I'm pretty pissed about how they handled this whole thing. I didn't even find out about it until I happened to see that my account had a negative balance in the Discovery Bank app.
Then I went to check my emails to see how EE communicated this, and it looks like the first time it was mentioned was 31 October, which smacks of a rushed decision. They haven't updated their terms and conditions. Nor have they updated the section about fees in their help/knowledge base, which still says the following:
"EasyEquities prides itself on not charging the usual fees traditional brokers do. There are no registration fees, no minimums required, nor monthly platform fees."
I know it's only R25 and that you can get around it. The way they did this just pisses me off on principle.
I suspect calling it a loyalty program is their way of trying to sidestep the fact that under the 2020 amendment to the FAIS General Code of Conduct for FSPs (Section 3A) they're only allowed to charge us fees for financial services if:
"(aa) the amount, frequency, payment method and recipient of those fees and details of the services that are to be provided by the provider or its representatives in exchange for the fees are specifically agreed to by a client in writing; and
(bb) those fees may be stopped at the discretion of that client".
Either way, wouldn't the way they broke the news in what was essentially a marketing email (which I'm sure a large percentage of their clients never even opened) count as negative option marketing under the CPA?
i.e.
(a) promote any goods or services;
(b) offer to enter into or modify an agreement for the supply of any goods or services; or
(c) induce a person to accept any goods or services or to enter into or modify such an agreement,
on the basis that the goods or services are to be supplied, or the agreement or modification will automatically come into existence, unless the consumer declines such offer or inducement.
(2) An agreement purportedly entered into as a result of an offer or inducement contemplated in subsection (1) is void.
(3) A modification of an agreement purportedly agreed to as a result of an offer or inducement contemplated in subsection (1) is void.
Any expert opinions?
Then I went to check my emails to see how EE communicated this, and it looks like the first time it was mentioned was 31 October, which smacks of a rushed decision. They haven't updated their terms and conditions. Nor have they updated the section about fees in their help/knowledge base, which still says the following:
"EasyEquities prides itself on not charging the usual fees traditional brokers do. There are no registration fees, no minimums required, nor monthly platform fees."
I know it's only R25 and that you can get around it. The way they did this just pisses me off on principle.
I suspect calling it a loyalty program is their way of trying to sidestep the fact that under the 2020 amendment to the FAIS General Code of Conduct for FSPs (Section 3A) they're only allowed to charge us fees for financial services if:
"(aa) the amount, frequency, payment method and recipient of those fees and details of the services that are to be provided by the provider or its representatives in exchange for the fees are specifically agreed to by a client in writing; and
(bb) those fees may be stopped at the discretion of that client".
Either way, wouldn't the way they broke the news in what was essentially a marketing email (which I'm sure a large percentage of their clients never even opened) count as negative option marketing under the CPA?
i.e.
- Negative option marketing
(a) promote any goods or services;
(b) offer to enter into or modify an agreement for the supply of any goods or services; or
(c) induce a person to accept any goods or services or to enter into or modify such an agreement,
on the basis that the goods or services are to be supplied, or the agreement or modification will automatically come into existence, unless the consumer declines such offer or inducement.
(2) An agreement purportedly entered into as a result of an offer or inducement contemplated in subsection (1) is void.
(3) A modification of an agreement purportedly agreed to as a result of an offer or inducement contemplated in subsection (1) is void.
Any expert opinions?