If your bank account is being debited with premiums for insurance that you did not apply for complain loudly!
Personal Finance tackled the banks after a reader complained that Standard Bank had planned to debit her account with premiums for credit life insurance on a personal loan without her permission.
The reader was sent a letter in September telling her an "inexpensive Personal Loan Protection Plan" would be used to cover her loan and the premiums would be "debited directly" from her account each month, unless she told the bank she did not want the insurance.
Questioned by Personal Finance, Standard Bank said its policy on "negative response marketing" (where unless you decline an offer, you are assumed to have accepted it) had now been reviewed.
The other three big banks First National, Absa and Nedcor all say they do not use this technique.
Len Schutzler, Senior General Manager, Retail Distribution at Standard Bank, says the letter our reader received from the Rondebosch branch was part of a marketing initiative by the bank.
"Very few of the many thousands of customers offered the plan, have declined it.
"Those who have declined had the plan cancelled and their premiums reversed."
"We have, however, recently reviewed the way it is being marketed and have instructed branches not to use negative response marketing, which is not well regarded," he says.
Credit life insurance pays out a sum of money to cover a debt in the event of you dying or becoming disabled. This sort of insurance can be useful, especially if the amount you owe is large.
It is a way to prevent a large chunk of your estate going towards settling debts so that you can leave more for your family at your death.
Some of the products on offer are probably good value.
But you have a right to choose the product you want and not to have it forced on you.