Business

Are South Africa's banks mishandling consumer complaints?

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The National Financial Ombud Scheme (NFO) has revealed that South Africa’s five largest banks accounted for the majority of banking complaints

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The National Financial Ombud Scheme (NFO) has revealed that South Africa’s largest banks accounted for the majority of banking complaints received in 2024, with a total of over 5,900 cases opened against them.

Since its establishment a year ago, the NFO has recovered approximately R328.5 million for consumers who lodged complaints against financial institutions across the country.

The NFO is an independent body that helps consumers resolve disputes with banks, insurers, and credit providers. It acts as a watchdog for fair treatment and helps people get their money back when things go wrong.

According to the NFO, "Of the total amount of R328 550,212.58 recovered on behalf of complainants, the Banking division of the NFO recovered R29,175,451.14; Credit R2,355,840.20; Life R202 854 491,24; and Non-life R94,164,430.00."

Here’s how the complaints stack up:

Capitec Bank: 1,203 complaints (20% of banking cases), with 22% ruled in favour of consumers

First National Bank (FNB): 1,017 complaints (17%), with 16% consumer wins

Standard Bank: 998 complaints (17%), 19% ruled for consumers

Nedbank: 881 complaints (15%), 22% consumer wins

Absa: 812 complaints (14%), 13% ruled for consumers

Fraud remained the leading issue in consumer banking complaints, representing 30% of all cases. Complaints related to maladministration and debt-stressed consumers followed as the second and third-highest categories.

Nerosha Maseti, Lead Ombud for the Banking Division, noted that despite major internal changes, the division adapted seamlessly and resolved complaints faster than the previous year while maintaining a strong commitment to fair outcomes.

The Banking Division opened a total of 15 412 cases, of which 11 535 cases were successfully closed. A total of R29 175 451,14 was recovered for consumers.

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