be a criminal. You’ll have “obtained by false pretences” and your employer will probably fire you immediately, call the cops and have you charged. You could end up in prison.

Finally there’s a strange thing. They claim to be based in Hawaii. So why do they call themselves "Atlantic International University"? Hawaii is in the Pacific Ocean, not the Atlantic. Don’t they teach geography?

Can they take the money?

I write requesting clarification on an issue concerning one of our financial institutions. If one stumbles into money in their bank account that they can't account for, what is the procedure for accountability? Who is to blame? Can it be transferred back without the knowledge of the account holder that has received it? As the account holder what are your rights as far as the last mentioned question is concerned? Can they do that? If one went to the extent of spending the money, what regulations are in place to ensure fairness in such a situation? And my golden question, in the event of money spent what are the likely outcomes?

There’s a very simple rule here. You can’t spend money that belongs to someone else. You simply can’t. If I visited your house and dropped some money on your floor would you be entitled to keep it and spend it? Of course not.

It’s exactly the same situation here. If the bank makes a mistake and deposits money into your account rather than mine you’re not allowed to spend it and the bank is entitled to reverse the transaction when they notice it.

Of course they shouldn’t disadvantage you because of this. They shouldn’t charge you for the transfer into your account or the one out of it, that’s their responsibility. The difficulty is what happens if you spend the money without noticing and when they take it back it takes you overdrawn. Again technically that’s your fault, not theirs, but I would expect the bank to be tolerant in that situation. Yes, you should have noticed that you were spending more than you should have had in your account but I would certainly expect them to be flexible.