The Banking Association of South Africa - Code of Banking Practice

The summary below sets out your rights and responsibilities, in terms of the Code, in your relationship with us. We discuss your rights and responsibilities in greater detail in the body of the Code (from paragraph 4 ‘Access to banking services’). If the information differs, the text in the body of the Code will always be regarded as the correct version.

3.1 Your rights

As a customer, you can expect the following conduct from us:

What we will do

We will:

act with fairness, transparency, trust, confidence, accountability, and integrity, towards you;
provide you with accessible basic banking services and products, subject to eligibility and qualifying criteria continuously being met;
take reasonable measures to attend to the needs of vulnerable customers who have disclosed their vulnerabilities to us;
make sure that all marketing material is clear, fair, transparent, reasonable, and not misleading;
effectively and adequately disclose information, including the terms and conditions of banking products and services, any changes in the terms and conditions, fees and charges, interest rates, the discontinuation of products and/or services, and the relocation of premises where possible;
provide you with information in plain and understandable English;
make sure that our staff members attend to your transactions and enquiries;

Take note

We will allow the cancellation of a debit order. However, please note that this does not mean that you are excused from your other responsibilities relating to the product taken up.

treat your information as private and confidential, unless we communicate otherwise;
enable you to cancel debit orders where the bank is the beneficiary;
provide you with access to or, on request, make regular account statements available so that you can manage your account and verify entries on your account;
after you have told us about the loss or theft of a card or electronic wallet or device, take reasonable steps to prevent them from being used to access or misuse your account, as far as possible;
manage all complaints in a manner that is fair and reasonable to both you and us, considering the nature and complexity of the complaint; and
provide you with the details of the relevant ombud if you are not satisfied with the resolution of a complaint or dispute or with the outcome of a complaint and/or dispute handling process.

Take note

We will allow the cancellation of a debit order. However, please note that this does not mean that you are excused from your other responsibilities relating to the product taken up.

What we will not do

We will not:

use your information for direct-marketing purposes when you have opted out of receiving direct-marketing communications; and
close your account, without giving you reasonable notice and reasons.

Take note

There are exceptions to this rule, where the law permits, for example if your account is used for unlawful purposes, the bank’s relationship with you may be terminated.

Term	Explanation
Demand guarantee (or on-demand guarantee)	An undertaking (promise) that someone (or an entity), called the guarantor, gives the beneficiary of the guarantee that the guarantor will satisfy (pay) on demand the agreed amount of money (which often relates to the debts of another, called the principal debtor). Take note A demand guarantee is a primary obligation and is not dependent on the existence of any other debt or agreement. Any disputes between the parties about the underlying debt or agreement do not impact this obligation – the guarantee must be paid on demand.
Device	A tablet, cellphone and wearable or similar technology.
Device credentials	Includes but is not limited to: a password, passcode, unlock pattern and login details used as a method of accessing a device or authorising a transaction through a device.
Digital banking	Cellphone banking, internet banking and a banking app or other digital means.
Direct marketing	Us approaching you in person or by mail or by electronic communication, including email, SMS, and automatic calling machines, for the direct or indirect purpose of promoting or offering to supply, in the ordinary course of business, any goods or services to you; or requesting you to make a donation of any kind for any reason. Take note An automatic calling machine makes automated calls without human intervention.
Dormant account	An account on which you have initiated no activity for a period that we have established in advance and in accordance with the rules relating to the specific type of account.

Term	Explanation
Access credentials	The way you access your digital banking services, including your access code, password, or other unique means of personal identification.
Agent	A third party, either a company or a person, that your bank appoints to render a service. This can include third-party debt collection agencies that collect debts on behalf of your bank.
Applicable laws	Any laws in force from time to time; and any applicable industry code, guidance, policy, or standard enforceable by law; or any order that is set out by a regulator.
ATM (automated teller machine)	A machine that you use to withdraw cash and to access other banking services, including balance enquiries and prepaid purchases.
Banking app	An application on your device that allows you to transfer money from one of your accounts to another, pay bills, see statements and perform other transactions.
Basic banking services	The opening, operation, and maintenance of transactional accounts.

Term	Explanation
Beneficial owner	A defined natural person who independently or together with another person ultimately owns or exercises effective control over a juristic person and ultimately owns or exercises effective control over a juristic person customer, thereby applying a transparent principle through multiple layers of corporate ownership. Take note This definition provides for a singular, natural person beneficial owner, unless the ownership, interest or control is held or exercised jointly in a material manner, in which case all joint holders will collectively be deemed to be the beneficial owner(s). In the case of trusts the definition specifically includes all founders, settlors, donors, trustees, protectors, and named beneficiaries. In the case of partnerships this specifically includes all partners.
Bundled	Selling goods or services together as a required package, but: they have been packaged together for your benefit and convenience, including any savings in charges for you or we sell the bundled products or services separately and there is individual prices for those products or services. Your bank will apply the principles in this Code to bundled goods or services where you are a: natural person; OR juristic person; partnership or trust; and your asset value or annual turnover is less than R2 million; AND Where the Consumer Protection Act 68 of 2008 applies.
Business day	Any day other than an official South African public holiday, Saturday, or Sunday.
Card	Any card (physical plastic or virtual card issued to you) or card information that allows you to pay for goods and services and, where applicable, for performing functions at an ATM or point-of-sale device.

Term	Explanation
Cardholder	A customer who has a card, or a secondary cardholder linked to the account of the customer.
Charges [or fee(s)]	An amount or amounts that we can charge in respect of a transaction, product, an account, or a service that we offer.
Conduct Standard for Banks, 3 of 2020	The standard that applies to banks in relation to our provision of financial products and financial services. The aim of the standard is to make sure that we treat you as our customer fairly in accordance with six treatingcustomers- fairly outcomes, namely: Outcome 1 – Fair treatment is central to the culture of banks; Outcome 2 – Products and services in the retail market that are sold and marketed are designed according to the needs of the customers identified and targeted accordingly; Outcome 3 – Customers are provided with clear information and kept appropriately informed before, during and after point of sale; Outcome 4 – Advice is suitable and according to the customer’s circumstances; Outcome 5 – Service is of an acceptable standard and products perform as customers have been led to expect; and Outcome 6 – Customers do not face unreasonable after-sale barriers when they want to change a product, switch providers, submit a claim or make a complaint.
Contact details	Details that you have provided us with to contact you, such as your address, email, telephone, and cellphone information. Take note We require your address to send you communications and notices, including legal notices.

Term	Explanation
Vulnerable customer	A natural person, who because of personal circumstances, is especially susceptible to harm, particularly when a bank does not act with appropriate levels of care. Take note Where parts of this Code apply only to vulnerable customers and the term ‘you’ is used, it means vulnerable customers in that part. Vulnerable customers can include customers who: have a physical disability; have psychological problems and/or mental health problems; have a debilitating illness; have limited financial literacy; experience changed or changing financial circumstances; experience adverse life events; are susceptible because of: their age (the youth, due to a lack of experience, or the elderly, in other words people of 65 and older), language barriers, loss (such as of a job, a family member through death, because of divorce or an illness), or geographical location (which can lead to customers not being able to access certain banking products and services); and is at a higher risk of experiencing unfair treatment because of » a limited ability to maintain or develop their wellbeing, difficulty in obtaining or understanding information, or being unable to access, choose or buy suitable products (and services).
We, our, us	Your bank
Written	Something in writing, including electronic representations of information, such as an SMS or email, that is stored, sent, or received by electronic means.

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.

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
Fixed interest rate	An interest rate that remains unchanged and not affected by market rate fluctuations for the specified period of the loan or credit agreement or other product.
Integrity	To be accurate, consistent, and reliable.
Interest	The amount we charge you in respect of the amount you owe us; or the amount we pay you in respect of for example, your savings or investment account, usually expressed as a percentage with reference to a period, such as per annum.
Internet banking	An internet-based system that is provided by us and allows you to transfer money between your accounts, pay bills, see statements, and perform other transactions.
Juristic person	Includes a trust, partnership, association, body of persons, body corporate, company or close corporation or similar entities with legal rights and duties either incorporated in or outside the Republic of South Africa, which has legal personality or enjoys a similar status in terms of which it may enter into contractual relations and legal proceedings. Take note Where parts of this Code apply only to juristic persons and the pronoun ‘you’ is used it means juristic persons in that part.
Loyalty credit or award	Any benefit or a right to goods, services, or other benefits (including points, credits, tokens, devices or other intangible or tangible things that can accrue to you) that you can accumulate and entitles you to certain goods, services or benefits that are part of a loyalty programme.

Term	Explanation
Loyalty programme	Any arrangement or scheme where a supplier of goods or services or a similar entity offers or grants any loyalty credit or award in connection with a transaction or agreement to you. Take note Your bank will apply the principles in this Code to a loyalty programme where you are a: natural person. OR juristic person; partnership or trust; and your asset value or annual turnover is less than R2 million. AND Where the Consumer Protection Act 68 of 2008 applies.
Money laundering (ML)	Any activity that has or is likely to have the effect of concealing or disguising the nature, source, location, disposition, or movement of the proceeds of unlawful activities, or any interest that anyone has in such proceeds.
Natural person	An individual and sole proprietor. Take note Where parts of this Code apply only to a natural person and the pronoun ‘you’ is used, it means a natural person in that part.
NCA	The National Credit Act, 34 of 2005, that aims to regulate the business of credit providers and places a variety of obligations on credit providers (mainly aimed at protecting credit consumers), including the prevention of reckless lending practices and measures to enhance disclosure of information to credit consumers.

Your rights and responsibilities in terms of the Code

3.1 Your rights

What we will do

Take note

Take note

What we will not do

Take note