Cape Argus E-dition

OVERALL COMPLAINTS ABOUT BANKS UP BY 19% IN 2020, SAYS OMBUDSMAN

Martin Hesse

COMPLAINTS by consumers about their banks to the Ombudsman for Banking Services (OBS) increased substantially last year, with Capitec seeing the biggest rise in complaints, although Absa saw a drop.

This is according to the ombudsman’s annual report for 2020, which was released this week.

The report notes that last year the OBS opened a record total of 7 717 formal cases, which represented a 19% increase on the 6 472 cases opened in 2019.

In 2020, the OBS closed 7 230 cases compared with the 6 133 closed in 2019 (an 18% increase).

The ombudsman, Riana Steyn, announced that her office had managed to recover R16 million for consumers.

The following numbers of formal cases were opened against the five big banks last year:

Absa: 943 cases (a decrease of 36% from 2019);

Capitec Bank: 1 259 cases (a 39% increase);

First National Bank: 2 197 cases (a 22% increase);

Nedbank: 1 217 cases (a 10%

◆ increase); and

Standard Bank: 1 572 cases (a 28% increase).

Note that these figures must be seen in the context of the different sizes and the growth or contraction of the banks last year. If, for example, one bank gains a large number of customers at another’s expense, the growing bank is likely to have a proportionate rise in complaints, while the bank losing customers is likely to have a corresponding drop.

Regarding the types of complaints, the report notes that there was a

◆ welcome decrease in complaints about internet banking fraud. This is no longer the largest category of complaints, which it was in the previous two years. The top categories were: current accounts (19% of complaints received); internet banking fraud (13%); credit cards (11%); personal loans (11%); ATM-related issues (9%); mortgage loan finance (8%); and vehicle finance (7%).

Current account complaints consisted of complaints relating to fraud, fees and charges. Complaints relating to banks’ failure to give notice of account closures was a major cause of complaints (80% of the current account matters).

Regarding internet banking fraud, Steyn says the decrease may be attributed to the efforts of the banking industry, as well as the OBS, which continuously provide education and awareness about fraud and scams in the internet banking space. The OBS closed 981 internet banking fraud cases in 2020 against 1 292 in 2019. Almost three-quarters, or 73%, of these complaints were resolved in favour of the banks, and 27% were in favour of the customers.

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PERSONAL FINANCE

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2021-05-15T07:00:00.0000000Z

2021-05-15T07:00:00.0000000Z

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