News24

Bank adverts found to be misleading

2012-04-27 09:08

Johannesburg - Both Standard Bank and First National Bank have been found guilty of misleading advertising, according to a report on Friday.

Last month the banks accused each other of ambiguous and unsubstantiated marketing and both approached the Advertising Standards Authority (ASA) over adverts they believed were misleading to consumers, the Star newspaper reported.

FNB was found to be misleading the public for its claim that its Smart Zero account was the "first bank account in South Africa with a zero monthly fee".

It found that other banks had offered this service in the past, including Standard Bank.

The authority also found that Standard Bank's posters which read: "free cellphone banking, free telephone banking, and free internet banking", were misleading as it did not inform consumers that certain costs applied, like a subscription fee.

Comments
  • Ian - 2012-04-27 09:15

    they are the biggest criminals in this country, standard bank and there R6.35 charge per eft, thieving scum

      clive.beckett - 2012-04-27 09:18

      well said Ian

      Gordon - 2012-04-27 09:30

      If you thought they were bad in SA, in Kenya, Standard Bank charge R200 / month (KES2000) just to have access to internet banking, plus upfront charges for security tokens and usual transaction fees!!!!!!!!

      Inja - 2012-04-27 09:43

      Try Capitec, I am happy there

      Jaja - 2012-04-27 10:17

      Thank goodness that i'm a student. I only busy pay 13.50 a month for as many transactions as I want, and thats why I will always be a perpetual student!

      Gestoffle - 2012-04-27 10:29

      I bank with FNB - I had a customer deposit R100 (in cash) into my bank account. The cash deposit fee was R18!!!!! Here is how the poor are getting ripped. They will invariably deposit little amounts; and as a percentile, they are getting stung on little amounts!

      Walter - 2012-04-27 10:43

      I'm extremely pleased that these realities have been exposed. FNB's well known "How Can we Help You" should read "How Can we Screw You!" I have been at loggerheads with them for weeks over a regular deduction being made to my cheque account for "internet fees" which are for a company that I headed and closed the account over a year ago after selling my farms. The company account had nothing whatsoever to do with my personal account. Noseweek here I come.

      Brandon - 2012-04-27 11:11

      @Alicia. I bank with Nedbank in Fourways. They are brilliant. No queues, branch manager available, friendly and helpful staff etc. I was with FNB for years and then moved to Botswana for 2 years where I banked with Barclays (not much fun with them). When I came back, FNB told me they had frozen my account due to inactivity. Which I understood. They told me to come in and re-open the account. That weekend I was in a car accident so I arrived at FNB Fourways on the Monday on crutches and a cast. I stood in a queue for an hour and when I got to the help desk. I was told that I was not in the right queue. I turned around, hopped along over the parking bays to Nedbank who gave me a seat and opened an account for me. Since then, I have had no problems at all.

      martin.gee.godfrey - 2012-04-27 11:38

      Charged me R115.00 fee for a bounced debit order which THEY bounced before checking that the money would be in the account before business opened on the morning following the debit. No phone call, no sms, just bam, reverse debit, and charge R115.00. Thanks Standard Bank...

      tjohnsonuk - 2012-04-27 12:33

      SA people get ripped off by banks there. The mentality of people in the UK is, why should they be charged for transactions on their accounts, its their money. No charges for drawing cash, depositing cash, no monthly fees just to be with them. (Sure, some banks offer extra features for a small fee, but in general, its free) Saying that, SA banks are 1st world in comparison IMO.

  • Msika - 2012-04-27 09:16

    Bunch of crooks!

      Sharon - 2012-04-27 10:15

      I'm surprised they don't charge us for the air we breathe while inside the bank!

      David - 2012-04-27 10:22

      Please don't give them ideas Sharon :-)

      Sharon - 2012-04-27 11:20

      @ David - that's what the girl in the bank said when I mentioned it to her!

      Sloragoth - 2012-04-27 19:41

      Sharon, they DO. Who do you think pays for the aircon? Kiepie, that's who.

  • Jacques - 2012-04-27 09:18

    That's the thing with our banks. The banking costs are so damn high, it's hard to put anything in an ad that isn't untrue. For instance, 'free online banking' looks good on an ad, but because they're all trying their level best to screw you out of your money, somewhere within the systen you're paying. Thus making the ad bollocks

  • Christopher - 2012-04-27 09:19

    They're all the same.

  • Jason - 2012-04-27 09:19

    I have to be honest, FNB rocks. Excellent service and low monthly costs. Will not ever change.

      Jayb - 2012-04-27 09:38

      @Jason you sound like you work for FNB

      David - 2012-04-27 10:12

      Somewhat agree Jason. I'm with FNB and find their service quite good. But they are a bank and are no doubt scheming on how to claim my soul as collateral. They are infinately better than Absa!!!!!!!

      Nick - 2012-04-27 10:40

      Hi JasonEye. I have been with FNB since its early Barclays days, and I must say that, given the occasional problems I have experienced over the years (which necessitated a phone call to resolve), I don't believe there is a bank that can come close to the products and service they offer. I don't work for them, but have conducted all my business transactions with them, with minimal disruption over all the years! Well done FNB. !!

      DuToitCoetzee - 2012-04-27 10:55

      @JasonEye I have done the dance with most if not all SA banks and they are all +- the same type of leaches, but I must admit I found FNB, on average, the best of them all. Yes, lately there one time pin system drives you up the mountains now and than, but we quickly forget how the others frustrated you. I am using them for private, business and international transaction and can recommend them, but as all other banks make sure you understand there system and know how work with it. .....and no I am not working for them. Hopefully they now work for me....at a hell of a price.lol.

  • Steve - 2012-04-27 09:22

    What a surprise .........NOT Biggest Cartel in the country.....Nice to see some cracks in the wall!!

  • Gert - 2012-04-27 09:22

    ANC a valid reason to nationalise this banks now

      Hugh - 2012-04-27 09:41

      Geez Gert what are you smoking. Never read the newspapers or watched local television?

      colin.dovey - 2012-04-27 09:47

      You deserve that Avatar.

      goyougoodthing - 2012-04-27 10:01

      Actually the one thing that should be nationalised worldwide is the banking system. Why are we all paying interest to private people for printing money from nothing??????

      Sharon - 2012-04-27 12:17

      pee off you --------

  • Gladstone - 2012-04-27 09:24

    You see how easy it is to find the banks guilty, then what makes it hard on your corupt comrades?

  • NtoKaMagcoba - 2012-04-27 09:27

    STD bank sucks a lot with their fees, i would love 2 switch to Capitec but one thing i hate abt them theres very few atms for them

      colin.dovey - 2012-04-27 09:54

      My son uses Capitec - from what I understand, this is how it matches up: Capitec charges a fixed fee of R3.75 per withdrawal at a Capitec ATM and a fixed fee of R7 per withdrawal at the ATM of another bank. An Absa client with the standard current account pays R9 to draw R500 at an Absa ATM, whereas a Capitec client pays only R7 to withdraw R500 at the same ATM. It therefore costs the Capitec client less to use the Absa ATM than it costs Absa’s own client. Capitec was founded in 2001. It has 3.2 million clients and attracts on average 90 000 new clients a month. When my son opened his account, the staff were very friendly. One of the ways they keep costs down is that they do not pay out money directly from a teller window (therefore security cheaper) and the money they take in is put directly into a "drop-box"

      Wendy - 2012-04-27 13:02

      Xavier, it's R4.00 from a Capitec ATM. I happened to notice this going into my local shopping centre this morning, which opened a Capitec branch a few months ago right next to the main entrance. They also, in their list of cash withdrawal fees, showed R1.00 fee for withdrawal from a till. They then showed another screen reflecting just the R1.00 withdrawal fee from a till - ie it was highlighted. In that centre there is a Pick & Pay and a Shoprite where one could withdraw, and that without having to make any purchases. According to their website, you can also draw at Pep but that is in conjunction with a purchase. The only issue with drawing at a supermarket till is that you have to plan to be there when the supermarkets are open - but, nothing wrong with a little planning! And, at a busy time of the month, or over a weekend, it's probably better to be there early before the hordes descend on the place. I ALWAYS do my cash withdrawals at a till because I think it's safer from both a personal and financial point of view. The cashier actually hands the cash to you. You aren't having to fight with a bank where you captured your withdrawal at an ATM and then didn't get paid, plus at the supermarket, you can mostly pick a till away from an entrance where someone could be watching you.

  • Thys - 2012-04-27 09:29

    I just wish FNB will stop their boring "Dave"! As if they are the only bank to add the services in the add! They need a new marketing strategy, starting with honesty and creativity!!!!

      Wesley - 2012-04-27 11:53

      Even if FNB is the last bank on the planet, I will not go with them, due to the stupid adverts.

  • Toofaan - 2012-04-27 09:37

    Does anybody know if an objective study has ever been done on South African banks (with numbers) ? I keep feeling that I'm being ripped off, but I also am not sure about the grass being better on the other side. Which is best : FNB, Standard, Nedbank, ABSA etc. ? I'm with standard, but I always hear ads about e-bucks with FNB etc. Is this a for real benefit or more smoke and mirrors ? Apologies - I know it's a silly question, but I'm at technical and not a financial kind of guy.

      Utopian - 2012-04-27 09:46

      Forget the big four, they meet once a month for a planning and policy meeting. They discuss how they can fix fees and lending rates so that they can rip the public off together without stepping on each others toes. Go for Capitec or African bank because at least they try to offer some competitive options.

      colin.dovey - 2012-04-27 09:57

      Here is the result of an INDEPENDENT Survey of the banks: http://www.iol.co.za/business/personal-finance/banking/capitec-is-cheapest-bank-survey-finds-1.1176761?ot=inmsa.ArticlePrintPageLayout.ot Hope that helps.

      DuToitCoetzee - 2012-04-27 11:05

      Of the big 4 FNB came out in top in the last survey that was done by a survey company and I think also Solidarity. I cant remember if Capitec was part of it and I think it was a year to two ago so things could have changed. I hear Capitec is rocking, but you must make sure if it fits your portfolio.

  • RoryKlein - 2012-04-27 09:44

    Your safest bet at the moment is CAPITEC. They seem very TRANSPARENT.

  • randomhero6661 - 2012-04-27 09:47

    the only loving bank is your bed, unless the crooks come to town.

  • ntunjab - 2012-04-27 09:52

    Remember dat Standard bank is now owned by chinese, they will immitate and copy everything they see from other banks.... Corruption is everywhere in S.A happy so called freedom day froma black dude

      Stephen - 2012-04-27 11:15

      chinese eat dogs & use rhino horns,who wants to use a bank that is associated with a culture like that + std banks make more in profits from charges & fees than it does from actual banking business

  • Hugh - 2012-04-27 09:59

    In ntruth we have a government sponsored bank investigation that has come to nought. A political ploy to appease those with short memories that seems to have worked. Then we have the banks that charge near zero fees to get government and provitial business. The rerason why ABSA and the other banks via for ANC deployment. Finally we have this culture of SA banks being a share holder based business. The simplest thing to do is raise your charges calling something that should be a right like a bank balance or internet transaction copy a service to top up the share holder. I have noticed that ABSA have started to charge to accept internet banking payments from other banks at the same rate as cash deposit. A "service charge" that has no reasonable excuse except that ABSA says that it is a service charge. SA is about the only country with a first world banking system that is allowed to get away with these charges. Any other consumer protection angency or Department of trade would stamp on this hard. The UK for example stopped banks from charging a withdrawal fee at ATM's then allowed it if the ATM tranasaction was not a own bank transaction but with the proviso that the costs are clearly displayed. Now how about the government telling us what they 'did for us today' and 'how they like to be our government' or do it for 'today together for tomorrow'

  • sfisopdlamini.dlamini - 2012-04-27 10:07

    Fnb was once found guilty of charging more fees when it comes to blacks, now its adverts are misleading, something is wrong with this bank. But all the banks are misleading. Capitac bank claims to be giving its customers six percent interest if they bank with them, but in reality that is lies. Capitec bank must be investigated as well because it is misleading us.

      DuToitCoetzee - 2012-04-27 11:36

      You are wrong, it is and was risk profiles who get/got charge more. It is a business and if a color is/was a part of that risk it is not a business's fault. Get out of your self claimed pity. I agree with you on banks. They are the cleverest of leaches there is. Investigations are only smokescreens and temporarily to satisfy the public. They are all part of the money power group with their hand on the bladder of all investigators and politicians. ;) They are still a business and even making it difficult to go without it stays our choice.

  • david.vermaak1 - 2012-04-27 10:18

    Ek is so bly dat hulle skuldig bevind is!! Ons sukkel nou al 'n maand met 'n transaksie van FNB. Intussen adverteer hulle dat transaksies binne 10 minute afgehandel word in sekere gevalle. BOG!! Hulle weet self nie wat in hul eie afdelings aangaan nie - een blameer die ander vir hul vrot diens. en na 'n maand toe vra hulle omverskoning want "ons het julle met 'n ander klient verwar wat dieselfde van het as julle!!!!!!!!!!!!!!!) SWAK SWAK SWAK. Vra jy om 'n bestuurder te praat, is daar net NOOIT een beskikbaar nie. Ek vertrou een van FNB se bestuurders lees hierdie comment en kontak ons.

  • justin.pretorius - 2012-04-27 10:20

    HHEHEHEH...I have been a customer of SBank and I have never heard of anything truly free from them

  • bluzulu - 2012-04-27 10:22

    Banks = Legal Organized crime....

  • thabo.manganye - 2012-04-27 10:35

    growing up i used to think that when you put your money into the bank, you get interest later little did i know that these institutions are the only legal thieves. you deposit 10 000 when you want to withdraw it, you only get 9 650 eish.

  • Sello Jacky Majadibodu - 2012-04-27 10:37

    Capitec, is the best

  • Burtfred - 2012-04-27 10:39

    Maree of Standard earned R37 mil this year and RMB's Pullinger earned R23.5 mil. Absa's Ramos was payed R20.7 mil. That's why they have to charge so much for their "products"

      David - 2012-04-27 10:42

      How does Ramos justify R20.7 mil while Absa are letting staff go to cut costs??

  • George - 2012-04-27 10:40

    Standard Bank complaining about anyone...? hell no, they are worse

  • Mirus O'kelly - 2012-04-27 10:41

    ek moet ook se Capitec is die beste, hulle diens is niks anders as uitsteekend nie.

  • Chris - 2012-04-27 10:43

    Ian 100% right,criminals deluxe,almost as bad as doctors...!

  • cliff.slabbert - 2012-04-27 11:12

    Bare faced liars and thieves!

  • tony.kirby1 - 2012-04-27 11:17

    With my bank I get a few "free" things. Because I am over 58 years old, have invested R10,0000 in a certain investment and so on. Not that advertise these services, I heard about it from a friend. Bank charges nice and low.

      Inja - 2012-04-27 11:32

      Rather invest your R100 000 with the RSA Retail Bonds, no fees and you are guaranteed a 7.25% interest.

  • simakoko - 2012-04-27 11:37

    Absa is the worse of them all

  • Awniea - 2012-04-27 11:39

    Does anyone know if any banks are locally owned? I want to close my ABSA account with all the stuff they are busy doing, especially the staff treatment. I would like to pick a bank that as keeps as much of all these bank charges and revenue within our economy. Any advice will be appreciated. Thanks

      Morné - 2012-04-27 11:49

      Capitec are local ,as far as i know, but probably also AfricaBank.

      bigstanrevolver - 2012-04-27 12:57

      Capitec is 100% owned by a white south african in the Western Cape... African bank is a credit bank (loans, credit cards, etc) and is too SA owned!

  • don.ruffels - 2012-04-27 11:48

    @ Margie and others, I banked 15 +- years with Nedbank, but Capitec offered me much better debit order and other rates that I could not refuse their offer;so I moved over to them. When quering my fees with a bank official at the enquiry counter of the high fees I paying, I was told that, "that was the fee", I said to him, "then I must change to Capitec". The reply was, Capitec is not a bank...!!!" So I immediately decided to move to Capitec and am very very happy with my decision. I know that banks have to charge fees. But at least be reasonable in the charges. Less sponsorships, less big expensive banking halls etc.

  • ellena.miya - 2012-04-27 13:42

    I am a student and the fees that standard bank charges me are ridiculous. FNB is no better. Seriously considering banking from under my mattress!

  • Brian.Irlam - 2012-04-27 20:49

    Amazing,my FNB branch is great but,they want me to convert to emailed statements,which means they save costs on paper printing and ink etc bu they are not willing to reduce my bank fees and charges if I do.Been banking with FNB for last 14 years never had many problems or issues never got charged for posted statements originally was all part of my monthly bank charges.Now all of a sudden I am charged an additional R9.50 for value added services without any apparent added value ? Now go figger.

  • Philemon - 2012-04-28 06:23

    At Capitec you know exactly what you pay for as you are totally in control of your own account, now that's what I call real banking.

  • Lisa - 2012-04-30 07:56

    that's why i'm glad to be with Nedbank :)

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