MEDIA XXX STATEMENT
The OBS secures millions for bank customers wronged by banks Over the past two years, the Covid-19 Pandemic has disrupted the traditional banking model, testing it to its limit. Banks are battling to address this. Reana Steyn, the Ombudsman for Banking Services (OBS) points out that 2021 brought with it some serious financial challenges for most South African banking consumers. Distributed on behalf of the Ombudsman for Banking Services by Lola Lazarus of Bullion PR & Communication.
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hese consumers had to turn to the OBS for intervention against their banks. “This is evidenced by the record number of complaints received and investigated by the OBS in 2021, where the number of complaints adjudicated by the OBS increased by 7% as compared to 2020,” says Steyn. She added that the number of cases finalised in 2021 increased from 7,230 in 2020 to 8,039 closures. This was a 9% increase from 2020. Steyn advised that despite this increase, the OBS was able to resolve these complaints efficiently. Further, she encouraged all consumers who have been wronged by their banks or who have suffered losses, or some serious distress and inconvenience due to a bank’s maladministration, to contact her office for the free dispute resolution service it offers.
Key Statistics Continuing the trend from previous years, 2021 was no different, with many of the complaints received and resolved by the OBS relating to fraud, maladministration by banks, closure of bank accounts and repossessions. The OBS opened a record
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SECURITY FOCUS AFRICA JUNE 2022
8,257 complaints during the reported period. This was a 7% increase from 2020 and a 28% increase from the number of cases opened in 2019. “Over 10,330 complaints were referred to the banks in 2021, compared to the 8,389 cases in 2020. Referrals are complaints received by the OBS from consumers who have not provided their banks the opportunity to resolve the complaint with them in an amicable manner. The OBS sends these complaints to the banks, on behalf of the consumers, for the banks to attempt to resolve the matters directly with consumers. The matter is only converted into a formal case if the problem cannot be resolved by the bank,” says Steyn. She added that since it is her office’s vision to be known as a trusted mediator of disputes, the constant increase in referrals (23% increase), complaints (9% increase) and calls received by the OBS call centre (7% increase from 39,239 in 2020 to 41,880 in 2021) is hopefully an indication that the public is becoming aware of the free, fair, professional, and expedient alternative dispute resolution service offered by the OBS.
Types of complaints received in 2021 According to Steyn, many of the complaints opened and investigated by her office in 2021 involved instances where bank customers became victims of various types of fraud. However, internet banking complaints reclaimed their pole position as the category with the most complaints in 2021, accounting for 19% of the total complaints opened. “This is an alarming 6% increase from 2020 and a worrying statistic, as it goes against the progress made in 2020, where the number of internet fraud victims had dropped significantly, to a record low of 13% of the total complaints,” pointed out Steyn. Second, the OBS dealt with many service-related complaints, maladministration by banks, consumers being debt stressed, account closures by banks and consumers disputing the fees or interest rates applicable to their agreements. Current Account complaints accounted for 16% of total cases opened. This was a 3% decrease from 2020. Personal loan and mortgage finance complaints remained constant at 11% and
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