Wholesaler sues bank over plastic money

15 Oct, 2017 - 02:10 0 Views
Wholesaler sues bank over plastic money

The Sunday News

Steward BANK1

Danisa Masuku, Business Correspondent
LEADING Bulawayo grocery company, Fortwell Wholesale Ltd is suing Steward Bank for alleged breach of a verbal contract that resulted in the wholesaler allegedly losing $74 193,12.

According to court papers filed at Bulawayo High Court under Case No H. C 2471/17, Fortwell Wholesale through its lawyers Titan Law, said the bank approached the company for an arrangement whereby, the latter would use nine Point Of Sale (POS) machines belonging to the bank for plastic money transactions.

“Sometime in June 2016, the defendant engaged Plaintiff to use their Point Of Sale units (POS) on an arrangement that Plaintiff will not be charged for the use of the machines or for any transaction done on the Defendants POS units. All charges were to be borne by the customer purchasing goods using the Defendants POS units,” read the summons. Nothing was however, put in writing.

“The arrangement was never reduced to writing even after a total of nine POS units were delivered to the plaintiff,” the company added.

However, things came to a head when eight months later in February this year, Fortwell Wholesale realised that $74 193,12 had been debited from its account and insist that Steward Bank despite spirited efforts of engagement, has refused to reimburse the money.

“Defendant has failed, neglected or refused to reimburse the $74 193,12,” said Fortwell.

The company argued that the amount represented one percent of every transaction that was done through the machines.

Now the company wants the money reimbursed but the bank won’t budge. Through its lawyers Calderwood, Bryce Henderie and Partners Steward Bank has indicated “an appearance to defend”.

This legal wrangle comes at a time when plastic money use has increased in the country as cash shortages persists.

 

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