Phantom debt was a two-year nightmare
Fraudsters spent R7 000 in his name — then the hassles began
BAGGING IT: Leave your ID book or card at home. Take only the credit and debit cards you may need IT took Peter van der Walt two years to sort out a debt that wasn’t his — and only after he resorted to venting on social media.
Van der Walt’s predicament — which involved fraudsters opening a Duesouth store account in his name in 2013 and spending more than R7 000 — is hardly unique.
Identity theft and impersonation are rife these days — and you don’t even have to lose your ID book or passport to become a victim (see box).
So what went so wrong in this case? That depends on who you ask.
According to Van der Walt, the protagonists in this saga — other than the crooks — were external attorneys acting for The Foschini Group (which owns Duesouth), as well as MBD Legal Collections, to which the retail group sold its book of written-off debt in April last year.
He also blames various industry bodies, and even ombud offices, for failing to assist.
The implicated companies, however, claim Van der Walt didn’t comply timeously with the documentation needed to clear his name.
The regulator, legally empowered to resolve such an impasse, was never approached. Had it been, Van der Walt could have saved himself a lot of misery.
The Council for Debt Collectors, established under the Debt Collectors Act, can demand any documentation necessary from a collector to resolve a dispute. It monitors and enforces a strict code of conduct, which forbids, among other things, harassment, threats and calls between 9pm and 6am (or on a Sunday).
So Van der Walt’s claims of aggressive phone tactics, calls at odd times and persistent harassment would have been immediately probed.
The first payment demand came in 2014 from HTN Attorneys, a debt-recovery firm acting for The Foschini Group; he insisted the account was not his and the demands stopped.
But in July last year, after The Foschini Group sold its debt book to MBD, the requests for payment started again. Van der Walt asked for a copy of the contract and ID used; the contract was sent but no ID.
“The name and ID number on the contract were mine, but none of the other information was remotely correct,” said Van der Walt. “I demanded the ID, but to this day, I’ve seen nothing.” Turns out the retailer doesn’t keep copies of IDs as it’s not legally required.
He also discovered he had already been blacklisted, and spent time and effort having the adverse listing removed.
Finally, in January this year, after several more calls, he supplied both The Foschini Group and MBD with an affidavit. But in May he was contacted by MBD yet again.
“I realised that all the documentary evidence in the world didn’t matter,” he said. “I’d done everything right and by the book. I felt victimised . . . at the mercy of a system that didn’t care.” AT Classic Revivals in Parktown North, Johannesburg, for repairing, free of charge, a customer’s broken chair handmade by it 48 years ago. “Considering fair wear and tear, that is remarkable service, well beyond reasonable expectation,” said Frank Gonsenhauser.
So he decided to attack the retailer’s image. He trolled the group’s Facebook page and its YouTube channel: “Finally, I had a call from someone at the retailer. She apologised and said she would handle the matter, which she did.”
Two days later, he had an e-mail from MBD saying the account was closed. And a call and letter from the retailer, apologising.
“The retailer handled it firmly and finally, [but] only after my PR attacks began.”
The Foschini Group’s head of marketing and e-commerce, Kathryn Sakalis — to whose attention Van der Walt’s Facebook venting had been brought and who personally resolved the problem — said that had he provided an affidavit in 2014 as requested, the matter would have been settled then.
“Unfortunately, it sometimes happens that customers claim their accounts are fraudulent when this is not the case, so [we] need proof of the fraudulent claim, which Mr Van der Walt did not provide,” said Sakalis. AT shops (largely small, independent ones) that bar customers from taking cellphone pictures of goods. Customers don’t want to steal the dress design: they just want to show an item to someone not shopping with them. Archaic behaviour, especially in our socialmedia-driven world.
She said the group had put in place “several measures” since his case, including that it would investigate every matter in dispute, whether it was a sold debt or not.
“We have now joined forces with the Southern African Fraud Prevention Service, to improve our awareness of incidents like this where identity theft has occurred or is claimed, to protect both the company and our customers’ interests.”
MBD spokesman Chris Harradine denied any aggressive, unprofessional and unethical conduct, alleging Van der Walt had been non-co-operative.
Harradine said the signatures on the affidavit and the application form had been similar and it had needed Van der Walt’s assistance to “conclude” the matter. MBD had not received the requested signature samples.
Council for Debt Collectors CEO Andries Cornelius said: “The consumer tried every avenue he thought available to him except the one that could have assisted him.”
Following a written complaint, the council (with which MBD is registered) can demand from a collector the basis of a disputed claim. Any attempts to collect after that request can result in disciplinary steps.
“The council has been so effective in regulating the industry that the government is considering whether attorneys should be reclassified as debt collectors to regulate their conduct and limit the fees they charge in collection matters.” ý For more, visit cfdc.org.za ý Tune into Power 98.7’s “Power Breakfast” tomorrow at 8.50am to hear more from Megan
Identity theft and impersonation are rife these days — and you don’t even have to lose your ID