Old Mutual meets unhappy client
Financial services provider Old Mutual has met Sebabatso Molefi after it did not pay her mother’s pension despite a court order ruling it must, leading to outrage on social media.
Old Mutual has been trending on X since Friday after Molefi’s unhappy post last Tuesday went viral and users shared their own bad experiences with the insurer.
Molefi’s post has been viewed 1.4-million times: “Dear @OldMutualSA please advise why you are refusing to release my mother’s money even though a court order has been provided. You are in contempt of court and I am about to lose my cool right now.”
Molefi said in a new X post on Tuesday that Old Mutual had tabled two offers towards a full and final settlement. She said she and her mother’s legal adviser had requested further clarity on each offer and then thanked everyone for their support on social media.
Old Mutual has not disclosed the details, saying it could not immediately comply with the court order while upholding pension fund and tax law, suggesting the case was not clear cut.
It paid out 96% of all claims, it said.
By the weekend, hundreds of people had shared their own stories of low payouts, challenges working for Old Mutual and difficulties accessing funeral and life policy payouts. Many called for customers to switch their policies to other providers.
In response to the outpouring of rage in what has been depicted as a large corporate abusing low-income black consumers, Old Mutual apologised.
“The sheer number of customers who have voiced their unhappiness on X with regards to the level of service is of concern to us. We apologise unreservedly to customers who have been unhappy with the level of service we have always provided and we are continually looking for ways to improve this.”
Old Mutual’s share price closed 1.83% higher at R12.21 on Tuesday but is down more than 6.5% so far this year.