/ 5 February 2007

Must customers gag themselves?

A reader asks:

Do you think it’s reasonable that the complaint form for the ombudsman includes the clause:

‘(k) I acknowledge that I may not publish any of the details of my complaint in any form of media and that the Ombudsman may, in his/her sole discretion, decline to continue any investigation if, in his/her opinion, such publication were detrimental to the investigation in any way.”

This seems to be a sort of pre-emptive voluntary gag order.

Monique Pillay, Community Marketing Officer for the Ombudsman for Banking Services replies:

I can confirm the following:

The office of the Ombudsman for Banking Services (OBS) offers bank customers an inexpensive and effective alternative to going to court.

This office is not a substitute for a court, although it does have the power, derived through a contract, to make binding determinations. The OBS’s procedures emphasise mediation and conciliation. If this were not so, it would not be possible to deal with high volumes of complaints speedily and inexpensively.

In Dispute Resolution, Paul Pretorius says the aim of mediation is to ‘facilitate a meeting of the minds of the parties”. He says: This confidentiality rule is perhaps the cornerstone of mediation” and ‘this ground rule is designed to encourage parties to explore options for settlement without fear that such explanation may rebound upon them at a later stage, for example in press statements, litigation or arbitration proceedings”.

A bank customer is not denied the right to complain to the media. If he or she believes that that will be the most appropriate manner to resolve the dispute or grievance, he or she is free to go to the media.

The legal principle of election also applies — a party with various remedies open to him or her must choose one (court arbitration, mediation, an ombudsman or media pressure).

Once a matter is finalised by this office, a complainant is free to go to the media. If a matter escalates in our process, to a formal binding, determination, the picture changes. The full details of such decisions, must, in terms of our rules, be reported publicly which we do, in our annual reports or through media releases/statements.

To answer the question of your reader, it is the process that is protected, rather than the parties.

One of the factors that weighs upon the mind of the bank representative at mediation is that if the mediation fails, the other party may go to the media. If that arrow has already been fired, so to speak, the bank may become even more entrenched in its stance.

Regarding informing the public on banking complaints we’ve received, we continuously send out media statements, have a document entitled ‘Tips for consumers” on our website, and conduct national road shows to educate and empower consumers.

Note from the editor: The important point here is that the complainant can go to the media once the case has been settled

Cut that electricity bill

M&G Money, in conjunction with Metropolitan Odyssey, is running a competition for the best savings tip of the month. Savings start not with putting money away but with finding ingenious ways to cut expenses. The reader who sends in the best tip for next month will win a black, leather-bound 512 MB USB memory stick with detachable lanyard, valued at more than R300.

Please submit your tips to

[email protected]

, or fax to 088 011 883 9496, or write to PO Box 91667, Auckland Park 2006. After all the electricity blackouts we have experienced it is probably not surprising that this month’s savings tips had readers highlighting ways to save on electricity:

This month’s winner is Makwatse Kagisho Maesela:

Hard-earned money drips away with leaking taps, Why not fix them? Why bath when you can shower? You can save more than 7% on your energy bill.

A geyser with a high thermostat setting wastes hard-earned cash. Turn it to 60C. You will experience no discomfort and still have a piping-hot shower.

Do you use the hot tap for small amounts of cold water? Why not use the cold tap and pay less?

Your geyser is constantly losing heat to the surrounding air. Why pay this waste? Insulate the geyser additionally and the first 105m of the outlet pipe. You can even use newspaper as insulation.

Is the heater on while you are asleep? Rather use warm or electric blankets and pay less for the same comfort.

Why heat a room when it is unoccupied? Rather spend the money on yourself than on Mr Nobody.

A tumble dryer does not only dry your clothes, it also dries up your bank account. Why not let the sun dry your clothes when possible? It is free!

Amsha Sohawan, of Ethekwini municipality, also has some tips on how to save on electricity bills:

  • Lower the thermostat level on your geyser to 45C to 50C
  • Install a solar panel system linked to your geyser and the geyser can be switched off on very hot days, which will cost a lot initially, but will save you money over the years.
  • Turn off your geyser when you go away on holidays.
  • Use a gas stove instead of an electric stove to cook food that requires to be on a stove for a long period , such as rice, beans and samp.

Editor’s note:

I never realised how much electricity a tumble dryer, washing machine and geyser used until I compared our electricity bill with a friend’s.

We have a household of six people compared to their household of two people, yet they consume more electricity.

We compared notes and there were three differences: they use a tumble dryer; they do daily small wash loads in the washing machine while we do two large washes a week; we have a timer on our geyser so it is switched off during the day. Based on their consumption, we have probably halved our electricity bill.