Rural South Africans file one-third of financial complaints, says Ombud
The National Financial Ombud has revealed that a significant number of financial complaints come from rural and small-town areas across South Africa.
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The National Financial Ombud has revealed that a significant number of financial complaints come from rural and small-town areas across South Africa.
IOL previously reported that the financial watchdog, established a year ago, has recovered approximately R328.5 million for consumers who lodged complaints against financial institutions across the country.
Furthermore, the NFO revealed that between March 1, 2024, and December 31, 2024, it handled 35,855 complaints.
The NFO is an independent body that helps consumers resolve disputes with banks, insurers, and credit providers. It acts as a watchdog for fair treatment and helps people get their money back when things go wrong.
Reana Steyn, the Head Ombud and CEO, emphasised that many complaints originate from rural and small-town areas. She also highlighted the importance of making financial assistance easily accessible, especially for vulnerable populations.
“It is significant that small towns and rural/farm areas accounted for 32,10% of all complaints,” said Steyn.
Haroon Laher, Chairperson of the NFO, urged financial service providers to recognise the growing gap between different types of consumers.
“The lessons learnt from the root causes of complaints can avoid repetitive grievances. The NPO will work towards ensuring inclusivity for financial services and products and, thereby, help to bridge the gap between the urban and rural, the sophisticated and vulnerable and the disadvantaged,” Laher said..
Steyn noted that complaints vary by province. Gauteng had the most at 42.18%, followed by the Western Cape (19.14%), KwaZulu-Natal (14.07%) and the Eastern Cape (7.6%). Smaller provinces like Mpumalanga, Limpopo, North West, and the Free State had fewer complaints. The Northern Cape made up just 2.09%.
“This geographic diversity highlights the work that we still need to do to ensure that every consumer, regardless of location, has equal access to justice,” Steyn said.
The data also indicated that women filed more complaints than men, with females making up 55.55% of complaints and males 44.34%. Non-binary individuals represented 0.03%, and 0.09% preferred not to disclose their gender.
By race, 53.53% of complaints came from Black consumers, followed by Whites at 26.77%, Coloureds at 10.41%, and Asians at 9.29%.
"Highlighting the financial services woes of those who are vulnerable, it was reported that those who earned between R0 – R80 000 per annum were responsible for 49,63% of complaints. Complaints totalling 201 came from those between 65 and 75 years and 66 complaints were lodged by those between 75 and 85 years."
mthobisi.nozulela@iol.co.za
IOL Business