Can they take these details?
I want to ask if its the correct procedure for these institutions to request a bank card for a loan application?
No, it's not and it shouldn't be. You sent me a copy of the conversation you had with this microlender and they wanted various things from you. Some were reasonable, including copies of your ID, 3 months bank statements, , your latest payslip and a confirmation letter from your employer. However, the last item they wanted was "5. Bank Card". That's where I have a problem.
I contacted the company and they were very polite and explained how legitimate they were. However, they said that sometimes: "we need to make use of a so-called card-not-present transaction, similar to when such client will do an online e-commerce transaction" and that "we need to capture the card number, as is physically displayed on the card – exactly the same as when buying online".
But I don't understand that. That's not how online purchases work. When we buy something online using our debit or credit cards we also enter the CVV number on the back of the card. Does this microlender do that? I asked and they said "No, we don't." If what they say is correct, they can't use the card for an online transaction.
I don't know for sure why they want the card number but speaking personally, I wouldn't trust any company that asked for it. I suspect they might only do this to know that you have a bank account and help prove your identity. It's easy enough to forge a payslip or bank statements. But they should just be honest about it. I also spoke to a very senior banker and he said that this was deeply suspicious. He couldn't think of a reason to take it. My worry is what can be done with the number and how carefully they're storing it.
My advice is to be very careful how and where you disclose sensitive information like your card numbers. Please treat them as carefully as you would your cash.
Can they charge this much?
My mother purchased some furniture items; a bed, TV and fridge on a hire purchase agreement. Beginning of this year her work contract came to an end apparently because of no funding from their donors. She notified the store of this, however the shop has consistently called her requiring her to pay.
My issue is in that now the shop (being owed around P8,300), apparently having involved or in the process of involving sheriffs have indicated that with the involvement of the said sheriffs, my mother will have to pay double that amount plus an additional fee of P2,500 for the sheriffs to leave Gaborone and go to Masunga (where the hire purchase was made). The supposed reason for this process is because the shop does not give the sheriffs my mother's "profile", they have to travel all the way to get it. I don't know or understand what the additional P8,300 which is 100% of the outstanding amount is for.
It cannot be said to be ethical how hire purchase stores make their money, my question, is what is happening here?
What's happening here? It's hire purchase happening here. Hire purchase can be a reasonable way to buy things if you recognise and accept how expensive it can be but it only works well if nothing goes wrong. Even just a single missed payment can suddenly make your hire purchase debt a terrible burden. This is because of the small print where it describes the interest and penalties you can face and also that the store can repossess the goods whenever they like if you're in arrears. And even if they repossess the items you bought, you still owe them the money.
The best thing your mother can do is to discuss this with the company and negotiate a payment plan that she can afford and that they will accept.
No comments:
Post a Comment