Consumer Protection Efforts Yield R60 Million Recovery in Banking

The lead ombud for the National Financial Ombud Schemes Banking Division, Nerosha Maseti, confirmed that the division recovered more than R60 million in 2025. The majority of refunds were returned to consumers in fraud-related cases.

The NFO's interventions have delivered life-changing impacts, including the return of repossessed vehicles, the writing-off of debt, and measures to avoid the sale of property at auction. Maseti emphasized that their work is not only about resolving individual complaints but also about driving improvements that benefit all consumers.

The NFO noted that reckless credit collection-related complaints remain high, with many consumers facing financial challenges. Reana Steyn, head ombud and chief executive of the NFO, stated that the National Credit Act obliges credit providers to conduct affordability assessments while holding consumers accountable for providing truthful information.

Steyn warned that providing false information when applying for a loan can lead to application rejection, legal consequences, and the inability to claim reckless credit defense. Steyn highlighted the importance of financial literacy, noting that consumers often do not understand what conditions qualify a loan as reckless.

She urged consumers to be mindful of their spending over the festive season, warning that many experience debt stress at the beginning of the year. Additionally, the report highlighted that mobile and internet banking fraud accounts for 39% of all cases in the banking division, with a 15% increase in online banking fraud complaints in 2025, indicating that fraudsters are becoming more sophisticated.

The rising threat of AI fraud has made it increasingly challenging for consumers to identify legitimate communication from their banks, with scammers cloning bank numbers to deceive victims. According to the Daily Maverick, the National Financial Ombud Scheme's recovery underscores the importance of accountability and transparency in financial institutions, particularly in the context of reckless borrowing.