Abstract
The purpose of this study is to determine which circumstances, if any, allow for a credit transfer to be reversed. Currently, one may request their bank to reverse a credit transfer only if there is consent from the beneficiary who had errenously benefitted from such transfer.
Such an analysis is required given that tangible money has gradually become phased out due to modern trends and the convenience at which online banking can be done. While electronic transactions are beneficial to all consumers of financial products and services, there is an ever-present risk that one might make an erroneous transfer of funds or fall victim to fraud by way of unauthorised credit transfers or by one gaining access to their online bank account profile.
Currently, this main issue surrounding the regulation of credit transfers is a lack of specific legislation. While certain acts do provide general provisions, there is an absence of specific legislation regulating the reversal a credit transfer and the circumstances under which this may occur. As such, disputes will usually be subjected to civil proceedings and precedents set previously. The issue is that relying on judgements in past cases may not always provide the most just and equitable outcome.
Therefore, this study will analyse the current legal situation surrounding credit transfers and the reversals thereof as well as possible amendments which can be made to better the situation going forward. Special attention will be paid to other jurisdictions to determine if South Africa can adopt laws and regulations from other certain jurisdictions to align itself to the international best practice on the matter.