Consumer Alert - "50/50 Crowdfunding"

Here comes another pyramid scheme, calling itself "50/50 Crowdfunding".

This is how they describe their business model.

They make absolutely no reference to any products on their web site, just that you recruit other people and make money.

One of their advocates on Facebook describes the process.

The first Week in business you need to do this and qualify to upgrade:

-Register for $29.00 (P325.00)

-be allocated two people

- make donations of $125.00 (P1,400.00) each making (2,800.00) to the two people allocated and thereafter earn as follows:

1. level $250.00 will earn you $750.00 (P8,400.00) in one week *(P1,400.00 Times 6 People in your Team)*
2. Upgrade to Level $500.00 will earn you $1,500.00 (P16,800.00) in one week *(P2,800.00 Times 6 people in your Team)* going with you from above
3. Upgrade to Level $1,000.00 will earn you $3,000.00 (P33,600.00) *(P5,600.00 Times 6 people coming from above)*
4. Upgrade to Level $2,000.00 earns you $6,000.00 (P67,200.00) *(P27,200.00 is kept) that is $1,000.00 times 6 people coming from above)*
5. Upgrade to Level $4,000.00 earns you $12,000.00 (134,800.00) *(This is $2,000.00 6 times by the people above)*

This comes to $23,250.00 in total giving you clean 🧽 clean 🧼

I contacted this recruiter and asked a simple question:

And then:

Out of their own mouths... A pyramid scheme. Please remember that our new Consumer Protection Act states that a:

“person shall not directly or indirectly promote, or knowingly join, enter or participate, or cause any other person to promote, join, enter or participate in… A pyramid scheme”

and that the penalty for doing so will be:

“a fine not exceeding P100,000 or to imprisonment for a term not exceeding five years, or to both.”

50/50 Crowdfunding won't make you any money, but it might cost you a lot and even your liberty.

Radio show notes - week beginning 17th December 2018

Source: Wikipedia

1. “Frontloading”

A consumer invested P42,000 in 2 education policies. He later defaulted on some premiums because he had resigned from his job to start own business. Given his new situation he decided to cancel the policies and attempted to withdraw the money he'd invested so far.

The surprise was how much was returned to him.

P1,440.

He was told that the reason was “the money was used for admin.”

He commented:

“Morally that is wrong. One would expect they should pay me some interest for the money I invested with them.”

This was an example of “front-loading”. Long-term investment products, such as education policies are meant to last for many years, maybe 10 or 20 years. But the agents and brokers selling these products don't want to wait that long to get their commission. If you read the small print you'll see that the admin expenses and commissions are often taken in the first year or two of the policy. It's only after a few years that your money starts to grow.

BUT, do consumers understand this? Did the agent or broker that sold them the policy explain this? Did the insurance company do enough to ensure that their customers understand?

2. Insurance vs investments

There is a lot of confusion about investments and insurance policies.

Investments and savings schemes are about putting money somewhere safe. With luck you might even earn some interest on the money you contribute but remember "front-loading".

Insurance is about transferring risk, or at least the financial cost of risk. Whether it's your vehicle, your house or its contents, your health or your life, an insurance policy will cover the cost of something bad happening.

3. CBN - a pyramid scheme
[A number of people asked us to repeat this warning, so here goes.]

(See also our press release about CBN here.)

“P100 can change your financial situation. CBN is a way to go. Join me today and let me take you through the journey of that financial change. You won't regret taking that decision. Drop your number now. Remember your P100 is a once off.”

Apparently you can join for just R100 and recruit 6 people, “You earn R10 per downline” and then get P60. And then so on, through several levels:

• Level 1 Worker
• Level 2 Supervisor
• Level 3 Manager
• Level 4 General Manager (at which you apparently get a laptop worth R4,000, groceries R2,000 and a Marketing allowance of R500.)
• Level 5 Assistant Director (at which you get a Sun City holiday)
• Level 6 Director (now you get a car worth R200,000)
• Level 7 Acting CEO (another car, this time worth R500k)
• Level 8 CEO (yet another car, now worth R1,200,000, a house valued at R2,500,000 along with furniture worth R500,000). 

CBN claim that:

“It’s simple to work with us: Recruitment only, no selling products, no products maintaining.”

Section 9 of the 2018 Consumer Protection Act defines a pyramid scheme as a scheme:

“where participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants”

It goes on to warn that:

“A person shall not directly or indirectly promote, or knowingly join, enter or participate, or cause any other person to promote, join, enter or participate in… A pyramid scheme”

and that:

“A person who participates in an arrangement, agreement, practice or scheme under subsection 2 commits an offence and shall be liable, upon conviction, to a fine not exceeding P100,000 or to imprisonment for a term not exceeding five years, or to both.”

CBN is a blatant pyramid scheme. Please don't risk your money, effort and time. And your liberty.

And some more. Some screenshots of conversations with people marketing CBN in Botswana.

4. The broken tablet

“I bought my son a tablet for P399 and its still under warranty. After two weeks my son tells me the screen broke and I decided to check with the store for repairs. They called me after few days and explained that they can help me provided I pay P300 for screen, I then told her that am not happy because the price is worth buying a new one. I am not impressed at all with this because I even pleaded with manager to say they can’t charge me almost the same amount as new tablet and I even offered to at list pay P200.”

Section 13 (1) (a) of the Consumer Protection Regulations requires suppliers to offer commodities and services that are "of merchantable quality". It doesn't say they must prevent you or your children from breaking things.

In this case the store hasn't done anything wrong. Your child broke the device and it's your responsibility to either pay for it to be fixed or to buy a new one.

The Voice - Consumer's Voice

Why won’t they fix it?

I bought my son a tablet for P399 and its still under warranty. Now after two weeks my son tells me the screen broke and I decided to check with the store for repairs. They said they don't repair broken screens, so I asked where I can get replacement screen and they said I should check one of the shops at the bus rank.
To cut the story short I went all over looking for the screen replacement and I failed to get one since July.

I decided to go back and I explained the above to the store where they also felt my concerns and struggles. They called me after few days and explained that they can help me provided I pay P300 for screen, I then told her that am not happy because the price is worth buying a new one.

She referred me to the manager who also said he can only help me by replacing the tablet with another one provided I pay P300 and that's an instruction he got from his superiors in South Africa. I am not impressed at all with this because I even pleaded with manager to say they can’t charge me almost the same amount as new tablet and I even offered to at list pay P200.

I now want my money back so that I can go and buy item which has spare parts around. I feel this is not right. We are been sold product which cannot be repaired any way in our country.

I’m sorry to hear about your problem.

Unfortunately, there is currently no right for a consumer to demand a refund. If a product is faulty a consumer can demand one of the three Rs: a refund, repair or replacement but it’s normally up to the store to decide which of these they choose to offer you. And that’s only when a product is faulty or if the item was mis-sold.

However, in your case, the product isn’t actually faulty. It was your son who accidentally damaged the screen of the device and they are therefore under no obligation to repair it, replace it or refund you.

I can understand your frustration about the difficulty in repairing the screen but there is no requirement on a company to repair a product damaged by the customer. I suspect that the offer of a discounted tablet might be the best option for you.

Why isn’t she covered?

I need help. Apparently my Grandma has been using a funeral plan and she is on retirement so she has been paying through hand delivery and defaulted for three months now she wanted to pay her arrears because she had no cash. Now they told her that her policy has been cancelled, mind you she has joined the policy since 2001 to date. Please help me.

Unfortunately, this is how insurance products work. You pay a monthly premium and in return the insurance company takes on the risk associated with the event you’re insurance against happening. It doesn’t matter whether the policy covers your vehicle, your house, your health or your life, the insurance company will pay the costs (or most of them) if something bad happens.

However, the small print of any insurance policy, such as your grandmother’s funeral plan, will contain a clause saying that if you default you won’t be covered. I haven’t seen this particular policy but it’s likely that cover stopped after your grandmother missed a payment or two. It doesn’t matter to the insurance provider how long she’s been with them, when she stopped paying, she stopped being covered.

It might be worth asking the insurance provider if your grandmother can pay all the premiums that she missed, maybe they can reinstate the policy? There’s no guarantee that they will but it might be worth a try.

If they say no, it might just be simplest for your grandmother to start a new funeral plan. There might be a waiting period but at least she’ll get some cover again. It might even be a good opportunity for her to shop around and get a better policy.

The Voice - Consumer's Voice

Where’s my video?

This photography company has really disappointed me and now throws a deaf ear. We had made an agreement to get wedding photos and a drone video from them. They promised within 4-6 weeks we would get our packages. 5 months later we are still waiting for the video. Their contract stated 25% of the full payment balance could be paid once we received everything but instead they had forced my mum to make full payment before receiving anything or else they would not continue making our photos. They don’t answer calls or respond to messages and give excuses and they have our money and we have no video.

When trying to reach them we heard from several brides that they had done the same thing to them. Some still waiting a year for their video. Or some whom have reported them. I just want to say I am highly disappointed that a seemingly “big” “professional “ business such as theirs has gone this route. I have been wasting my airtime and my time chasing them and now I am forced to take them to my lawyers. They would rather be so greedy and fill their pockets with our money than make their customers happy. I wish to warn some brides as I was not warned.

Here we go again. Yet another shady character ruining people’s weddings. I’ve mentioned this many times before but there seems to more than the usual proportion of crooks, liars and cheats exploiting people’s big day. It’s as if they don’t realize that weddings aren’t events like birthdays and Christmas parties that happen again next year. They’re meant to be once-in-a-lifetime events. Ok, maybe twice. They deserve a higher level of care, attention and performance.

I contacted your photographer, who will remain nameless for now, and he told me “We have delivered the photos but only left with the video. It will be delivered before Thursday. Thanks”.

Well, guess what? He lied. He’s now lied to both of us. The Thursday he referred to was LAST Thursday, not this week. You contacted me last weekend to say that he still hadn’t delivered the video footage so I think we need to escalate this issue. We could go to the authorities such as the Consumer Protection Unit, we could use the Small Claims Court or maybe we should use something far scarier? Something that is really likely to make this guy do what he should.

If he doesn’t deliver your video before the next edition of The Voice is published, we’ll name him and his company. Let’s see how he enjoys his reputation being examined by the entire country.

Is this a real loan?

Can you please help me here. Last month I applied for a loan of P50,000 with certain company called Happy Cash Loans in South Africa through online. Last week they replied me saying is approved and before giving or transferring the money they need administration fees of P3,000 from me paid to cover legal issues through Western Union. I just wanted to ask you whether this is good procedure. Thanks in advance for your response.

This is undoubtedly a scam. It’s not the first time we’ve reported on these loan scams and the clues are always the same. A company, usually claiming to be in South Africa, but often either in France or in French-speaking Africa (which might give a clue about where they’re based) contacts a potential victim either directly by email or more often by advertising on Facebook. They’ll offer loans ranging from small amounts to millions of dollars, all at incredibly low interest rates and they often say to people with poor credit histories. Like in your case, they offer these loans without any serious background checks on the recipient.

However, the biggest clue is that they want your money in advance. Why would a lender want money from you before they lend you the money? Have you ever heard of a legitimate bank doing that? Obviously there are costs associated with any loan but real lenders absorb these costs, and you pay them back over the period of the loan. You don’t pay them upfront. And you certainly don’t pay anything using the scammer’s best friend, Western Union.

This is all about the fee they want from you in advance. That’s why these scams are called “advance fee” scams. There’s no loan here at all, it’s all about that fee. If you pay it they’ll just keep on inventing more and more payments you’ll need to make until you either realise you’re being scammed or you run out of money. Please don’t fall for it. Instead spread the word to everyone you know that these scammers are out there and this is how they operate.

Radio show notes - week beginning 3rd December 2018

Source: Wikipedia

1. Who owns the car?

“I bought a Mercedes Benz on the 8th of October from a garage in Mogoditshane. After I paid they pretended that the blue book was not in the office and the sales man who assisted me said he was going to fetch it at his house. I waited till it was dark but ended up going home. Until now I don't have the papers for the car only the receipt. Please how do I get help on this matter?”

Who actually owns this car? Did the dealer ever have the blue book? Did he ever actually  own the vehicle that he sold? Is it possible that the previous owner is still the registered owner? Without the blue book, nothing can be certain.

My suggestion? Cancel the deal in writing. Quote S15 (1) (e) of the Consumer Protection Regulations which says that when a deal is properly cancelled the seller must “promptly restore” any money paid up front. Then contact Consumer Protection Unit and complain to them. Then call the Police and mentioned Section 308 of the Penal Code (“Obtaining by false pretence”) and then Section 310 (“Cheating”). See if that has any effect.

2. CBN - a pyramid scheme
(See also our press release about CBN here.)

“P100 can change your financial situation. CBN is a way to go. Join me today and let me take you through the journey of that financial change. You won't regret taking that decision. Drop your number now. Remember your P100 is a once off.”

Apparently you can join for just R100 and recruit 6 people, “You earn R10 per downline” and then get P60. And then so on, through several levels:

• Level 1 Worker
• Level 2 Supervisor
• Level 3 Manager
• Level 4 General Manager (at which you apparently get a laptop worth R4,000, groceries R2,000 and a Marketing allowance of R500.)
• Level 5 Assistant Director (at which you get a Sun City holiday)
• Level 6 Director (now you get a car worth R200,000)
• Level 7 Acting CEO (another car, this time worth R500k)
• Level 8 CEO (yet another car, now worth R1,200,000, a house valued at R2,500,000 along with furniture worth R500,000). 

CBN claim that:

“It’s simple to work with us: Recruitment only, no selling products, no products maintaining.”

Section 9 of the 2018 Consumer Protection Act defines a pyramid scheme as a scheme:

“where participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants”

It goes on to warn that:

“A person shall not directly or indirectly promote, or knowingly join, enter or participate, or cause any other person to promote, join, enter or participate in… A pyramid scheme”

and that:

“A person who participates in an arrangement, agreement, practice or scheme under subsection 2 commits an offence and shall be liable, upon conviction, to a fine not exceeding P100,000 or to imprisonment for a term not exceeding five years, or to both.”

CBN is a blatant pyramid scheme. Please don't risk your money, effort and time. And your liberty.

And some more. Some screenshots of conversations with people marketing CBN in Botswana.

3. Déjà vu?

“My 72 year old mother went to a general dealer to buy groceries, while at the shop she tripped and fell. When she fell she had a bottle of tomato sauce in her hand which broke and severely cut her between the thumb and the second finger injuring 2 arteries. She almost bled to death. I called the owner of the shop who said will come and check us. My mother had 24 stitches to close the wound, was admitted for 4 hrs, now discharged. Other customers said this happened before. What are her rights?”

This is like deja vu all over again. Consumer Watchdog first big issue was very similar to this. Fifteen years ago we heard a similar story of a customer injured in a store. The store failed to respond adequately, we reported this, then received a threat of legal action (which we laughed at), kept pestering them and eventually, after they conceded they had lost significant levels of business because of their poor response and the public backlash, they settled.

It's very simple. It's the responsibility of store, restaurant, hotel, bank, insurance company, radio station, whoever, the protect the safety o their customers.

So maybe the store has a public liability insurance policy and they can claim against that? If yes, the matter is simple. If not, they need to start saving for the penalty a court will impose. Maybe they should settle before it gets to that stage?

We contacted various major store chains (not connected to this incident) to get their reactions. They all told us that they have public liability insurance policies. If an incident happens, they fill in forms, the customer provides medical documents, makes an official statement, a claim is submitted and a payment is made.

BUT it seems that public liability insurances NOT mandatory. This needs to change. Will contact MITI and urge them to intervene. Some might argue it'll be too expensive but I suspect not as expensive as not having it. How much will it cost if a customer is seriously injured, maybe even dies?A lot more than a small monthly premium.

4. Is this defamation?

“My brother and my mother went to a store to buy some few groceries. My brother then wrote his phone numbers to enter a competition that is running in their stores. After leaving the store he was called back that he won some groceries and as he was home with the baby cousin, he went with him to the store.

Upon arrival he was thrown into the office after people threw insults at him that he is a thief. He later learned that there was a man who went back to the store and accused him of stealing his wallet. He was not allowed to do anything or attend to the baby cousin, and he was promised a good beating because he stole. He managed to call me during that of which I asked my husband to rush there. When he arrived he found him still in a good state and with the police already there. After looking at the store cameras he was cleared that he did not steal the wallet as he did not even come close to the man who reported him.

Ever since then my brother is stressed and we would like to know which steps he can take for them to pay him back for defamation of character or something along those lines because I strongly believe the store manager should have checked out the store cameras before even calling him.”

Let's remind ourselves of the case of Molefe vs Scorpion Security in 2013. A lady had her bags searched by a security guard as she left a supermarket without her consent. The humiliation of being accosted in public and being accused of being a criminal angered her so much that she took the security company to court.

And she won.

In his ruling, the judge said:

“I find that indeed the Defendants searched the Plantiff without her consent and it was unlawful. On the issue of damages, considering the humiliation embarrassment and impairment of her dignity as an honest member of society I have considered that P60,000 would be sufficient for her dented image in society.”

Those of us who are not criminals have a right to our "dignity as an honest member of society". If this store wants to avoid a ruling against them, they need to start calculating how much they should pay the guy to keep this out of court.

The Voice - Consumer's Voice

Can’t I get my money back?

On the 23rd November I made a booking on booking.com at a lodge in Kasane. I was told to provide my credit card details and that the money will be deducted upon check in. My check in date is scheduled for 21st December 2018 and check out 25th December. The money P6,144 was deducted on 26th November instead.

I then spoke to a tour guide who advised me that the lodge has no TVs in the rooms. I then called the hotel only to find out that it is true and I was booked in a twin room and not a family room as I had thought. I cancelled the booking and was have been told that the money is non-refundable.

I am aggrieved because even if the room was to get occupancy I am still not to get refunded. I will be travelling with small children and would therefore need a room with at least a fridge and TV. I have found alternative accommodation and really want my refund.

Please may your esteemed office assist me in this matter.

Unfortunately, this isn’t the first time I’ve heard of a situation like this. Even more unfortunately, I don’t have any good news for you.

Booking.com and other travel-related web sites are remarkably useful and you can find amazing deals there and from alternatives using apps like Airbnb. I’ve used both and they’re very useful. When you get to your destination you can then use apps like Uber to make getting around so much easier. And much cheaper. Technology has made travelling a lot easier.

However, despite all the benefits of technology, it doesn’t mean we can ignore the small print when we buy something. In fact, the technology often makes these things easier to see. I checked the listing for the lodge you booked and it was very clear that there was no TV in the rooms and that a fridge wasn’t there either.

What’s more, the listing also described their cancellation policy quite clearly. This says that if you cancel less than 29 days before your check-in date then no refund is payable. You only booked the accommodation 28 days before check-in so they’re not obliged to refund you anything.

The lesson is that the small print always matters and you need to read and understand every little bit of it very clearly before committing yourself.

Must we pay?

We had our son at a private primary school. Last term we went to inform the school that we want to remove the child from school but we were told by the Admin that we can’t do it now even though we have paid the full amount for the third term. They told us we can do that beginning of 2019. During the collections of reports we informed the teacher that we want to remove the child from school but we were told it is not possible but in 2019 we can take the child. We told the class teacher that we wanted to shift him but since we paid in full they will not refund us.

Our challenge is that this Tuesday I went to school to collect the transfer card I was told to write a letter and state why. They told me the Managing Director says they want us to pay a full term school fees because we didn’t give them notice. Our argument is that we came to school and inform them. We were also advising them to look at their camera and they will see us. We are just told that we can’t be helped that’s all.

Giving a term’s notice is completely normal practice with private schools. If you check the terms and conditions in the contract you signed when you first enrolled your child at the school you’ll probably find a clause stating this.

What’s also normal is that this must be done in writing. There’s a principle that states that once an agreement is in writing, that writing is the only thing that matters. Subsequent verbal agreements, conversations over the phone and even face-to-face don’t have any value. Only what’s in writing matters.

I suggest you write the school a letter giving them notice but starting with the words “As we stated to you on [the relevant date], we are giving notice…”. Stress that the notice was given on that date and let’s see if that works. If that doesn’t work, let us know.

Consumer Alert - CBN (“Charity Begins Nathi”)

PRESS RELEASE
FOR IMMEDIATE RELEASE

4th December 2018

Consumer Alert: CBN (“Charity Begins Nathi”)

Consumer Watchdog would like to alert consumers about a pyramid scheme calling itself CBN or “Charity Begins Nathi” currently trying to recruit victims in Botswana.

The people promoting CBN claim that for a single joining fee of P100, and then by recruiting others to join the scheme, participants can eventually earn a car worth R1.2million, a house worth R2.5 million and a range of other benefits.

CBN explain that the only activities necessary to achieve these things are “Recruitment only”, “No selling products” and “Simply recruit them to join under you, and you will be making money.”

Section 9 of the Consumer Protection Act of 2018 defines a pyramid scheme as a scheme:

“where participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants”. 

CBN clearly satisfies that definition, admitting that there are no products involved and that money is made solely by recruiting other people into the scheme.

CBN is obviously a pyramid scheme. The new Consumer Protection Act states that a:

“person shall not directly or indirectly promote, or knowingly join, enter or participate, or cause any other person to promote, join, enter or participate in… A pyramid scheme”

and that the penalty for doing so will be:

“a fine not exceeding P100,000 or to imprisonment for a term not exceeding five years, or to both.”

Consumer Watchdog urges people not to fall victim to this illegal pyramid scheme and to alert the authorities if they are approached by any person promoting it.

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.

The Voice - Consumer's Voice

Have they cleared his record?

My brother bought a fridge from a furniture store in 2014. In 2016 he cleared the debt and they didn't give him a clearance letter also him he didn't ask for it because he didn't know the clearance form. 3 months back he went to the bank to borrow some money but the bank told him that his name is in the ITC system showing that he still owes the furniture store. So he checked them where he cleared and they told him that it was a mistake so they took his details and said they will email them at ITC so that he can be cancelled on the system, and they told him to check after 2 weeks. After that period he checked and he found that his name is still in the system. It’s about 4 months now checking but no difference and his name still in the system. What should he do?

He should rely on his sister to contact us!

In normal circumstances your brother’s record would have automatically been updated to show that he finished paying the debt. He wouldn’t need a clearance letter from store because the bank would have seen that he finished repaying the debt normally. That usually happens within 30 days of the final repayment.

But normal isn’t always normal. In this case clearly something went badly wrong, his record wasn’t updated at all and it still showed him as owing the money. Luckily, when we contacted the store they immediately realized their mistake and promised to fix it. Also, because the Regional Manager of the chain of stores is a good guy he’s going to send you a voucher to reinforce his apology!

Where’s my timber?

Good Day Mr Harriman. In 2013 I bought some building material from a supplier in Maun. They delivered everything except some timber that I asked them to keep until such a time I was ready to roof. This they agreed too. The following month I went to them as I had lost my invoice, and the manager then advised I keep searching for an invoice as they need that invoice to see what was left for me to collect. I been looking for that invoice Mr Harriman and its nowhere to be found. I keep going back every year ever since, just to check maybe they have found something in old records, but I keep getting the same story they need an invoice. Please assist me Mr H. If they did proper accounts and audits, and stock taking this information should be there in their records. This was about P5,000 of timber and other stuff for roofing. Please help me at least get my refund.

This could be tricky. Firstly, it’s been a long time since you purchased the items and I’m not sure that it’s reasonable to expect a supplier to wait that long for you to pick up the goods you bought. If you think about it, the prices have presumably increased in the last five years and something you bought for P5,000 in 2013 would now probably cost almost P6,000. The supplier is losing out by supplying the goods at the price you paid all that time ago.

Also, it’s fairly normal practice for companies to require you to keep receipts for things like this if you’re going to come back much later to collect things. Yes, their computerised billing system should hold records of the purchases made in the past but who knows if they were even using the same system five years ago? Maybe they didn’t even have a computerised billing system all that time ago?

Here’s a tip that everyone should follow. Whenever you get a receipt that you think is important, take a photo of it on your phone and email either it to yourself or a relative or store it online in your cloud storage of choice. There’s no reason not to these days because cloud storage from companies like Google and Apple is free. The main reason for this is that it’s very easy to misplace receipts and as you’ve probably seen, some receipts fade after a few months. Even if you carefully store receipts you can go back to them a year later and find nothing more than blank pieces of paper.

I suggest you go back to the supplier and ask them very nicely if they can’t search through their files to find a record of your purchase. However, be prepared for them not to be able to do so, or to say that you’ll need to top up the purchase price. Let me know what they say? If necessary we’ll encourage them to be helpful.

The Voice - Consumer's Voice

Who owns the car?

I bought a Mercedes Benz on the 8th of October from a garage in Mogoditshane. After I paid they pretended that the blue book was not in the office and the sales man who assisted me said he was going to fetch it at his house. I waited till it was dark but ended up going home. Until now I don't have the papers for the car only the receipt. Please how do I get help on this matter?

I think the most important question here is who actually owns this car. Clearly you don’t. Yes, you’ve paid the dealer the purchase price but he hasn’t transferred ownership of the vehicle to you using the normal, official way of doing so, by updating the vehicle registration document, the so-called blue book (No, I don’t know why it’s called that either.)

r).

The obvious question to now ask is if they can’t transfer ownership to you, was ownership ever transferred to them? Do they actually own the vehicle they tried to sell you? Without that blue book, I don’t think you can be certain of that.

Rather than wait any longer, I suggest that you escalate this issue. Sent them a message, either a letter, a fax, an email or even a WhatsApp message, any message that shows the date of delivery, saying that as they can’t transfer ownership of the vehicle to you, you are cancelling the deal and as required by Section 15 (1) (e) of the Consumer Protection Regulations 2001, they must now “promptly” restore to you the money you paid them. Tell them that if they don’t do so within seven days you will be approaching both the Consumer Protection Unit and the Police to lay a charge of “Obtaining by false pretence” against them. See if that works!

Where’s the builder?

On June 2018 my husband and I contracted someone to build us a house. Our agreement was that he will complete the house from foundation to the very last job but after plumbing he disappeared without a say, we tried to contact him but he kept on saying he will come but never did. We made him aware that we are not satisfied since taps were leaking and plastering was coming off. One night he even tried to steal some of the material we bought. We gave him deposit for ceiling but he left it incomplete.

There’s the sympathetic way to deal with this and there’s the less than sympathetic approach. The sympathetic approach involves sending him more polite, calm messages asking him very nicely to complete the job he was paid to do. You don’t say whether you had a written contract with him but you can certainly remind him of all the things he was supposed to do that he’s either failed to do, or failed to do adequately. You can then wait to see if he responds positively. Don’t hold your breath.

The less than sympathetic approach involves visiting your local Police station and laying a charge of theft against him. Give the cops all the background, the names and dates, everything you have and tell them about when he tried to steal the material you’d bought. If they argue, saying that this is a civil matter (which it mostly is) remind them that the theft part is not civil, it’s a crime and they should investigate it.

Let me know which approach you adopt (you can guess the one I prefer) and whether it works or not!

Radio show notes - week beginning 12th November 2018

Source: Wikipedia

The Bitcoin edition

Given the level of interest, the constant flow of questions and people seeking advice, we were asked to comment once more on the issue that still obsesses so many people:

Bitcoin

What is it? Is it safe? Is it genuine? Is it a good investment?

The "sextortion" scam

Let's start with an issue that came to us the day before we spoke about Bitcoin on DumaFM.

A consumer received the following email:

"I know [removed] is one of your passwords. I installed malware on a pornography web site and you visited this web site. While you were watching video clips, your browser started working as a Remote control Desktop that has a keylogger which gave me access to your display screen as well as cam. Right after that, my software collected your entire contacts. Next I created a double-screen video. 1st part displays the video you were viewing, and 2nd part displays the recording of your web cam.
You do have 2 solutions. 1st alternative is to ignore this message. in that case, I will send out your very own tape to all of your personal contacts and then consider the embarrassment that you receive. or should you be in a loving relationship, how it would affect? Next solution would be to pay me $7000. And I will quickly eliminate your video footage. You will carry on with your daily routine like this never happened and you will not hear back again from me. You'll make the payment by Bitcoin in 2 days."

The consumer asked "Is this real?"

The answer is no, it's not a genuine threat. Although the technology to do all these things exists, that doesn't mean they've been used on this occasion. The clues are simple. If they've hacked your computer, surely they'd know your name? Surely they could be a bit more specific? Surely a real hacker would include a screenshot of you being naughty to prove their claim?

This is just a case of what they call "sextortion". If you receive this email, and we've received it several times, just delete it and don't panic.

But the interesting issue is that these scammers wanted payment using Bitcoin. Why would they want that?

It's a cryptocurrency

Bitcoin is perhaps the best know example of a cryptocurrency, defined by Wikipedia as:

"a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets"

Bitcoin and the other cryptocurrencies are media of exchange, just like any other currency such as the Pula, Rand, US dollar or Euro except that they're not physical, You can't hold Bitcoin notes or coins because there aren't any. Bitcoin is virtual, it's "out there", not in one place.

The blockchain

Perhaps more interesting that Bitcoin is the technology that underpins it, the blockchain and the distributed ledger. Instead of records of transaction being held in a single, central ledger like your bank might have, the ledger for Blockchain is everywhere. That means several things. It's great if you want to keep your transactions secret but it also means that cryptocurrencies like Bitcoin are entirely unregulated. In December  2013 the European Banking Authority warned consumers that:

"No specific regulatory protections exist that would cover you for losses if a platform that exchanges or holds your virtual currencies fails or goes out of business."

If Bitcoin collapses or someone steals your Bitcoins, you're screwed. Nobody will listen to your complaint, you're on your own. And that has happened several times.

An investment?

Is it a good investment? No, Bitcoin is not an investment, it's certainly not a good one.

This graph shows the value of one Bitcoin over the last 18 months. Does this look like a good investment to you? Or does it look like an economic bubble that burst?

Source: Coindesk

Why would you "invest" in something that chaotic?

Andrew Bailey, Chief Executive of the UK's Financial Conduct Authority, told the BBC that:

"If you want to invest in Bitcoin, be prepared to lose all your money."

The future?

More recently, the economist Nouriel Roubini said this about blockchain technologies: 

"No serious institution would ever allow its transactions to be verified by an anonymous cartel operating from the world’s authoritarian kleptocracies" … “a small group of companies – mostly located in Russia, Georgia, and China – control between two-thirds and three-quarters of all crypto-mining activity”

So...

Bitcoin and the other cryptocurrencies are fascinating. The technology may well offer us amazing new opportunities to do many things but for now? Be careful.

The Voice - Consumer's Voice

Can I afford to cancel?

Please help if this is reasonable. I joined a gym in Gaborone and signed a two year contract. Now I have moved to Palapye on a new job where they have no facilities. They say in their contract that when you cancel you have to pay a reasonable cancelation fee. When I checked them they say I have to pay 40% of the balance which is P1,400. Mind you if it happens that no payment are made to them by the 31st of every month they block the person, you will have no access to their facilities. So why should I pay them? Thank you.

The simple answer is a simple one. If you signed it, that’s what happens.

Gyms vary. Some have monthly membership schemes and if you can’t attend or simply change your mind the worst that can happen is that you lose the month’s membership fee that you paid in advance.

Others, like yours, work differently. They have yearly or even two-yearly membership schemes that you can’t just walk away from. One that I looked at recently had a clause in its Terms and Conditions which said that if you “wish to cancel your membership before the expiry of your Commitment Period, then you must give us 20 business days’ written notice of termination and pay a reasonable cancellation fee plus any arrears”.

I don’t think there’s anything unreasonable about that. In theory. Yes, it’s fair for them to demand we give them a month’s notice and yes, they were planning on having our monthly member ship fees for the duration of the “Commitment Period” so it’s reasonable for them to demand the cancellation fee we agreed when we sign their membership fee.

However, 40%? Really? I know what the word “reasonable” means and I’m sure this isn’t that. Clearly this is a technique that the gym uses to prevent people from leaving. I suppose your decision has to be a practical one. You now longer live in the same city so there’s no way you can use their services any longer. Paying the cancellation fee might be the best thing to do. That’s if you believe they’re really likely to chase you for the money…

Where’s my refund?

Two weeks back I opened up an account with a builders merchants and deposited cash amounting to P20,000 into this account with the understanding that I will use this money to buy materials equalling that amount.

Last week, I started with construction and went to the shop to start collecting materials. I managed to purchase cement but couldn’t get the rest of what I needed as I was told that they were out of stock. I went back for the cement but they didn’t have transport available for delivering. Two days later I went back and still I was told the same stories, I complained and it was a back and forth affair with no conclusion. I then requested my account be closed and I be refunded my cash.

I was told to write a letter stating my request and email, which I did but never got a response. Later I received a call from one of the management saying that the cement I was waiting for was delivered at last. I however insisted the account be closed and a refund be made after deduction of the cement costs. I was told I would be given feedback that day but I am still awaiting my refund or feedback whatsoever, I keep getting the same response. I have sent mails, messages and calls and I’m still yet to get help or any valid or logical response as to why I still haven’t been refunded or helped. What can I do?

It’s time to put things in writing and to assert your consumer rights. Section 15 (1) (e) of the Consumer Protection Regulations says that when a deal is cancelled, like you’ve done, the supplier must “promptly restore” to the customer any deposit that was made. I suggest that you write them a letter or email explaining that you are cancelling the agreement you had and making it very clear that you understand your rights. It’s up to you to decide what “promptly” might mean but what about something like 5 working days? There’s no reason why a large, successful builders merchant like this one can’t make that happen.

Radio show notes - week beginning 5th November 2018

Source: Wikipedia

1. Should they compensate me?

“I bought some food in a store which I later found to have gone bad after a bite or two. I took the item back and was told by the store that indeed it had gone bad. They replaced it with on OK one and said because they didn't make me pay for it, they had compensated me. I did not feel satisfied considering that I had first been thrown from pillar to post before seeing the manager who also said the same thing. Also my time spent in going back to the store. I just wanted to ask from you, is there compensation that I should have received in that situation or an apology is as far as it can get?

Various laws and regulations apply here. The Food Control Regulations, Public Health Regulations and the Consumer Protection Regulations, in particular Section 13 (1) (a) which requires a supplier to offers commodities and service that are of “merchantable quality”. Clearly this food was not that.

The general rule is that when something is wrong with an item you're entitled to one of the three Rs: a refund, repair or replacement. In this case you got a replacement so in theory they've done all they need to do. However, this is actually more serious. This is a food safety issue. People die because of poor food hygiene. I think you deserve slightly more than just a replacement. I think you deserve a sincere apology, an explanation of what went wrong and some assurance that it won't happen again. I don't think that's too much to ask.

2. Where are the photos?

“We paid a local photography company for wedding coverage last year around June-July. The wedding was held in October and its been over year now still waiting for our package. We paid them about P13,400. We have followed up and followed up to this day but they are tossing us from pillar to pillar, story after story, they are not taking our calls anymore, they only respond once in a while through WhatsApp. We didn't sign any agreement with them because we had assigned a family friend who is a friend to the photographers to handle the photography part but we have proof of payment. We used bank transfer to pay them the total charge once off. The family friend has tried to intervene but to no avail. Kindly advise.”

What is it with the wedding industry. Why do they have so many crooks and incompetents?

The good news is that when we contacted this photographer he responded with: “I’m working on their package, supposed to be done by the end of the coming week.”

And he did.

3. Ponzi Scheme Alert: Amazon Web Coin

A member of our Facebook group got in touch to report that he received a message saying:

“Am called Dr Ronnie Gitta from Uganda. Am coming to your country”

He told us that:

“a day after introductions, he even wanted me to already be bringing other people his way and I don't even know anything about his product/ service. Very shady indeed.”

Here are some quotes from their web site:

“Get maximum benefits from cryptocurrency investments”.
“Daily profit accruals range from 3% to 8% depending on the investment package chosen.”
“Basic trader” “$20-$500” “8% daily for 20 days. 160% total return”
“Elite trader” “$20,000-$50,000” “3% daily for 100 days” “300% total return”
“Referral program - tell your friends, relatives or colleagues about the company. If your information is appealing to them, and they become our investors, you will be paid a referral commission! You can go further to build your own team, attracting new investors because we have made a special four-level program of affiliate rewards.”

This is a Ponzi scheme. All the usual clues are there. They promise miraculous interest rates with no indication of how they can be achieved. There is no explanation of where the growth in money comes from. It's all unbelievable. There are also some obvious clues, including this:

“Your deposit runs forever and you will never get it back.”

There are other clues. Their domain was only registered on 27th September this year. Although they claim that “Amazon Web Coin was officially incorporated in August 2016 under registration number 10351681” in the United Kingdom they also say that they're registered in Hong Kong. I checked and the UK companies register says the company was “Dissolved on 30 January 2018”.

Amazon Web Coin is a Ponzi scheme and everyone is warned to avoid it!

4. Managing debts. Or not managing them.

“I want to know how this thing of sending names of debtors to ICT works. I’m owing a cash loan and they sent my name to ICT. Now they are starting to take legal actions on me. The problem is that they have blocked me so I can’t have even a short loan to clear them. Is it not double punishment? Is that how it has to be?”

Yes, that's exactly how it works.

Firstly, creditors (the people we owe money) are entitled to send debt collectors and attorneys after us to collect their money. Wouldn’t you do the same if the situation was reversed?

Secondly, creditors are entitled to register our debts with credit reference bureaux. Their databases hold full financial records, both good and bad. These records allow other lenders to make sensible judgments about whether they should lend us money based on our previous history.

In this vase the customer has a history of defaulting. Why would another lender trust him?

We've put him in touch with a debt counsellor who should be able to help him sort out his finances.

5. Plastic bags. Again.

Are they banned? They were meant to be banned on 1st November but the Powers-That-Be changed their minds. So they're not banned yet. BUT they will be, sooner or later.

And the other issues. The so-called “Plastic bag levy”? Did it ever exist?

No.

What happened was that a compulsory standard for plastic bags ("FDS 186:2016, Plastic carrier bags and flat bags — Specification") was introduced but the Botswana Bureau of Standards. This meant that stores were then mean to offer us higher-quality plastic carrier bags that cost the stores more money. They just passed the cost on to you an me.

But be warned. Plastic bags will be banned along with plastic bottles and straws, sooner or later. Get ready now.

The Voice - Consumer's Voice

Did the broker claim my money?

I had a funeral policy for my mother from 2008 up until 2016. I defaulted and the service provider, the insurance broker told me that they were cancelling it. That was fair enough. My mother then passed away last September and I heard that the broker claimed the money on my behalf without my knowledge? Is it possible?

Firstly, please accept my condolences on the loss of your mother.

This is suspicious but I suspect unlikely. Firstly, it’s important to understand that there’s a big difference between an insurance broker, who works for you to find an insurance policy that best meets your needs and the insurance company that actually provides the policy. A good broker can be incredibly useful. They have the expertise that most of us lack in understanding all the small print, the terms and conditions, the exclusions and complicated language only spoken by insurance experts. They can advise you on the best product to choose.

However, sometimes brokers go bad. You only have to read the newspapers to see occasional notices from NBFIRA, the Non-Bank Financial Institutions Regulatory Authority, the agency that regulates the insurance industry, saying that they’ve closed an insurance broker and warning the public not to do business with them.

For example, we’ve heard of several cases where brokers have taken premiums from customers but neglected to pass the money on to the insurance company. This can happen for years and the customer only finds out when something unfortunate happens, they make a claim against the policy and the insurance company tells them that they cancelled the policy ages ago. That’s when they discover that the broker spent the money on beer, hoping that they’d never claim and discover the broker’s crime.

However, this is a first for me. I’ve never heard of a broker submitting a claim on a customer’s behalf and keeping the payout for themselves. It sounds unlikely but I’ll contact the insurance company for you. If you’re convinced it’s true, you should also contact NBFIRA and ask them to investigate. I know that the people there will be keen to investigate!

I can’t get a loan to pay off my debts!

I have a question here, I want to know how this thing of sending names of debtors to ICT works. I’m owing a cash loan and they sent my name to ICT. Now they are starting to take legal actions on me. The problem is that they have blocked me so I can’t have even a short loan to clear them. Is it not double punishment? Is that how it has to be?

Please don’t think I’m being rude. You’ll need to forgive me for speaking plainly.

This is how things work. If you fall into debt, as you did with this cash loan company, like any other creditor they’re entitled to take legal action against you to recover their money. I’m sure you would do the same if the situation was reversed and it was them that owed you money, wouldn’t you?

Separately from the debt collection, like any other company to which you owe money, they’re entitled to register that debt with a credit reference bureau like TransUnion (the newer name for ITC). They’ll record that you owe them money so that other potential lenders can make an informed judgment on whether you’re likely to be a good payer or a bad one. While that debt is outstanding, other lenders can see that you still owe another company money and they are entitled to judge what risk you pose to them based on that information. Again, reverse the situation. If I approached you and asked to borrow some of your hard-earned money and you discovered that I already owed your friend lots of money and had failed to pay her back, wouldn’t you think twice before giving me your cash? My history of not paying my debts would make you think twice about how likely I would be to repay you, surely?

That’s the situation you’re in. Your history of not paying a debt has made other lenders unlikely to lend to you. Can you really blame them for being cautious? I suggest that you concentrate on repaying the debt to the cash loan company and then see if you can get your finances back to normal. If you like I can also put you in touch with a reputable debt counsellor who can help you do this.

The Voice - Consumer's Voice

Where are my photos?

Good day Mr Harriman. I'm kindly seeking your advice. We paid a local photography company for wedding coverage last year around June-July. The wedding was held on October 7th 2017 and its been over year now still waiting for our package. We paid them about P13,400. We have followed up and followed up to this day but they are tossing us from pillar to pillar, story after story, they are not taking our calls anymore, they only respond once in a while through WhatsApp.

We didn't sign any agreement with them because we had assigned a family friend who is a friend to the photographers to handle the photography part but we have proof of payment. We used bank transfer to pay them the total charge once off. The family friend has tried to intervene but to no avail. Kindly advise.

I know I’ve said this before but what is it with the wedding industry? All industries have a proportion of players who are crooks, shady or dishonest but when it comes to the wedding trade, they seem to have much more than their fair share. Every week, without fail, we hear a story like yours, sometimes about photographers, other times venue hosts, caterers, suppliers of furniture who have badly let a customer down.

Don’t they understand that weddings are meant to be special days, days that aren’t easily repeated? Don’t they understand that a higher level of service and reliability is needed? Clearly some of them don’t.

I suggest that you write the photographer a letter saying that he has 14 days either to give you the photos or to give you your money back in full. Make it perfectly clear to him that if he fails to do either you’ll immediately take legal action against him to recover your money.

Also, please give me his details and I’ll see if we can apply some pressure.

Last minute update. I contacted the photographer and he assures me that you’ll get your photos within a week. We’ll see!

Should they compensate me?

I'd like to ask what to do in a situation whereby I bought some food in a store which I later found to have gone bad after a bite or two. I took the item back and was told by the store that indeed it had went bad. They replaced it with on OK one and said because they didn't make me pay for it, they had compensated me. I did not feel satisfied considering that I had first been thrown from pillar to post before seeing the manager who also said the same thing. Also my time spent in going back to the store. I just wanted to ask from you, is there compensation that I should have received in that situation or an apology is as far as it can get?

Technically, I suspect that the store is correct. You bought an item of food that wasn’t “of merchantable quality”, as required by Section 13 (1) (a) of the Consumer Protection Regulations. The store then selected which of the three Rs (refund, repair or replacement) they preferred, in your case a replacement. You suffered only minimal financial costs in this unfortunate experience as well as the loss of time so I don’t think you have a very good legal claim for compensation. But then I’m not an attorney.

But there’s something much more important here. What the store did was technically correct but in my view it’s not nearly enough. This wasn’t a cellphone that malfunctioned, this wasn’t a minor inconvenience, this was something much more important. This was a food safety issue. You were lucky that the food you bought didn’t harm you and I think the store needs to understand that. They also need to understand that they were lucky as well. I think you should speak to their Head Office and alert them to the failure at the store and the risk it posed to you and your family.

Realistically I don’t expect them to do very much regarding compensation but I do think you’ll have done us all a favour by alerting the company to a serious failure of their food safety practices.

Radio show notes - week beginning 22nd October 2018

Source: Wikipedia

1. Have I been hacked?

A consumer asked us whether he had been hacked. He'd received the following email:

“I infected your operating system with a virus and have been monitoring you for a long time. Even if you changed the password it does not matter, my virus intercepted all the caching data on your computer and automatically saved access for me.

I have access to all your accounts, social networks, email, browsing history. I have the data of all your contacts, files from your computer, photos and videos. I took screenshot through the camera of your device, synchronizing with what you are watching. I think that you do not want all your contacts to get these files, right?

If you are of the same opinion, then I think that $564 is quite a fair price to destroy the dirt I created. Send the above amount on my Bitcoin wallet. As soon as the above amount is received, I guarantee that the data will be deleted. Otherwise, these files and history of visiting sites will get all your contacts from your device. Also, I'll send to everyone your contact access to your email and access logs.”

He asked: "What should I do?"

It's simple. Do nothing.

While all of the things this email claims have been done can be done, I doubt it's been done to this guy. If they had, don't you think the "hacker" would have used the victim's name when he made the threat?

This is a scam that plays on our fear (and ignorance) of hackers and what they can do. Many of us remember the WannaCry ransomware attack from 2017 when computer users around the world had their documents encrypted and a ransom payable in Bitcoin was demanded to decrypt them.

This is just a scam email that has been sent to many potential victims, including Consumer Watchdog. Just delete it.

Meanwhile, be very careful about the web sites you visit, the apps you download and the attachments you receive in your Inbox. Be very careful.

2. Green World

Do you remember the press release from the Ministry of Health and Wellness last month regarding Longrich (and other) products? It's worth reading again.

“The Ministry of Health and Wellness wishes to notify the public that the following complementary medicines are not approved for use in Botswana, Xiangzhiling products, C24 tea, Table Charm products and Longrich medicinal products. … any person selling these products or any other related products will be charged according to Section 23.1.2 of the Medicines and Related Substances Act … liable to a fine not exceeding P100,000 or to imprisonment for a term not exceeding 10 years or to both”

Now we have another purveyor of lies and threats to our health. Green World. This advertisement was found in a supermarket in Gaborone.

Zoom in a little further and you can see the health claims they make.

I contacted the number given on the advertisement and got the following response.

“My name is Marshall. Am an international distributor of Green World herbal products. All our products are organic. Meaning they are grown in a natural environment where there are chemicals, additives or preservatives added to them, also there are no side effects. We treat all known disorders. Just to name a few: Diabetes type 1,2,BP, Cancer, Obesity, Period pains, Fiberiods, Libido, Low sperm count, Infertility, Prostate disorders etc”

"We treat all known disorders"? Really?

We've referred this to the enforcers at BOMRA, the Botswana Medicines Regulatory Authority who are gradually taking over from the Drug Regulatory Unit in the Ministry of Health and Wellness. I expect we'll see some action very soon!

P.S.. The ridiculous medical claims are a side show. Green World is a pyramid scheme.

3. Where’s the refund?

“I engaged a kiddies party planner for a package for a birthday party on 28th of October. My package was that they would be providing venue and I hire equipment and do my own decor. I paid 50% of the P2500 fee which was P1250 on 28th September. I had to cancel the booking on 11th October and requested for a refund but I was only refunded 50% of my deposit which is P625. This "policy" was never mentioned and was surprised that I didn’t get my P1250. I did not complete any booking form or any documentation. Everything was just communicated on Whatsapp. Is this correct to not give me my full refund?"

Are deposits refundable? That depends on the agreement you signed with the supplier. You didn't sign an agreement? So how can either of you prove that the deposit was refundable or not?

There's nothing wrong in principle with non-refundable deposits. The supplier books or buys equipment, ingredients for food, staff, a band, all sorts of things in advance of your booking and it's not fair to leave them with that burden if you cancel at the last minute. Also, they might have turned away another booking because you got there first?

The key thing is to have a written agreement that explains these things.

So what if there's isn't an agreement? Section 15 (1) (e) of the Consumer Protection Regulations probably applies and any deposit should be "promptly" restored.

4. Am I covered?

“I had an accident on my way to work and my vehicle overturned. The Police charged me with driving without due care. I kept on contacting the insurer throughout the process and yesterday I received a letter of claim rejection citing I broke the law and the cover clause of accident/loss avoidance. They say the vehicle has been rendered beyond repair.”

Yet again, a reminder that we must read agreements before signing them. And then read them again. Then keep on reading them until we understand them.

All insurance policies have some exclusions. Life policies don't cover you if you commit suicide. Medical aid schemes often don't cover pre-existing conditions. Vehicle policies don't cover you if you were drunk or if the vehicle was unroadworthy at the time of an accident.

This particular policy doesn't cover you if the police charge you for a traffic offence and this customer was charged with "driving without due care".

The general rule with insurance policies (and with many other things in life) is that you get what you pay for. The cheapest policies with lower premiums generally come with lower levels of cover, higher excess amounts and more exclusions. Higher premiums generally mean better cover, lower excesses and fewer exclusions.

The Voice - Consumer's Voice

Can I get my deposit back?

Please advise on this situation I am in.

I engaged a kiddies party planner for a package for a birthday party on the 28th of October. My package was that they would be providing venue and I hire equipment and do my own decor. I paid 50% of the P2500 fee which was P1250 on 28th September.

I had to cancel the booking on the 11th of October and requested for a refund but I was only refunded 50% of my deposit which is P625.This "policy" was never mentioned and was surprised that I didn’t get my P1250. I did not complete any booking form or any documentation. Everything was just communicated on Whatsapp. Is this correct to not give me my full refund?

It is actually normal for there to be a cancellation fee when you book someone or a company to deliver services like this. If you think of it from the service providers point of view you can understand why this is done. Depending on the service they’re booked to provide, the supplier has to book equipment, food and drink, staff, a band, clowns, security, who knows what. If the customer then cancels the supplier can be out of pocket.

In your case, where you were just booking the venue but providing your own materials the principle is still the same. When you booked the venue, did they later turn away other customer who wanted the venue? Will they lose business because of your cancellation?

However, it’s normal practice for any company with some common sense to have a booking form that describes this so the customer can see, understand and accept the cancellation conditions it contains. It was probably very unwise of this supplier not to ask you to complete such a form. You might not have any luck but I think it’s worth writing to the owner of the venue saying that you never agreed to any non-refundable deposit condition so you’d like your deposit back “promptly” as required by Section 15 (1) (e) of the Consumer Protection Regulations 2001. Good luck!

Have I been hacked?

I received an email which said someone had hacked me. The email said.

“I infected your operating system with a virus (trojan) and have been monitoring you for a long time. Even if you changed the password it does not matter, my virus intercepted all the caching data on your computer and automatically saved access for me. I have access to all your accounts, social networks, email, browsing history. I have the data of all your contacts, files from your computer, photos and videos.

I took screenshot through the camera of your device, synchronizing with what you are watching. I think that you do not want all your contacts to get these files, right? If you are of the same opinion, then I think that $564 is quite a fair price to destroy the dirt I created.

Send the above amount on my Bitcoin wallet. As soon as the above amount is received, I guarantee that the data will be deleted. Otherwise, these files and history of visiting sites will get all your contacts from your device. Also, I'll send to everyone your contact access to your email and access logs.”

What should I do?

Nothing. Do nothing at all.

While the technology does indeed exist to do all the things mentioned in the threat, I seriously doubt that it’s the case here. If it was true, don’t you think they would have used your name when addressing you? Don’t you think they would have been a bit more detailed, a bit more specific? Don’t you think they would have taunted you with some of the “dirt” they claim to have gathered?

In this case I’m certain that this is a scam. Don’t send them a thing.

Meanwhile, please be VERY careful what you download from the web and about which web sites you visit. It certainly IS possible to be infected with malicious software (“malware”) that can do a variety of bad things to your computer and the data contains. Be careful!