All the help which the previous ombuds schemes provided to consumers individually for decades is available via the NFO, but in a more streamlined, co-ordinated and less confusing way.
“The long history of assisting financial customers in their respective sectors to obtain redress for unfair treatment by financial institutions, free of charge and with minimal formality, is a hallmark of the ombud service which consumers have come to expect and value,” said Reana Steyn, ombud for banking services.
“We believe both the financial customers and the participants of the scheme will benefit significantly as a result of the new single-entry point process, with the same rules applicable to all types of complaints.”
It would also be easier to create awareness and educate consumers about the existence and mandate of the single scheme, as opposed to trying to explain the function of four separate schemes, Steyn said.
“Other benefits of the new scheme include improved efficiencies at the administrative level and a harnessing of the institutional knowledge, expertise and staff experience of the previous schemes, built up over more than 20 years.”
Each of the predecessor schemes will operate as a division of the NFO.
Complaints can be submitted to the NFO in one of the following ways:
TimesLIVE
New one-stop-shop ombud scheme opens
Image: 123RF/CONVISUM
Whether you feel your bank should be liable for your fraud losses, your insurer unfairly rejected your car crash claim, your “blacklisting” is unjustified or your life insurance company isn’t engaging with you appropriately, you can take your complaint to a free one-stop dispute resolution “shop”.
After three years of negotiations, the four previously independently operating financial services ombuds’ offices — banking services, credit, long-term insurance and short-term insurance — have come together under the newly formed National Financial Ombud Scheme (NFO).
Based in Houghton Estate in Johannesburg, the NFO is open to accept consumer complaints from March 1.
The Ombud Council granted the NFO recognition in terms of the Financial Sector Regulation Act a week ago, mandating it to ensure customers of financial institutions have access to free, independent and fair alternative dispute resolution processes when they are in dispute with their service providers.
The amalgamation arose from a World Bank Group review of the South African financial ombud system in 2021 which noted fragmentation of the system, and recommended they be consolidated into a single ombud scheme, independent of both industry and government, and covering the entire financial sector, but initially excluding retirement funds.
All the help which the previous ombuds schemes provided to consumers individually for decades is available via the NFO, but in a more streamlined, co-ordinated and less confusing way.
“The long history of assisting financial customers in their respective sectors to obtain redress for unfair treatment by financial institutions, free of charge and with minimal formality, is a hallmark of the ombud service which consumers have come to expect and value,” said Reana Steyn, ombud for banking services.
“We believe both the financial customers and the participants of the scheme will benefit significantly as a result of the new single-entry point process, with the same rules applicable to all types of complaints.”
It would also be easier to create awareness and educate consumers about the existence and mandate of the single scheme, as opposed to trying to explain the function of four separate schemes, Steyn said.
“Other benefits of the new scheme include improved efficiencies at the administrative level and a harnessing of the institutional knowledge, expertise and staff experience of the previous schemes, built up over more than 20 years.”
Each of the predecessor schemes will operate as a division of the NFO.
Complaints can be submitted to the NFO in one of the following ways:
TimesLIVE
READ MORE:
Slides you can't expose to sun, tyre expiry dates, warranty T&Cs
Doctor scores payback from insurance broker after Land Cruiser theft
PODCAST | WENDY KNOWLER: How do you score?
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos