The recent Competition and Fair Trading Commission (CFTC) Meeting studied 72 cases, in accordance with Section 8 of the Competition and Fair Trading Act. One of the cases involved a K500,000 fine to Standard Bank Malawi for “engaging in unconscionable conduct in the trade of goods and services” according to a statement signed by CFTC Executive Director James Kaphale.
According to the statement dated 5th March, an investigation which the Commission conducted showed that the Bank opened interest earning Contract Save Accounts for a number of customers. However, upon maturity of the contracts, the bank did not pay any interest thereby causing distress to consumers. “This was despite several complaints raised by concerned consumers. The investigation further established that the bank engaged in deceptive misleading advertising when it stated that the interest rate for the contract save account would be 8% when in fact they meant 8% per annum.” says part of the statement.
In resolve, the Commission ordered the bank to clearly indicate the interest rate regime on their information materials. The Bank was also advised to conduct more sensitization of its customers on financial literacy.