Latest news with #CheslynJacobs
The Citizen
31-05-2025
- Business
- The Citizen
Your money, your rules – these are your banking rights
Your banking rights are protected by the Code of Banking Practice compiled by the Financial Sector Conduct Authority. When you pay your money into your bank account, your money remains yours and therefore you should have rights attached to your money and your bank account. Having a bank account is not just about keeping your money safe but about having financial security, making payments easily and accessing services that improve your life. In short: your bank owes you. Banks are required to treat all customers fairly and cannot discriminate based on income, gender, race or background. However, despite these regulations, many consumers continue to face challenges in accessing financial services due to high costs and complex requirements. Therefore, Cheslyn Jacobs, chief commercial officer at TymeBank, says you should understand your rights as a consumer when it comes to banking. 'Understanding your rights helps you to make informed choices and ensures that your bank treats you fairly. It allows you to confidently navigate banking services, question unfair charges and take advantage of the benefits and protections available to you as a customer. 'When you know what to expect, you can make financial decisions that best serve your needs and long-term goals.' The Code of Banking Practice guides how banks should treat you. The Financial Sector Conduct Authority (FSCA) also ensures compliance with the code. Jacobs says these rights include: Your right to a bank account You have the right to open a bank account, provided you meet some basic requirements, such as proof of your identity, proof of residence and sometimes proof of income. You may also need to provide a minimum opening deposit. ALSO READ: FSCA finds banks do not handle consumer complaints properly Your right to clear information about bank charges It is important to know the costs associated with your account, Jacobs says. Banks are required to clearly explain all fees, charges and interest rates before you open an account. Always ask for a list of all costs upfront, check your bank's website and regularly review your bank statements. Your right to switch banks If you are unhappy with your bank's service, fees, or policies, you have the right to move your money to another bank. Jacobs says it is easier than ever to switch banks. 'Compare options and choose a bank that offers affordable, transparent and secure banking when you switch.'. ALSO READ: FSCA to investigate banks charging different amounts for the same product Your right to have your privacy and security protected Your bank must protect your personal and financial information and cannot share your details without your consent unless required by law. However, Jacobs points out, safeguarding your financial security is also your responsibility. 'To protect yourself, always use strong, unique passwords for online banking and enable two-factor authentication where possible. Be cautious of phishing scams and never click on suspicious links or share your banking details over the phone, email, or text unless you are 100% certain of the recipient's identity. 'Regularly monitor your bank statements for any unauthorised transactions and report them immediately. When using ATMs, be aware of your surroundings and shield your PIN entry. If you lose your card or suspect fraud, notify your bank as soon as possible to block unauthorised access. By staying vigilant and following these steps, you can help keep your financial information secure.' ALSO READ: FSCA fines African Bank R700 000 for misleading advertising [VIDEO] Be on the lookout for fraud and stay aware According to the South African Banking Risk Information Centre (Sabric), an organisation that works with banks, law enforcement, and regulators to combat fraud, nearly R3.3 billion was lost to fraud in 2023. Digital banking fraud increased by 45%, and banking app fraud by 89%. 'Criminals are using advanced technologies, and therefore it is important to stay informed,' Jacobs says. Look out for a bank that offers security features such as: Biometric verification that protects you against identity theft. DebiCheck, which allows you to approve transactions before money is deducted. Multi-factor authentication by using a One-time PIN (OTP) to verify transactions. Security updates must be done regularly to protect your account against fraud. Tips and updates via various communication channels, including SMS, social media and email on how to protect your money. ALSO READ: Consumer Protection Act and your rights How the Consumer Protection Act adds to your banking rights The Consumer Protection Act (CPA) protects you from unfair treatment, misleading information and hidden fees from your bank. It ensures you receive fair and transparent financial services. Jacobs says if your bank fails to meet these standards, you have the right to take action to protect yourself and hold them accountable. He says when you have a problem with your bank, you must start by trying to resolve your complaint directly with the bank, as the Code requires all financial institutions to have internal dispute resolution processes. 'Clearly outline the issue, provide any supporting documents and request a formal response. If the bank does not resolve your complaint satisfactorily and you believe you have been treated unfairly, you have the right to escalate the matter.' If you believe that your bank did not comply with the CPA, you can approach the National Consumer Commission (NCC) for complaints about unfair business practices, such as misleading advertising or hidden fees. ALSO READ: Financial service provider giving you problems? The NFO can help Other regulators that can help to protect your banking rights The National Financial Ombud Scheme South Africa (NFO) is an independent organisation dedicated to resolving consumer complaints against financial service providers, including banks, credit providers and insurers. Their services are impartial, confidential and free of charge. You can visit the NFO's website to lodge a complaint. Concerns related to financial advice or investment products can be investigated and mediated by the Ombud for Financial Services Providers (FAIS Ombud). Jacobs says these regulatory bodies have the authority to enforce corrective action, ensure that consumers are treated fairly and that banks comply with consumer protection laws. 'By taking these steps, you can assert your rights, seek fair treatment and contribute to greater accountability in the financial sector. 'Many South Africans do not realise they have banking and consumer rights. Understanding these rights helps you to make informed choices and protect yourself from unfair treatment or fraudulent activity.'
The Citizen
17-05-2025
- Automotive
- The Citizen
Is it still worth buying a car?
You can even buy a car online and have it delivered to your house. The question is if you really still need a car in 2025. Our lives have changed significantly in the past few years. We can work remotely, shop remotely and bank remotely. Apart from going on holiday and taking the children to school, most of us could almost get along without owning a car. Is it then still worth it to buy one? We live in an era of ride-sharing apps, remote work and growing environmental concerns, which makes the once-straightforward decision to buy a car trickier than parallel parking in peak traffic, Cheslyn Jacobs, chief commercial officer at TymeBank, says. 'Across South Africa, new and used cars sport price tags that have many consumers questioning whether the traditional milestone of car ownership is still attainable and, more importantly, if it makes financial and practical sense.' ALSO READ: Buying a car? Keep this in mind Car ownership: status symbol or financial strain? Jacobs points out that the cheapest entry-level new car in today's market starts at approximately R178 000. 'The numbers are not encouraging. Yet, even with rising interest rates and fuel prices, the long-held aspiration of owning a vehicle remains a compelling choice for many. And it is about more than getting from point A to point B. 'Let's be honest. South Africans are often not the pragmatic type when it comes to buying a car. We all want to make a statement of our personality, our financial might or our social status. We want to rev our new cars or dominate suburbia with our 4x4s.' However, he says, to show financial maturity, you must buy a car with your head, not your heart. 'Your choice of transport should be dictated by your needs. Ask yourself: how far do you drive every day? Do you drive on highways, suburban streets or gravel roads? Do you expect to grow your family in the next few years? 'These questions will help you pick a car that matches your lifestyle – if you need one at all.' ALSO READ: Here's why you should – and why you shouldn't – buy a new car If you do need a car, what are your options? Jacobs says if your lifestyle demands that you have a car, the general rule is that you should not spend more than 20% of your total income on car repayments. 'For buyers unable to pay cash there are several financing options, each with distinct advantages (and disadvantages). Vehicle asset finance that some banks and dealerships offer typically provides competitive rates since the car serves as collateral. 'If you have an existing home loan you could consider accessing your home equity to potentially benefit from even lower interest rates. Personal loans also offer flexibility and the ability to buy from private sellers but usually carry higher interest rates.' Jacobs emphasises how important it is to understand these terms and conditions of each option to ensure you make an informed decision: ALSO READ: Need a new car? These are the payment options available to you Paying with vehicle asset finance Understand the terms and cost of the loan. The car may be priced at R100 000 but that number increases exponentially, depending on your interest rate. Understand what happens if you fail to repay your loan. The car belongs to the bank/financing house until you have paid it off in full. Remember to factor in car insurance, as most lenders require comprehensive insurance for the duration of the loan. This protects you as well as the lender in case of accidents or theft. Consider saving for a large deposit to reduce the monthly repayment costs. Be wary of balloon payments due to the large fees payable at the end of your term. ALSO READ: 1.9 million people qualify for car financing but do not use it Paying for your car through home loan financing This option requires careful consideration, as adding car debt to your home loan means your home serves as collateral for both loans. Another consideration is the impact it will have on your home equity. Using your home loan to finance a car reduces the equity in your home. This can affect your ability to borrow against your home in the future and may affect your financial flexibility. Finally, if you decide to use your home loan to finance your new car, it is wise to aim to repay the loan within 48 months to minimise the interest costs and ensure you do not extend the debt over a longer period, which could affect your financial stability. ALSO READ: What you need to know about personal loans Paying for your new wheels through a personal loan Before taking out a personal loan for a car, there are several critical steps you should take: Shop around for the best loan terms by getting quotes from multiple banks and lenders. Compare loan fees, interest rates and monthly payments. Calculate what percentage of your monthly income would go to car expenses. Financial experts recommend keeping total car payment costs under 15-20% of your take-home pay. Consider certified pre-owned cars which often cost less. Research the best time of year to buy when dealers offer discounts. 'Before diving in headfirst, first make sure you are financially ready. This includes reviewing your credit score and report before applying for finance, addressing any credit issues that could lead to higher interest rates, calculating your debt-to-income ratio to ensure you qualify and building up an emergency fund before taking on car payments.' Jacobs warns that you must ensure that you completely understand the expenses involved, including insurance, service and unexpected repairs. 'Finally, you must consider the impact of a car loan on your other financial goals, such as further education or pursuing that dream of overseas travel.'
