Sunday, June 14, 2015

Confusing Terms and Conditions on the use of NETS CashCard

I bought a NETS cash card and it failed within a month. DBS Bank told me that I could get the refund of the deposit of $5 but I had to complete a form.
After submitting the form, NETS replied that the $5 is not refundable. The staff explained that it was refundable only for a faulty card found at the time of the first purchase.

I asked for the terms and conditions and they gave me this link to their website. The terms and conditions confused me and seemed to be overlapping and contradictory. Here are some of the relevant clauses:


8.2 Subject to these Terms, the Cardholder shall be entitled to a refund of the Deposit, if any, and the Stored Value of the NETS CashCard effected pursuant to Clause 8.5 hereof within four years after the Validity Period, PROVIDED THAT if a refund of the Deposit, if any, and the Stored Value of the NETS CashCard is requested or effected more than two years after the Validity Period, NETS shall be entitled:
a) to forfeit the Deposit, if any; and
b) to levy a service charge of S$1.00 per month or such other amount as NETS may determine from time to time, such levy to be deducted monthly from the Stored Value commencing the month after the end of the aforesaid two years until the refund of the Stored Value (less such service charge) of the NETS CashCard or when the Stored Value is fully depleted, whichever is the earlier.

8.3 The Cardholder shall not be entitled to a refund of the Stored Value after the lapse of four years after the Validity Period whereupon the Cardholder shall have no claim whatsoever against NETS and the Approved Banks.

8.7 In the event a NETS CashCard is defective (not through any fault or act of the Cardholder) during its first use for payment for, or a transaction of, NETS CashCard Services, NETS shall replace the defective NETS CashCard with a new NETS CashCard. No replacement shall be made by NETS for any NETS CashCard found to be defective at any second or subsequent use.

I am totally confused. Am I entitled to a refund of the deposit of $5? The NETS staff replied that there is no refund for a faulty card after the first purchase. (She must be reading clause 8.7). But clause 8.2 and 8.3 suggest that I am entitled to a refund.

You should read the entire Terms and Conditions to get the feeling that this is a badly written document that is confusing to consumers. How can the Monetary Authority of Singapore allow NETS to get a license to operate a public financial service based on such Terms and Conditions?


Anonymous said...

Mr Tan,
Clause 8.7 relates to replacement of the cash card, whereas the earlier clauses relate to refund of the value/deposit. There is no ambiguity. But clauses 8.4 to 8.6 are missing which could be crucial to understanding the T&Cs.

Anonymous said...

Mr Tan,
Further to my comment at 4.32, I have looked at Net's cashcard T&Cs which you have only posted partially showing the wrong clauses. Your case should be under Clause 9.1 (for cashcard that is still valid but defected through wear & tear or causes not caused by you). You are entitled to refund of the cash value and deposit, but not replacement of the cashcard.

Anonymous said...

Why should any store value card such as EZLink have a non refundable deposit when this card is used to bring in business for the service provider? The card is always filled with cash credit to be meaningful. I can't remember there is any in HK, Taiwan, Australia or UK. It's unfair to consumers but it is Spore's accepted business model because of little or no competition and also poor consumer right.

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