PPS scam? Be­ware!

Finweek English Edition - - Letters -

I PAY MY Pro­fes­sional Prov­i­dent So­ci­ety (PPS) con­tri­bu­tion an­nu­ally. My wife, who has a dif­fer­ent pol­icy un­der her own sur­name, does the same. Over the past year PPS has er­ro­neously deb­ited my In­vestec ac­count on sev­eral oc­ca­sions, the last be­ing 2 Jan­uary 2009 for the amount of R38 130.

Through their agent a com­plaint was lodged on ev­ery oc­ca­sion (see at­tached doc­u­ment). On ev­ery oc­ca­sion it’s taken weeks, if not months, to re­pay the unau­tho­rised debit. On ev­ery oc­ca­sion that was done without the pay­ment of in­ter­est.

PPS’s web­site boasts it has 150 000 clients. Pre­sum­ing one in 20 of its clients is sub­jected to this ser­vice, I’ve cal­cu­lated that PPS must be mak­ing more than R1m in in­ter­est on those unau­tho­rised deb­its. My wife has been sub­jected to the same treat­ment. And the same has been re­ported by sev­eral of my col­leagues, thus leav­ing me to con­clude this is com­mon prac­tice.

Ad­vo­cate TJ Fer­reira (PPS) dis­putes my claim that PPS is mak­ing money from in­ter­est on unau­tho­rised debit or­ders, but can’t or doesn’t wish to dis­close to me (or its mem­bers?) how many com­plaints of this na­ture it re­ceives and how much in­ter­est PPS has ac­cu­mu­lated on those unau­tho­rised deb­its.

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