Should you be worried about Standard Bank recycling account numbers?

Did you know that Standard Bank has a long-standing policy of recycling account numbers?

Wendy Knowler picks up on this since the bank emailed its clients last week about some updates, which included adding a clause on old account numbers, to their Terms and Conditions (Ts and Cs).

“Clause 14.3 has been ADDED to notify you of the reallocation of closed account numbers."

Why not simply include the clause itself in the email for ease of reference? Knowler asks.

The consumer ninja then went looking for the relevant clause, and she highlights that it includes the following:

"We are not responsible to you for any losses you may suffer if we reallocate your account number and you did not notify everyone who needs to know of the change in your banking details."

Standard Bank Ts and Cs clause

When she shared this info on X, many consumers reacted with disbelief, she reports.

One comment read: 'How are they allowed to do that because clearly there will be a lot of bad consequences for both the new account and old account holder.'

Someone else related a story of this policy backfiring, when her boss neglected to change his bank details on a policy and it was paid into his old bank account, which now belonged to another bank client.

Knowler asked - as others were too - why Standard Bank chose to include this in its Ts and Cs now, when the practice is not a new one.

In its response, Standard noted that it has always included the right to re-allocate bank account numbers in its General Ts and Cs, and the update was sent to customers to communicate new additions.

What was not communicated, Knowler says, is that the re-allocation cannot happen within three years

This is Knowler's advice: If you closed your Standard Bank account more than three years ago, make VERY sure that any person or company which owes you money or wants to gift you, knows your current bank account details.

And keep in mind that f you're paying money INTO a Standard Bank account, the bank offers Account Verification Services or AVS - at a cost of R2 per transaction.

For more detail, listen to the interview audio at the top of the article