In June, 2019, CFTC commenced investigations against Nedbank Ltd following allegations of unconscionable conduct.
It was alleged that a customer was deducted MK11,500 from his Nedsave account which he believed did not have monthly charges. When he sought clarification from the Respondent, he was informed that the bank had changed its policy and introduced a monthly fee charge to all Nedsave accounts with effect from 28th March 2018.
The Complainant alleged that he was neither informed of the changes nor given a choice to maintain the accounts under these new conditions.
Investigations found that the Complainant’s account was reclassified by the Respondent without his knowledge or consent.
The Respondent’s conduct was thus unreasonable, unfair, without conscience and a violation of Section 43(1) (g) of the CFTA.
The Commission deliberated over the case and resolved that the Respondent should pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000) and also pay the service fees to the account of the Complainant and other customers with interest calculated up to 31st May 2021.