2 days ago
Store account add-ons and ‘lack of due care' car claims among top disputes for consumers
The National Financial Ombud Scheme (NFO) has placed R328.5m in the hands of aggrieved consumers in its first year of operation.
Of those who complained about financial institutions, common targets were car damage claims, funeral policies and extras added onto retailers' accounts.
The ombud's office handled 35,855 complaints between March 1 and December 31 2024 across its four divisions: non-life and life insurance, banking and credit.
Reana Steyn, head ombud and CEO of the NFO, said the sheer number of complaints received and the large sum of money recovered are testament of the NFO's effectiveness and commitment to fairness in dispute resolution and the power of independent mediation.
'The recovery of monies has helped individuals and families regain lost financial stability, reinforcing the institution's role as a guardian of justice in financial services.'
The non-life insurance division of the NFO closed 9,289 cases. A total of R94m was recovered on behalf of complainants.
Edite Teixeira-Mckinon, lead ombud: non-life insurance division, said complaints related to motor vehicle insurance accounted for 42% of all complaints finalised/resolved during the year.
