Cape Town: S118 Automation of Refunds – Errors in Applications
An unusual and unacceptably high number of automated refunds for the final account(s) of the seller as part of the S118 process are being returned by the financial institutions due to incorrect banking details.
The most common error is the incorrect account type where one submits the account type as a cheque account when it should have been a savings account. Firms therefore need to ensure that their staff capture the correct account type when submitting the S118 application.
If the situation does not improve, the City will have to enforce the rule again of providing confirmation of banking details which is a step it would prefer to avoid, as it adds an additional burden of submitting unnecessary documentation.
Unfortunately rejected refunds cannot be processed again and your clients will have to follow the cumbersome manual process of logging a call via the Corporate Call Centre (0860 103 089) Option 1 or going to one of the Walk in Centres and with all supporting documentation. Where an email address was submitted with the application, firms or their clients will be notified accordingly.
This is very interesting as the instruction to process refund form issued on the software does not ask for the nature of the account to be supplied.This might be the reason for the returns. However, it boggles the mind that in this day and age the banks should distinguish between whether an account with a distinctive number is a cheque or a savings account when processing deposits.