The National Financial Ombud Scheme (NFO) has dealt with 40 859 cases since March last year and assisted consumers to receive R416 million in refunds.
The NFO was created last year by the amalgamation of the Ombudsman for Banking Services, the Credit Ombud, the Ombudsman for Long-Term Insurance and the Ombudsman for Short-Term Insurance.
It therefore deals with complaints from consumers in the financial services sector in South Africa.
Reflecting on the establishment of the NFO on its first anniversary, Reana Steyn, NFO Head Ombud, said 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.
The NFO also received and dealt with 125 741 emails as well as 25 162 WhatsApp calls and messages through its contact centre. The contact centre also received a total of 127 019 telephone calls in its first year.
Steyn said the recovery of funds on behalf of consumers was 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.
She warned that the threat landscape within the banking and credit sector is growing as technology becomes more advanced and accessible.
"The NFO is preparing itself for the increase in complaints it will face over the years as the public grapples with technology, constant new fraudulent schemes and irresponsible financial institutions. Increased complexity in the insurance cover and claims, ranging from household and vehicle insurance to life and disability cover, could similarly lead to an increase in complaints lodged with the NFO," said Steyn.
Steyn added that scammers and fraudsters are increasingly using technology to impersonate representatives from financial institutions and then convincing vulnerable consumers to take action to their detriment.
“We urge the public to ensure they are informed about their rights and obligations in terms of their financial contracts, but if they believe that their situation caused them to fall into the vulnerable category, they must alert the NFO. The NFO deals with all complaints in a fair and equitable manner,” says Steyn.