6 Costly mistakes SA consumers should avoid today

Here’s something many cellphone owners don’t realise - if your cellphone is insured by your cellphone service provider’s insurance arm, your stolen phone claim will only be paid out if your contract SIM was in the contract phone at the time of the theft or loss.

If you’ve put another SIM into your contract phone, it will be rejected.

2. Assumptions can be costly

 Assuming that things work based on your past experiences - or those of others - and thus not taking time to check the terms and conditions gets a lot of consumers into trouble.

Don't let someone borrow your car to nip to the shops, assuming that your insurer will cover a crash claim - some policies stipulate that only those listed on your policy are covered.

Nadine assumed that all Tsogo Sun hotels include the group’s famous breakfast buffets in the rate, and then was most put out to discover at check-in that the two-star Hotel Perte at Montecasino does not.

 3. When the guest turns out to be a thief

 A warning for property owners renting out their units for short stays via booking.com:

A Gauteng couple took a R950 booking from a man last month for the next day, and then sent him information on how to gain access to the complex as they routinely do.

That 'guest' went on to strip the place of R50,000 worth of appliances and furnishings, in just 43 minutes, including the gas stove, oven, washing machine, dishwasher, rugs and ornaments. 

Booking.com has warned owners to only accept bookings from people who have a Booking.com booking history and can provide an address and verified phone number.

4. When you 'upgrade' your cell phone, make sure you upgrade your insurance policy too

If you have cellphone insurance via Vodacom or MTN, are you absolutely sure that it covers your current phone?

Many people have discovered that when making a claim that their old phone is listed, hence, no payout.

In Sally’s case, after being held up at gunpoint while cycling and robbed of her cellphone, she put in a claim and was told that her old iPhone 8 is insured, not the iPhone 14 she got on contract two years ago.

Don’t assume the cellphone company has automatically updated this crucial info for you. Check!

5. Watch out for pre-selected options

John wrote:  “I recently booked a ticket for a domestic flight via an online travel agency, and found that I had been charged for two items I had not requested. Apparently the items are pre-selected and when completing the form and the onus is on the purchaser to deselect if not required. Is this legal?”

No. Section 31 of the Consumer Protection Act states that: “A supplier must not…induce a person to accept any services or to modify such an agreement on the basis that the modification will automatically come into existence unless the consumer declines such offer…”

In other words, a consumer shouldn’t have to actively decline a product or service - in this case, by unticking a box - failing which they are charged for it. 

Definitely something to watch out for.

6. Beware the investment impersonators

Hundreds of South Africans have been tricked into investing in ill-advised schemes by AI-manipulated deepfake videos of famous figures such as Elon Musk, as well as local investment gurus.

While many will easily spot that the videos are a bit off - lip synch not 100%, the accent not quite there, dodgy video quality - many people, especially those not very tech savvy, fall for them.  And they are getting better all the time.

If the approach comes via email or WhatsApp, also be highly suspicious and interrogate the content very carefully

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