Zimbabwe News and Internet Radio

Nyaradzo UK clients frantic as banks return monthly subscriptions

Scores of Nyaradzo clients in the United Kingdom were recently left anxious after their monthly subscriptions were returned by local banks without clarity from the funeral services company.

Clients took to social media groups to express their frustration over the development.

“I have contacted them (Nyaradzo) and the lady (I spoke to) said they are having problems with their bank so they are using a different way of paying this month called One Pay,” said one Memory Muleya.

One Nicole Johnson added; “Maybe their account has been closed ne bank ravo (by their bank). So, I personally would not want to make any more payments until the matter has been resolved or they explain.”

“They better not play; they better not even play,” said Ivy Mango Chatora.

For most of the concerned Nyaradzo clients, it was the absence of a clear explanation from the company which was most disconcerting.

“Why not send a memo to all clients,” wondered Lee Mamoyo.

Another group member added; “Guy from Nyaradzo said I should use a different account to transfer the money or try to reset the standing order.

“… and I’m thinking, my bank refunded the money for a reason you are not telling me. Why on earth would you want me to reset my standing order.”

Efforts to get a comment from Nyaradzo’s UK office were not successful.

Nyaradzo Group Chief Executive Officer, Mr Philip Mataranyika
Nyaradzo Group Chief Executive Officer, Mr Philip Mataranyika

Nyaradzo Group funeral service provider group was founded back in March 2001 by Chief Executive Officer, Mr Philip Mataranyika as Nyaradzo Funeral Assurance Company (NFACO).

Contacted for a comment Mataranyika asked: “Will your story help build or destroy?”

He further insisted: “Not sure if journalism is about commenting and writing about everything that happens even when it means destroying.”

Prudence Muganiwah, Marketing And Public Relations Specialist at Nyaradzo Group did not respond to messages and answer calls.

However, a banking expert said there were a number of reasons the bank might refund accounts.

“It could be that the bank closed the receiver’s account or the account is barred from receiving certain types of transactions,” he said.

“In strictly regulated markets like the UK, banks get heavily penalised by the regulator for being a conduit for money laundering or illicit transactions like collecting premiums for illegal products.

“For example, if a bank facilitates collection of premiums on a product that is supposed to be, but is not, authorised and regulated by the industry regulator then they are in breach of their legal responsibilities in terms due diligence and enforcement of set rules mandates.

“In the circumstances, if it transpires that a bank account holder is illegally collecting money, the bank would return the funds to the sender and most definitely suspend or close the receiver’s bank account.

“Depending on the regulator findings, both the bank and the receiver/account holder may end up with huge fines,” the banking expert told Nehanda Radio.