PPS scam? Beware!
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.