The South African FSB has warned the public against CZZ General Industry (Pty) Ltd operating in Eersterust, Pretoria.
The Financial Services Board (FSB) said it received a tip-off that CZZ General Industry (Pty) Ltd has informed members of the public that it is duly licensed as a Financial Services Provider.
The FSB said the company purports to assist members of the public to claim pension surplus benefits due to them as a result of their service with companies in the motor manufacturing industry. The company also alleges that it can assist former members of pension funds that are not satisfied with the pension pay-out received when membership with the pension fund was terminated.
The regulator said it is warning the public against C.Z.Z General Industry Pty Ltd as it is not a registered Financial Services Provider nor is there any agreement with the pension funds in the motor manufacturing industry for the company to be assisting in any manner with pension surplus benefits or any other benefits.
- The FSB described the modus operandi of C.Z.Z General Industry as:
- It was reported to the FSB that C.Z.Z General Industry Pty Ltd
- Only requests the copy of an identity document from a member seeking assistance whereupon the monies that are allegedly due to the member appear.
- The member is required to pay an amount of R1 500.00 to claim his benefit and a further R2 000.00 once the benefit has been received.
The waiting period for an alleged pay-out range from 6-18 months. While a person who believes that he or she is entitled to an unclaimed benefit or unclaimed surplus may ask another person to assist him or her to claim it.
To set the record straight, the FSB said the following people legitimately charge for providing such assistance:
- authorised financial services providers;
- tracing agents that have an agreement with the pension of provident fund; and
- attorneys, with a proper power of attorney signed by their client.
The Financial Services Board again reminds consumers that the Registrar of Pension Funds’ office assists members or beneficiaries in tracing unclaimed benefits by liaising with the applicable funds and/or their administrators. The FSB does not charge a fee for this service.
Pension and Provident funds may not charge a fee for assisting their members to claim the amounts due to them. The FSB requests the public to exercise caution when dealing with unregistered tracers.