More South Africans are turning to the National Financial Ombud Scheme (NFO) when disputes arise with lenders – and many are finding the help they need.
Complaints to the Credit Division increased by 58% during the year, while the amount recovered for consumers more than tripled to R7.47 million, according to the NFO’s 2025 annual report.
The Credit Division also reported that 62% of complaints were resolved in favour of consumers. It achieved the highest complainant satisfaction score among the NFO’s four divisions and recorded the highest proportion of findings in favour of complainants.
The figures point to increasing reliance on the ombud process, while also suggesting that consumers are obtaining meaningful relief when disputes arise.
They also offer a glimpse into the financial pressures facing consumers, from disputed debts and credit bureau listings to allegations of reckless lending and increasingly sophisticated fraud.
A year of major change
The figures come from a year of significant change for the NFO.
In July 2025, the Banking and Credit divisions were merged into a single Banking and Credit Division under the leadership of ombud Nerosha Maseti.
Maseti said the merger made strategic sense because banking and credit functions are closely intertwined, often involve overlapping complaint types, and require similar engagement with industry stakeholders.
The NFO said bringing the divisions together has improved knowledge-sharing, strengthened expertise, and created a more holistic approach to resolving financial disputes.
The increase in complaints should also be viewed in context. The NFO’s 2024 figures cover only the period from March to December, while the 2025 figures cover a full calendar year. For that reason, the annual report uses monthly averages when assessing year-on-year trends.
The most notable change occurred in complaints lodged at an early stage of the process. Premature complaints – matters referred to the NFO before a credit provider has had an opportunity to address the complaint through its own internal processes – increased from 1 099 in 2024 to 2 561 in 2025.
On a monthly average basis, premature complaints increased from about 101 cases a month to 213, meaning they more than doubled over the period.
Formal complaints rose from 1 410 to 1 893, while average monthly formal complaints increased from 141 to almost 158.
Consumers increasingly finding relief
More complaints do not necessarily mean more unresolved problems. In the Credit Division’s case, consumer outcomes improved alongside rising demand for assistance.
The number of matters finalised increased from 2 040 in 2024 to 2 854 in 2025, representing a 40% increase.
The Division also reduced the average turnaround time for formal complaints from 79 working days to 57 days.
The Division’s success rate also improved significantly compared with the previous year.
“Over the past year, 62% of complaints were resolved in favour of consumers, meaning that in more than half of cases, we helped individuals obtain the redress they needed,” the report states.
The Credit Division also achieved the highest complainant satisfaction score in the NFO at 76%, ahead of Life Insurance at 72%, Banking at 64%, and Non-life Insurance at 42%.
What are consumers complaining about?
The types of complaints reaching the ombud provide a useful window into the pressures facing South Africa’s credit consumers.
Store cards and store accounts remained the most complained-about products during 2025.
Disputes in this category centred on value-added services, reversals of charges, service-related issues, allegations that accounts had been settled, prescription, and fraud.
Personal-loan complaints were largely driven by allegations of reckless lending, prescription disputes, disagreements regarding outstanding balances, accounts handed over for collection, contractual interpretation, and statements of account.
The Credit Division also continued to deal with complaints involving telecommunications credit products. These disputes typically involved contractual terms, allocation of payments, overcharging reversals, paid-up letters, and failures to update credit bureau records.
Overall, the complaints suggest that many consumers are struggling not only with debt, but also with understanding how credit agreements, collection processes, and credit reporting systems operate.
The report notes that many consumers who approach the Credit Division are financially stressed and may not fully appreciate the implications of the credit they take on. Complaints involving prescription, alleged reckless lending, collection processes, and credit bureau records all point to the challenges consumers face when trying to navigate increasingly complex credit arrangements.
At the same time, a number of disputes involved consumers who believed accounts had been settled, questioned balances claimed by credit providers, or challenged information recorded on their credit profiles. These complaints highlight the importance of clear communication, accurate record-keeping, and responsible lending practices.
Many of these complaint themes are familiar to the industry, but the report points to a notable shift in one area.
A changing complaints landscape
Credit disputes are increasingly reflecting the same digital risks that have transformed complaints in the banking sector.
Read: Banking complaints surge as fraudsters follow customers online
According to the NFO, fraud-related complaints increased noticeably during 2025.
These included card-not-present transactions linked to vishing scams, as well as the unauthorised use of card details and one-time passwords.
The report says these matters often required more intensive investigation and engagement, reflecting the changing risks facing consumers in the credit market.
The trend was particularly evident in store-card and telecommunications-related complaints, where fraud, unauthorised transactions, and service-related disputes are becoming increasingly prominent.
Historically, most credit disputes involved familiar issues such as affordability assessments, debt collection practices, and credit bureau records.
“It also reflects the changing risks faced by consumers in the credit market and confirms that the role of the Credit Ombud is evolving – moving from primarily handling contract disputes to increasingly protecting consumers from the very real and growing impact of financial crime.”
Industry engagement
Resolving individual complaints is only part of the ombud’s role.
The report says the Credit Division engaged extensively with credit providers and industry stakeholders during the year to address recurring complaint themes and process-related shortcomings identified through case investigations.
These engagements focused on improving early-stage complaint resolution, reducing unnecessary escalations, and ensuring greater alignment with the NFO’s rules.
As a result, participants committed to reviewing and refining internal processes relating to account closures, affordability assessments, complaint escalation mechanisms, and credit bureau reporting.
The NFO said these engagements contributed to improved responsiveness and greater consistency in complaint handling.
Participant engagement remained strong throughout the year, with all major credit providers continuing to participate in the ombud process.
A growing role
The figures point to a division whose role is becoming increasingly important within South Africa’s financial services landscape.
More consumers are becoming aware of the ombud’s services and are willing to seek assistance when disputes arise. At the same time, the division is handling larger volumes, recovering more money for consumers, resolving matters faster, and securing favourable outcomes in a significant proportion of cases.
As complaint volumes continue to rise and financial crime becomes a growing feature of the credit landscape, the role of the credit ombud appears to be expanding well beyond its traditional focus on contractual disputes.
