Mystery Debit Orders

SA BANKS: ADVICE ON HOW TO DEAL WITH QUESTIONABLE DEBIT ORDERS

- Liesl Peyper

Moneyweb reader discovered that two debit orders – totaling nearly R500 a month – had been going off her FNB account since February.

The charges were from companies she did not recognize – Legal Cover and Medic Now – deducting R260 and R225 respectively.

FNB gave her references for the debit orders – SS-Legcov and SS-Medic.

The reader had never had any business dealings with the companies, nor had she authorized any debit orders linked to them.

FNB’s fraud department said she could not stop the debit orders and she would need to cancel the transactions personally.

She was also told that the bank could not block future deductions because the reference numbers changed every month, making them difficult to trace.

Medic Now and Legal Cover

FNB gave contact numbers for both Medic Now and Legal Cover, which Moneyweb contacted.

Moneyweb reached Sameer Vasta, the legal compliance officer at Medic Now.

The service is marketed as an affordable alternative for individuals who do not have access to traditional medical aid, particularly those living in townships where state ambulance services may be inadequate or unavailable.

Legal Cover is, according to its website, a "subscription-based protection plan" that provides legal services, including for divorces and traffic fines.

22-step verification protocol

Vasta told Moneyweb that Medic Now did not conduct direct sales.

The company relies on third-party marketing agencies that approach potential clients.

The agents use secure devices equipped with DebiCheck functionality, which allows prospective clients to authorize debit orders on the spot.

Vasta says it is "technically impossible" for a debit order to be processed unless this process is completed in full and approved by the customer.