Consumers caught in hidden debt trap as ombud flags unfair practices
From hidden VAS fees that quietly inflated balances to wrongful fraud listings, the NFO Credit Division’s interventions have secured millions in write-offs.
#NationalFinancialOmbudScheme
Non-life complaints resolved in favour of policyholders at 16.5%
Lead Ombud Edite Teixeira-Mckinon warns against drawing hasty conclusions about complaints stats without factoring in claims volumes and policy counts.
Non-life insurance ombud sees 11% drop in complaints in 2024
Most complaints to the NFO went to the Non-life Division, whose interventions yielded R107m in quantifiable benefits for policyholders.
Fraud floods complaints as banking ombud speeds up resolutions
Mobile banking fraud, phishing, and vishing drove 30% of all complaints, highlighting fraud as the leading issue in the Banking Division’s first year under the NFO.
When banks get it wrong: ombud cases reveal costly mistakes
Only 21% of formal complaints to the Banking Division were resolved in favour of consumers.
NFO’s Life Division recovers over R202m for consumers in 2024
Complaints about life-benefit payouts climbed to 36% of the Division’s cases, from 34% in 2023.
Non-life ombud rules that insured can keep written-off vehicle
The NFO decided that Dotsure must indemnify the insured and waive the transfer-and-repurchase requirement, overturning strict adherence to the SAIA Code.
Employer medical boarding doesn’t guarantee a disability insurance payout
Even when an employer’s doctor declares an employee unfit, group policy definitions such as ‘Own Occupation’ vs ‘Any Occupation’ can lead to claim denials.
Grace period doesn’t prevent insurers from rejecting a claim
Some insurers send SMS or email reminders, but it is the policyholder’s responsibility to ensure that an overdue premium is paid.
Ombud Council to focus on making financial consumers more aware of their right to redress
The Council will use complaints data to spot systemic risks and harmonise complaint-handling across all financial ombuds, its five-year strategic plan shows.
Expired driving permit was not material to the loss, non-life ombud rules
The insurer argued the hijacked vehicle should not have been on the road because the driver’s PrDP had expired.
Does ‘sitting on the mattress’ matter? Ombud rules on insurance policy dispute
The NFO decided that failing to follow customary mourning rituals did not prevent the recognition of a customary marriage, awarding the claim based on fairness.
Ombud Council’s first formally tabled report highlights reforms in financial dispute resolution
Key achievements include the creation of the National Financial Ombud Scheme and the new FAIS Ombud Rules.
Express kidnapping: when disclosing banking details leads to financial loss
When a customer compromises their confidential banking details, they are usually held liable, but once the breach is reported, the bank becomes responsible for mitigating any further losses.
Ombudsman’s report unveils banking blunders and customer missteps
The cases dealt with by the banking ombudsman last year included a home auctioned for far below its value and fraud linked to a stolen phone.
Key aspects of Treasury’s proposals to reform SA’s financial ombud system
The National Financial Ombud’s jurisdiction will be expanded in phases to include the activities of all regulated financial institutions.
New National Financial Ombud scheme launches
The previously separate credit, banking, and long-term and short-term insurance ombud schemes are now under one roof.
