Retrieves R60m for consumers

More than 10 000 complaints were resolved, with short-term insurance cases topping the list

THE office of the Ombud for Financial Services Providers, better known as the financial advice or

Fais Ombud, clawed back more than R60 million for consumers in its 2017/18 financial year, with shortterm insurance remaining the most complained-about financial sector.

The report, released last week, shows that the office received a total of 10 211 new complaints during the year, a slight reduction from the 10 846 received during the 2016/2017 financial year.

It was the second consecutive year that the office had received more than 10 000 complaints, with the office resolving 10 542 complaints in total (this includes some carried over from the previous financial year).

The amount clawed back for consumers in the settled or determined cases also showed an increase: R60 889 786, up from

R58 343 824 in 2016/2017.

Of the 10 542 complaints resolved in the 2017/18 year, 6 303 (59.8%) were dismissed, 2 799 (26.6%) were non-justiciable – meaning they fell outside the ombud’s mandate and were referred to the appropriate fora – and 1 440 (13.2%) were resolved in favour of the complainant.

Of the 1 440 cases resolved in favour of complainants, a large majority (1 392) were settled before determination stage.

The ombud made 48 determinations during the 12 months under review.

A breakdown of the justiciable complaints received according to the different types of products shows that the short-term insurance industry tops the list (it has done so historically), but that complaints about long-term insurance products (life and disability insurance) are not far behind:

● Short-term insurance: 3 243 (40.7%)

● Long-term insurance: 3 100 (38.9%)

● Investment: 1 231 (15.4%)

● Retirement: 277 (3.4%)

● Medical: 126 (1.6%)

The outgoing ombud, Noluntu Bam (she was succeeded in May by Naresh Tulsie), says in the report: “The numbers confirm that South African consumers have put their faith in the Fais Ombud.

They trust the office. It does not matter to the consumer that he does not have to present himself at the Fais Ombud – he does so. Young, old, rich, poor, literate, illiterate – we have welcomed them this year… It is an undisputed fact the Fais Ombud has changed the way the financial services game is played.”