OMBUD’S SERVICE IS FREE

THE CREDIT Ombud’s service is free. The only requirements that must be met are:

• The complaint must be within the jurisdiction of the office;

• The complainant must follow the stipulated complaint process; and

• The complainant must sign or agree to the terms and conditions/ rules and undertakings that accompany the complaint form.

The ombud’s rulings are binding on its members (credit providers and bureaus). If you’re not happy with the decision of the office, you may approach the National Credit Regulator, or seek alternative remedies.

To contact the Credit

Ombud, phone 0861 662 837 or

011 781 6431, or SMS “Help” to 44786, email ombud@creditombud. org.za, or send a letter to PO Box 805, Pinegowrie, 2123. The office’s website is www.creditombud.org.za. their statements.” The ombud can help by accessing those statements – and have unnecessary charges either scrapped or reimbursed, Lala Mohan says.

Other prevalent issues were emolument attachment orders, unfair credit bureau listings, fraud and reckless lending. In many cases, balances were written off, refunds issued, or consumers were helped to enter into payment arrangements.

Last year, the office resolved 64.76% disputes in consumers’ favour, a figure, which, the ombud says, has remained stable during his tenure.

“We’ve been constantly in line with this figure for the past three years. It shows that consumers out there need help – they go through the internal processes and don’t win with the credit providers or bureaus, so they come to us.”

Reckless credit provision is always a concern, Lala Mohan says, with 40% of complaints being made against credit providers, but he doesn’t believe there are systemic issues.

“Reckless lending is when you don’t apply affordability guidelines. The guidelines provide a blueprint for companies, but each company pushes the boundaries to suit themselves. In one case, a credit provider said a consumer had R2 left in their account after deductions, so they could afford the credit.”

Lala Mohan says his office is proud of its work because it had a good year.

“Generally, we are finding the numbers of complaints and queries to be increasing, due to the state of the economy, but much of it is owing to consumer education. We’ve done a lot of work around that, including outreach activities.”

georgina.crouth@inl.co.za