BANKING OMBUDSMAN IS REVIEWING A RECORD NUMBER OF COMPLAINTS

THE COVID-19 Pandemic experienced over the past two years has disrupted the traditional banking model, testing it to its limit and bringing with it some serious financial challenges for most South African banking consumers last year, according to the Ombudsman for Banking Services (OBS) Reana Steyn. She said yesterday that the country’s banks were battling to address this, forcing consumers 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 percent as compared to 2020,” Steyn said. She added that the number of cases finalised last year increased by 9 percent from 7 230 in 2020 to 8 039 closures. Releasing the organisation’s annual report yesterday, Steyn advised that in 73 percent of the matters resolved by her office last year, the findings were in favour of the banks. This meant that in 5 846, or 72.7 percent, cases, it was her office’s findings that there was no legal nor fair grounds to uphold the complaint against the banks. The concerned banks were held 100 percent liable for the complainant’s claims in 15.9 percent of last year’s complaints.