Many collection facilities exist that provide collectors with the ability to collect money from consumers by merely submitting to the relevant bank an account number, branch number and the amount to be collected.
This procedure leaves the door wide open for human error as well as deliberate attempts at fraud. Even though the consumer is protected by various measures put in place by the banks, collectors have a definite responsibility to ensure that consumers are properly informed regarding such transactions.
Dex IT, which collects vast amounts of money each year on behalf of its clients, has implemented an ingenious SMS notification process by which consumers are pre-notified of imminent collections. This is not only to protect consumers from fraudulent transactions, but also to ensure that the consumer is aware of and informed about intended deductions from his bank account.
(Example of an SMS sent on collection two days prior to actual deduction: "Mr Joe Block, herewith confirmation that the amount of R1 350.55 will be deducted from your bank account for your insurance premium with ABC Insurers. Contact your ABC broker if any problems on (011) 333 1234.")
Any notification of unexpected or unauthorised collections can be followed up by the consumer and stopped prior to possible fraud being committed. By informing the consumer in advance of the amount to be deducted, the consumer can ensure that sufficient funds are available and thus avoid unnecessary costs owing to rejections.
(Example of an SMS sent as soon as RD lists are received from the bank electronically: "Mr J Jones. Your motor insurance premium was returned unpaid for November 2004. Please contact your broker on (011) 333 1234. Your policy number 077/12345.")
This service, which is sold as an added benefit to clients, is beneficial to the collector as well, because the collection ratio is significantly improved.
The system has three options. Firstly, it enables the sending of a notification on every collection. The second option is to send a notification on the first collection, and thereafter only if the amount to be collected changes. The third option is to send a notification only on re-collection in case of an unsuccessful collection at first attempt.
A return number as well as a reference number are provided with every SMS, allowing the client to contact the collector or to query or stop an incorrect transaction. Initial runs have proved to be very successful.
From the consumer`s point of view there are no more unpleasant surprises in his bank statement at the end of the month.
Dex IT is currently working on an approval process for the future whereby only transactions approved by the client will be sent for collection. This way the consumer will be in full control and authorise every deduction personally. This will eliminate the ability to fraudulently deduct money from an unsuspecting consumer`s bank account.
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