By Lehlohonolo Lehana.
The amalgamation of the Ombudsman for Banking Services (OBS), the Credit Ombud (CO), the Ombudsman for Long-Term Insurance (OLTI), and the Ombudsman for Short-Term Insurance (OSTI) into the National Financial Ombud Scheme (NFO) have dealt with 40,859 cases and having recovered R416-million for consumers over the past year.
The NFO was created last year and marked its first anniversary this week.
Reflecting on the establishment of the NFO on its first anniversary, Reana Steyn, NFO Head Ombud, says that the NFO has made a significant impact since its amalgamation one year ago.
“We have had an important impact on the lives of thousands of South Africans by offering a vital safety net and recourse mechanism following any form of maladministration, disputes with the financial service providers or a significant financial loss. Few realise how important it is to have access to this kind of assistance until they become a victim of fraud, or suffer a loss,” says Steyn.
Since its inception on 1 March 2024, the NFO has dealt with 40 859 cases. During this period, the total amount claimed and refunded to consumers for the said period was R416,02 million.
This is a significant milestone in terms of recovering funds on behalf of consumers and is a testament to the NFO’s dedication to protecting consumer rights and its commitment to ensuring fairness and effective dispute resolution in the financial services industry,” says Steyn, who adds that the financial services and insurance sectors play a vital role in the country.
Additionally, the NFO received and dealt with 125 741 emails as well as 25 162 WhatsApp calls and messages through its contact centre. This contact centre also received a total of 127 019 telephone calls in its first year.
The NFO has received thousands of complaints related to banking, credit, and insurance services. While the scheme has made progress in resolving these disputes, concerns remain about the complexity of financial products and the vulnerability of certain consumers.
As the NFO looks to the future, it will need to balance the needs of consumers with the interests of financial institutions. With the financial sector continuing to evolve, the scheme’s ability to adapt and respond to emerging challenges will be crucial.
Meanwhile, OSTI recovered R102.6-million for consumers, after receiving 13,750 written requests for assistance, with 6,714 chargeable complaints within its jurisdiction.
If you have a complaint that falls in the financial services sector, you are expected to first try to resolve the dispute with the financial services provider. However, if you are still unhappy with the outcome, you can contact the NFO through its website https://nfosa.co.za/ or its contact centre at 0860 800 900.