National Financial Ombud Scheme Returns Over R161 Million to Consumers in Less Than Nine Months
In less than nine months since its launch on 1 March 2024, the National Financial Ombud Scheme South Africa (NFO) says it has successfully returned over R161 million to consumers who were aggrieved by financial products.
The NFO, an independent body that resolves complaints against South African financial institutions, says it has already made a notable impact on consumer protection in the country.
The NFO operates as a single, free, one-stop dispute resolution service, combining four longstanding industry ombudsman schemes: the Ombudsman for Short-Term Insurance, the Ombudsman for Life Insurance, the Credit Ombud, and the Ombudsman for Banking Services.
Reana Steyn, head ombud and CEO of the NFO called the achievement a reason to celebrate. “Recovering more than R161 million on behalf of consumers is a significant milestone achievement that highlights our dedication to protecting consumer rights and is a testament to our commitment to ensuring fairness and effective dispute resolution in the financial services industry,” says Steyn, who brings over 20 years of experience in the financial services sector.
She adds, “At the heart of our work is our shared vision to be recognised as a leading financial services Ombud office, building trust in the industry, enhancing consumer confidence, and delivering better financial services and outcomes. By sharing the insights we gain from resolving disputes, we also aim to empower South Africans with the knowledge they need to make informed financial decisions.”
As 2024 draws to a close, Steyn cautions South Africans to be extra vigilant with their financial choices during the festive season, often leading to increased spending and heightened risks of banking and financial pitfalls.
She offered several key tips to consumers of credit, banking, and insurance services during this busy period:
Avoid overspending: Steyn urged consumers to resist overspending or rely on credit for holiday purchases. “Remember that January can be a financially stressful month if debts are not carefully managed. If you must use credit, ensure you budget for repayments to avoid falling into unmanageable debt,” she advises.
Beware of 'too good to be true' deals: Steyn says consumers must familiarise themselves with a merchant’s usual pricing to spot inflated discounts. “If a deal seems too good to be true, it is. Familiarise yourself with a merchant’s usual pricing to identify when discounts are genuinely impressive versus when they are built on inflated prices,” she says. “Save receipts and documentation for all purchases. This will be crucial for returns or in the event of any disputes regarding fraud.”
Protect against banking fraud: With scammers particularly active during the holiday season, Steyn cautions consumers to be on the lookout for phishing emails, unsolicited calls, and suspicious payment requests. “Be cautious of phishing emails, unsolicited calls, or suspicious payment requests. Never click on links received in unsolicited messages and only shop from reputable websites,” she advises. Steyn also encouraged regular monitoring of accounts for unusual activity and stressed that personal banking details should never be shared with anyone. Additionally, she emphasised the importance of immediately reporting suspicious activity, including unauthorised SIM swaps, to the bank.
Keep insurance policies up to date: Steyn warns that many people unintentionally let their insurance policies lapse during the festive season, leaving them vulnerable to unforeseen events. “Consumers must ensure insurance premiums are up to date to protect against unforeseen events,” she said.
As South Africans celebrate the festive season, Steyn also encourages them to plan ahead for financial security in 2025. “As we celebrate the festive season, let us also take the time to plan for financial security in 2025. Responsible financial decisions today ensure a brighter, more stable tomorrow.
“At the NFO, we are committed to protecting your money and rights, and we encourage every South African to prioritise vigilance and responsibility during this season," she says.
PERSONAL FINANCE