The National Financial Ombud Scheme (NFO) has made a substantial impact on South African consumers, successfully recovering R416 million for those affected by financial disputes and maladministration. Formed through the merger of four key ombudsman agencies—the Ombudsman for Banking Services, Credit Ombud, Ombudsman for Long-Term Insurance, and Ombudsman for Short-Term Insurance—the NFO serves as a unified platform for resolving financial complaints efficiently.
In its latest operational report, the NFO revealed that it handled an overwhelming volume of consumer interactions, including 125,741 emails, 25,162 WhatsApp calls and messages, and 127,019 telephone calls. These figures underscore the high demand for its services in an increasingly complex financial landscape.
A Critical Safety Net for Consumers
According to NFO head ombud Reana Steyn, the scheme has provided a “vital safety net” for thousands of South Africans facing financial disputes.
However, Steyn also cautioned that the rapid digital transformation of the financial sector has introduced new risks. Scammers and fraudsters are increasingly leveraging technology to impersonate financial institutions, leading to a rise in digital fraud cases.
“The NFO is preparing itself for the increase in complaints it will face over the years as the public grapples with technology, constant new fraudulent schemes, and irresponsible financial institutions. Increased complexity in insurance cover and claims, ranging from household and vehicle insurance to life and disability cover, could similarly lead to an increase in complaints lodged with the NFO,” she said.
Growing Consumer Challenges Amid Economic Struggles
The surge in complaints comes amid worsening economic conditions. According to PwC South Africa, the country’s unemployment rate is projected to rise from 32.7% in 2024 to 33.2% in 2025. Economic growth remains sluggish, with only a 0.6% increase recorded in the fourth quarter of 2024. These factors have placed additional financial strain on consumers, increasing their reliance on ombudsman services to resolve disputes.
Looking Back: Previous Ombudsman Recoveries
Before merging into the NFO, the Ombudsman for Long-Term Insurance (OLTI) and the Ombudsman for Short-Term Insurance (OSTI) played a crucial role in securing financial relief for consumers. In 2023, these two entities collectively recovered over R386 million for complainants.
- OLTI recovered R283 million in lump sums, averaging R1.14 million per working day, with an additional R727,838 awarded in 169 cases as compensation for poor service.
- OSTI recovered R102.6 million for consumers, after handling 13,750 written assistance requests, with 6,714 chargeable complaints falling within its jurisdiction.
How to Lodge a Complaint with the NFO
Consumers who encounter disputes in the financial services sector are encouraged to first attempt resolution with their financial service provider. If unsatisfied with the outcome, they can escalate their complaint to the NFO through its website or contact centre at 0860 800 900.
As the financial sector continues to evolve, the NFO’s ability to adapt to emerging challenges will be crucial in maintaining its role as a key advocate for consumer rights in South Africa.
