The Voice - Consumer's Voice

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.

The Voice - Consumer's Voice

Scam Alert – a delivery scam

We've heard from several people recently who were scammed after they received notifications about shipments that were to be delivered to them. Unfortunately, several of these people then lost a lot of money to the scammers who sent these messages. It's important that we all understand how these scams work so we can protect ourselves and also help educate the people we care about so they don't fall victim as well.

The scam begins with a text message alerting the recipient to a package that's waiting for them. 

In order to receive this package they are invited to click on a link in the message and then pay a very small amount to have the package released. In many cases, it's just over P4. However, this is a lie, it's just the beginning of a much more complicated process. If you click on the link (you shouldn't) you're directed to a website that looks very much like that of a legitimate shipping company.

The one I received linked to what appeared to be the website of Botswana Post. It led me through a series of screens in which I was asked to enter my personal information including my address and contact details.

Finally I was taken to another screen where I was asked to enter my bank card details. This included the card number, expiry date and the CVV code that is used to prove my identity. 

Obviously I used fake details but I was impressed by how professional the screens looked. The moment I entered the last digit of my fake CVV code the screen went blank and I was returned to the Google welcome page. You can bet that within moments, the scammers will have used my card details to spend my money. I spoke to a victim who had then received an OTP which, unfortunately for her, she handed over to the scammers, still believing that it would lead to the delivery of a package. She lost over P7,000 and another victim I heard from lost more than P18,000. 

The bad news is that if you fall victim to a scam like this your money will quickly disappear forever and your bank isn't going to be any help. It's not their fault that you voluntarily gave criminals your banking details. They'll wash their hands of you.

The solution is simple. Please, never click on a link in an email unless you are 100% certain it's genuine. If you have any doubt, don't click on it. You can save yourself a LOT of money, hardship and distress. Please spread the word to everyone you know never to fall victim to a scam like this.

Can't they cancel the policy?

I'm a government employee and in July I tried to get a life cover from an insurance company because I wanted to get a loan. When I got to the bank they said they couldn't help me with the insurance since it was going to start working after 12 months. I then decided to cancel the cover and do it when I'm ready again. I contacted those who were helping with the paperwork and told them that I would no longer need their life cover so they should cancel it. They came to my workplace then gave me a form to sign that I no longer want the cover. This was around the 14th July. To my surprise end of September I received my pay slip and they had deducted. Just yesterday I received another one for October and they have also deducted. I tried asking the person who was helping me why are they deducting but he is not answering to any of my text.

Could you please help? Is it OK for them to be deducting when I had long signed that I don't need their services?

No, this is certainly not OK. The rules set by NBFIRA are very clear. There is a mandatory cooling off period within which you can change your mind and cancel an insurance policy. Clearly, this insurance company has either ignored this or they've failed to update their records in time. Either way, it's their job to fix this problem, to refund you the amount they've already deducted and then make sure that no further deductions take place. If I was in your position, I would also demand a letter from them confirming that the policy was cancelled.

I think we should both contact this insurance company to make sure they understand what you need them to do.

The Voice - Consumer's Voice

Can they get my money back for me?

Please help me with a legit recovery company that deals with recovery of cryptocurrency platforms. I believe I got scammed and I want to recover my money back. I invested through Yellowcard and I never received any profits as I kept on sending with the hope of receiving more.

I was engaged with one certain company named Recovery Management Service Botswana they said they can recover for me but it seems like it's a scam too. I did not pay coz I felt they want to scam me as they wanted me to pay a fee for their service before they can release my money. Please help, thank you.

Firstly, I'm very sorry that you fell victim to that scam. If it's any consolation, you were certainly not the first person to fall for a scam like this and you won't be the last. It's also important to know that the scam you fell victim to was nothing to do with the real Yellow Card company. Yellow Card is a legitimate cryptocurrency exchange but they are not themselves a way to make money. We've reported endless times about these scams for several years but clearly the message hasn't spread far enough yet. The simple truth is that anyone, no matter how charming they seem, no matter how many impressive Powerpoint presentations they show and no matter how much they offer in profits, they're lying to you.

However, the real tragedy is that many people who've been scammed are then scammed a second time when they're approached by someone who claims they can help recover the losses they made. Like in your case, they give themselves an impressive name and suggest that they can somehow recover the money stolen from you. But this is just another scam. It's probably even the same scammers who know they took your money before and think they can do it again. And many times they're right.

I'm really happy that you spotted this before you fell victim to a second scam. Now please join us in trying to spread the word about these scams and help the people we care about to avoid them.

Where's my money?

A few years ago I opened a savings account with my bank. The account had a balance of P120 which all along I thought was gaining interest. I did not transact on this account for a few years.

Last month I went to the bank to try and deposit some money into the same account only to be told that the account has been closed and my savings have been gobbled by bank charges. Meanwhile I had all along been of the impression that i have invested P120 as savings. Can you help me get my P120 back with interest or ask the bank to reopen my savings account with my original investment plus interest?

Unfortunately, I don't think I have any good news for you. I suspect the solution to this problem will be found in a small print of the banking agreement you signed when you first opened this account. Although the account might have some interest over the years it's also likely that there were bank fees that were deducted from the balance on a regular basis. Given also that the amount of money you invested was so little, the interest would've been tiny and probably very small compared to the bank charges. It's no surprise then to find that the accounts probably empty.

The other problem you face is that bank accounts that are ignored for a long period of time are declared dormant and eventually closed by the bank. You might've seen lists of these accounts published in the newspapers when the banks are trying to contact the account holders to either reopen the account or give them any money they're holding for them.

The lesson is to understand as well as possible the terms of conditions of any bank account you open and then do your best to abide by those terms and conditions. I also think the banks are letting us down by not educating us sufficiently about these things. They're the experts, they're the ones who should be sharing their knowledge with us. Isn't that what we pay them to do?