A 76-year-old bank customer was so aggrieved by the failure of his bank to handle his complaints that he closed all his accounts with the bank and moved R1 million out of the bank.Nerosha Maseti, the Lead Ombud of the Banking Division at the National Financial Ombud Scheme (NFO), said banks must address complaints fairly and transparently.
“Banks can generate word-of-mouth referrals and a strong reputation by providing a positive customer experience. Banks must focus on building relationships with their customers, understanding their needs, and providing personalised service to ensure satisfaction,” she said.
If a customer is unhappy with how a complaint has been handled, the Banking Division of the NFO will investigate the complaint without a fee. Citing a recent case of shoddy customer service, Maseti said the aged customer went to a bank branch and requested to open an account that would not attract any fees.
A savings account was opened, and the customer was assured that no fees would be charged to the account. However, fees were charged. The customer complained, and the fees - less R1 - were reversed. The customer was also advised to open a seniors' cheque account, and he said he was informed that no fees would be charged. Again, fees were charged to his account. Maseti said the disgruntled customer visited more than one of the bank’s branches on several occasions in an effort to resolve the matter, to no avail.
He then approached the Banking Division of the NFO, wanting the fees to be refunded and an amount of R160 paid to him for costs incurred in travelling to the bank’s branches. In the bank’s response to the NFO, reference was made to the terms and conditions the customer accepted when he opened the cheque account and that the fees were charged correctly in line with the terms and conditions.
The bank confirmed it had refunded the fees charged as a gesture of goodwill but declined the customer’s request for compensation of R160.Maseti said it was evident that the customer had made his needs clear to the bank when the accounts were opened, which necessitated closing the savings account and opening the cheque account. “We considered the bank’s conduct in line with the conduct standard and the Treating Customers Fairly principles.
It emerged that the bank staff who assisted the complainant did not have the necessary product knowledge or did not take the customer’s request properly into consideration when the customer was assisted. “In addition, when the customer complained, he was also not properly assisted, which resulted in several trips to the branches. “We recommended that the bank pay the customer compensation for these failures in addition to the fee refund, which the bank and the customer accepted.
“However, by this time the customer was so unhappy that he closed all his accounts with the bank and moved R1 million out of the bank,” said Maseti.
PERSONAL FINANCE