On 6th May 2020, CFTC launched investigations against Mybucks Banking Corporation for allegedly engaging in unconscionable conduct following several consumer complaints.
One Complainant alleged that, since the acquisition of Nedbank by the Respondent, he had not been able to perform any ATM transactions allegedly due to the Bank’s system failures. In the absence of the ATM facility, he was being forced to perform “physical” bank transactions, at a fee of MK200.00. Ordinarily, they would have been refunded MK50 which is the difference between the MK200s they paid and the MK150s they would have paid if they had used ATM cards.
CFTC investigated the matter under section 43(1)(g) of the CFTA and established that the Respondent was indeed charging a fee on balance enquiry. By demanding a balance inquiry fee of MK200 for transactions made in banking halls when the Bank’s ATM solutions and other online service delivery channels were not operational, the Respondent’s conduct was unconscionable; in contravention of Section 43(1)(g) of the CFTA.
Following deliberations, the Commission resolved that the Respondent should pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000.00) for engaging in unconscionable conduct.