The Banking Association of South Africa - Code of Banking Practice

Why has the Code been developed?

The Code has been developed to:

promote good banking practices by setting minimum standards for us when dealing with you;
increase transparency so that you have a better understanding of what you can reasonably expect of the banking products and services we offer to you;
promote a fair and open relationship between you and us;
promote the fair treatment of customers, which includes achieving at least the following:
Customers can be confident that they are dealing with a bank where the fair treatment of customers is central to the bank’s culture.
Where a bank provides products and services to customers, the bank designs suitable banking products and services to meet the needs of identified types or categories of customers who are targeted accordingly.
Customers receive clear information from a bank, who keeps customers appropriately informed before, during and after entering into a contract in respect of a banking product or service that a bank offers or provides.
When advice is given, it is suitable advice about a bank’s products and services, taking the needs and circumstances of customers into account.
A bank provides customers with banking products that perform as a bank or its representatives have led customers to expect, and the related customer service is of an acceptable standard and in line with the expectations created.
Customers do not face unreasonable barriers imposed by or on behalf of a bank when customers want to change or replace a banking product or service, request a withdrawal, or submit a complaint.
When a bank renders a service, the bank (1) renders the service in accordance with the contractual relationship and reasonable requests or instructions of the customer, (2) executes the service as soon as reasonably possible and with due regard to the interests of the customer, and (3) appropriately prioritises the customer's interests.
Confidence is fostered in the banking system.

Term	Explanation
Credit agreement	A legal contract in terms of which we lend you a certain amount of money for a specified period or finance movable goods and that outlines the terms and conditions associated with the contract, including your periodic repayments of the loan plus interest or, in the event of a lease, the monthly rental. The NCA does not apply to your credit agreement with your bank if: you are a juristic person (subject to the below principles regarding trusts); or you are a trust with three or more trustees; or you are a trust with one or two trustees, but the trustees are juristic persons; or you are a partnership; and your asset value or annual turnover is R1 million or more.
Customer	A personal customer and an SMME. Take note Where parts of this Code only apply to a customer of a bank and the pronoun ‘you’ is used, it means customer in that part.
Debit order	A mandate, being a written, verbal, or electronic authority that you give to a service provider, allowing a service provider to debit your bank account.
Deposit	Putting money into an account, thereby increasing the credit balance, or reducing any debit balance.

Term	Explanation
Promotional offer	An offer we make you of a prize, a reward, gift, free goods or services, a price reduction or other benefit, such as a voucher entitling you to a price reduction or other benefit. Take note Your bank will apply the principles in this Code to a promotional offer where you are a: natural person; OR juristic persons; trust or partnership; your asset value or annual turnover is less than R2 million. AND Where the Consumer Protection Act 68 of 2008 applies.
Reasonable	Justifiable and comparable to the service provided.
Sanctions	Restrictions on activities that relate to particular countries, goods and services, or persons and entities. Take note South Africa implements the targeted financial sanctions (TFS) that originate from the United Nations Security Council resolutions under Chapter VII of the Charter of the United Nations (UNSCR). For these sanctions to be given effect FICA requires accountable institutions to freeze property and transactions pursuant to financial sanctions imposed in the UNSCR.
Security	Items of value, such as a mortgage bond registered over a property, share certificates and life policies, which represent assets used as support for a loan or other credit facilities. Take note If you do not repay the loan for which you have provided security, we have the right to dispose of the security.

Objectives

Why has the Code been developed?