Ombud’s main concern is consumer

OBS has implemented several refinements to its service

IMPROVED banking security and savvy consumers have led to fewer cases being reported to the Ombudsman for Banking Services last year, said Ombudsman for Banking Services (OBS), advocate Clive Pillay, at this year’s annual OBS Awards ceremony, held in Joburg.Pillay said his office mediated in 5 000 complaints last year, of which 1 300 were in favour of consumers.

He said there had been a drop in complaints from previous years because the anti-virus software provided by banks had been improved and consumers were also more cautious and educated.

However, he said there were more complaints from debt-stressed consumers.

“Continued education and communication are essential, given the slew of scams that accompany new product launches.

“Even well-established products continue to be plagued by fraudsters which, exacerbated by continued consumer naivety, leads to great monetary losses for consumers yearly, not all of which can be recouped from the banks.”

Pillay said that last year, the OBS dealt with 2 282 ATM and internet banking-related cases, of which the blame for 44 could be laid at the doors of the banks. He said this resulted in R1.4 million payments to consumers last year.

Advocate John Myburgh, OBS chairman, said the spotlight was shining more brightly on the rights of the consumer and fair treatment of customers should be in bold capitals at the top of every corporate agenda.

“With the Financial Sector Conduct Authority almost a reality and the Treating Customers Fairly initiative well advanced, businesses will need to prioritise their customers as never before and remain mindful that there will be consequences for any conduct that is inconsistent with fair treatment.”

Myburgh said fair treatment covered many bases, but the one area that concerned the OBS the most was the need for financial products to be explained fully to prospective customers in plain, simple language.

“While the office acknowledges that banks have gone a long way to scrapping jargon and legalese from their agreements and conditions, the rapid rate at which new products are being introduced points to a need for ongoing consumer education.”

In the spirit of the increasingly customer-centric nature of banking, the OBS had in recent months implemented several refinements to its service to assist complainants.

In keeping with the Financial Sector Regulation Bill’s stipulation for easy access to an impartial and fair dispute mechanism, the office had launched a dedicated telephone complaint system to enhance service to consumers countrywide.

There is no need to sign a document or visit the office, which is useful for consumers who live outside Joburg, those who don’t have access to e-mail or are incapacitated.

The office had also introduced a tracking system for all complainants – previously, only those submitting a complaint through the website would receive a password with which they could monitor the progress of their complaint.

Myburgh, presenting the 2016 OBS Awards, stressed the accolades were in recognition of the banks that proved that they treated their customers’ complaints with the respect and seriousness they deserved, and to individuals who demonstrated an unwavering dedication to professional and speedy service.

The banks awards went to Nedbank and Ubank, while the honours for top-performing bank officials went to Les Barrett of Standard Bank and Colett Claassens of Capitec Bank.