From fraudulent purchases on customers’ accounts, accusations of reckless lending to inaccurate handling of credit information – these were some of the 3,643 new disputes that the office of the Credit Ombud handled last year, according to its annual report released recently.
The Credit Ombud oversees disputes between consumers and credit providers. In 2020, it settled 64% of the disputes in favour of consumers, saving them a total of R3.85m. Of the 3,643 disputes lodged, only two could not be finalised before the end of the financial year.
“There was a significant improvement in the average number of days to close a case from 44 to 33 days. Overall, these numbers reflect a decline compared to the previous year and we can only surmise that some credit providers and the credit bureaus are resolving consumers’ disputes more effectively so that there is no need to escalate the matter to our office,” said Kabelo Teme, the spokesperson of the Credit Ombud office.
She said the office has been joined by the Ombudsman for Banking Services, Ombudsman for Short Term Insurance and Ombudsman for Long-Term Insurance and will be operating from the same premises in Rosebank, Johannesburg, from next year.
Teme said though they dealt with many complaints last year, a few notable cases caught their attention. One was of a consumer who noticed that purchases were made on her account between November and December 2021.
“There were no receipts or evidence available to show that it was the consumer who made these purchases, and what supported the consumer’s submissions was that these purchases were made at locations that the consumer would not normally shop at,” said Teme.
After a lengthy investigation, the credit provider conceded that it would be unfair to hold the consumer liable for these purchases. The credit provider reversed these transactions and credited the account accordingly.
“In the absence of a clear and direct course of action, we are to use all surrounding circumstances to arrive at the most probable conclusion, a skill that we have harnessed over these past years,” said Teme.
In another case, a customer complained about an account that was settled directly with the debt collector who handed the account over for being in arrears for six months.
“For some or other reason, this settlement was not communicated to the credit provider in time, who updated the account to paid-up and closed six months after the actual settlement date. With our intervention, the payment profile was corrected to reflect the actual date of settlement and closure,” said Teme.
The Credit Ombud’s services are free of charge. A consumer may log a dispute provided the process of allowing the creditor 20 working days to resolve the matter has elapsed, the consumer may do so by calling the Ombud’s office on 0861 662 837; send an SMS to 44786 (free of charge) or send an email to ombud@creditombud.org.za.
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