Clientèle has taken legal action against the Payments Association of SA (Pasa) in the Johannesburg High Court to prevent clients from declaring false disputes to reverse monthly debit orders. Clientèle argues that the current rules governing debit order reversals infringe on its constitutional property rights because many debit orders are reversed before the company has a chance to prove the validity of the payment mandate. Clientèle’s data shows a significant increase in the number of valid mandates being disputed, leading to substantial monthly reversals, allowing clients to enjoy a month of free cover. The company is challenging the constitutionality of the rules that permit reversals within 40 days of a dispute being declared, calling for a change that allows it to validate mandates before reversals occur.
