In less than nine months since its launch on 1 March 2024, the National Financial Ombud Scheme South Africa (NFO) has put back more than R161 million into the hands of aggrieved consumers of financial products.
The NFO is an independent body that resolves complaints brought by consumers against South African financial institutions.
Acting as a single, one-stop, all-in-one free dispute resolution service, the NFO is made up of four former longstanding industry ombud schemes: the Ombudsman for Short-Term Insurance, the Ombudsman for Life Insurance; the Credit Ombud and Ombudsman for Banking Services.
For NFO Head Ombud and CEO, Reana Steyn, it is time to crack open the bubbly and celebrate an impactful year.
“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,” said Steyn who has over 20 years of experience in the financial services industry.
“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”, she said.
AS 2024 draws to a close, Steyn sounded a warning to South Africans to remain extra vigilant about their financial choices during this festive season which not only brings increased spending but also a higher risk of banking and financial pitfalls.
Steyn offered the following tips for consumers of credit, banking and insurance.
She urged people to resist the urge to overspend 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.
“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 built on inflated prices.
“Save receipts and documentation for all purchases. This will be crucial for returns or in the event of any disputes regarding fraud,’ said Steyn.
The public has been reminded to be on the alert for banking fraud as scammers are particularly active during this time.
“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.
“Regularly monitor your accounts for any unusual activity and never share your personal banking details with anyone,” Steyn said to The Bulletin and advised that any suspicious activity, including unauthorised SIM swap, must be immediately reported to the bank.
Steyn added that many people inadvertently let their insurance policies lapse during the festive season, leading to devastating consequences. Consumers must ensure insurance premiums are up to date to protect against unforeseen events.
“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 prioritize vigilance and responsibility during this season”, said Steyn.
