Avoid scams that drain your cash and peace

1. Avoid buying tickets from Viagogo

Petro of Everton bought four tickets online for the Bryan Adams concert in Durban next April. “Everything looked legit until I made payment - more than R7,400 - and got an email telling me that the tickets will only be released two hours before the event starts. And only the block is mentioned, no seat numbers,” he said.

Oh dear. Legitimate ticket agents, Big Concerts, consider tickets bought from unauthorised agents or third parties as invalid.

To make matters worse, it seems Petro paid double what the tickets are being sold for by Big Concerts. Viagogo says it will refund if their tickets are not accepted at venues, but you have to be able to prove that by turning up with those Viagogo tickets in order to qualify for a refund.

The lesson: Viagogo usually pops up as the first result if you’re searching online for event tickets. Always check the url (website address) before committing.

2. About paying deposits to contractors

It has become the norm in the home improvement industry for service providers to ask for a large upfront deposit of up to 80%. That doesn’t leave you with much leverage. They argue that they need to buy goods for the job up front. 

One way to get peace of mind is to pay the supplier of those goods directly. Ask the contractor for the name of the supplier and what they need. If the contractor refuses, you’d be wise not to go ahead with the contract.

3. Avoid those tests that come up on Facebook 

I’m sorry to say this, but if you’re invited to do some kind of test on social media, please just scroll on by, no matter how tempted you are.

Never submit a selfie to find out what hairstyle or colours suit you best. The image of your face is a biometric form of verification; you need to protect it as much as your signature, thumbprint and passcodes. 

Margie did a memory test which popped up on Facebook, and was happy to pay the advertised R35 for it. But a week later, another R541 was charged to her card.

I’m guessing there was something about a subscription that she missed in the small print.

Cancelling such subscriptions with a foreign-based company can be a nightmare.

Again, avoid!

4. Sounds appealing, but that payment holiday on car payments comes with expensive strings

A four-month car payment holiday is not the great deal you’re supposed to think it is, because interest starts accruing from the moment you sign that contract and drive off.

That deferred interest is added to your total loan amount, meaning you pay more overall. The banks are simply capitalising the interest for later, not giving you a "free" period. The total cost of the car significantly increases, potentially leading to higher monthly payments or a longer loan term. For example, a R300,000 loan at 12% could add approximately R12,000 in interest before payments even begin, making the car ultimately more expensive.  

5. The dealership is finally taking back the dud car they sold you. Can they deduct an amount for depreciation?

In a word, no. However, I’m mentioning this because quite a few people have told me that when they’ve insisted that a dealership take back their problematic car, they are warned that they won’t get much of a refund because depreciation and usage will be deducted.

That’s only half true. Yes, the Motor Industry Ombud does condone the deduction of usage, based on mileage done and the type of car. 

Ombudsman Johan van Vreden says: “There is no such thing as depreciation in our usage calculation. In the event of a 'take back,' the consumer must be placed in the same position as before the purchase minus the cost of usage, which may not include depreciation.”

There you have it. I hope the dealerships are taking note!

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