Using book-up

Book-up is when a trader gives you a small amount of short-term credit. Stores, taxi drivers, hawkers or regional airlines often offer book-up. Book-up can help when cash is tight, but you should make sure you know your rights to avoid getting ripped off.

Using book-up is like taking out a loan, so try to avoid it if you can.

Protect yourself

Some steps to take:

• Ask about fees and charges. The trader may charge fees for using the service. They might also charge extra for paying late.
• Keep a record of your purchases.
• Decide who to let use your account. Is it just you? Can your kids use it too, or other family members? Try to keep it to the smallest number of people you can. Tell the trader who can use it. The best way is to put it in a letter.
• Set a maximum limit for your book-up and tell the trader.
• Read and understand any contract before you sign it. Don’t just rely on what the trader tells you.
• Never sign a blank withdrawal form. The trader could use this to take as much money as they like from your account.

Protect your key card

The trader might want your key card as security. You should think very hard before you give it to them.

Remember these things:

• You need your card to get to your money. Without it, you won’t be able to get money from the bank or buy things from any other trader.
• Never give the trader your Personal Identification Number (PIN). Giving your card and PIN to the trader might get you in trouble with your bank. More importantly, it lets the trader have complete access to your bank account.
• Get your card back from the trader if they are closing for the holidays.

What the trader should do

You have the right to expect certain things from the trader. They should always:

• put their terms, conditions, charges and interest rates in your written agreement
• put up a sign in the store that tells everyone what the conditions are
• always give you a receipt with the date, all the items you buy and what they cost
• show you your account whenever you ask
• keep accurate records of the total amount you owe
• keep the records somewhere secure where nobody else can see them.

If they have your key card, they should:

• keep your card somewhere safe
• return your card to you when you ask for it
• make arrangements if you need to access your card when the store is closed.

Don’t take the risk!

Get all your receipts

Priscilla books-up groceries at the only shop in town. She is very organised about it and always keeps her receipts. In fact, she gave a letter to the shopkeeper on the day she opened the account. The letter said that only Priscilla and her daughter could use her book-up account.

She checked her account the other day. It was higher than what her receipts said, so she asked the shopkeeper why. He said that her relatives had been booking-up on her account, and that she had to pay the whole amount.

Because she had kept the letter and all her receipts, Priscilla could sort out the problem. She only had to pay for things that she or her daughter had bought.