The National Financial Ombud Scheme's Banking Division recovered over R60 million for consumers in 2025, primarily through fraud-related refunds. Officials emphasized that dishonest applicants cannot later claim reckless lending under the National Credit Act. The division's interventions also included returning repossessed vehicles and writing off debts to provide life-changing relief.
In 2025, the National Financial Ombud Scheme (NFO) Banking Division achieved significant recoveries for consumers, totaling more than R60 million. Lead ombud Nerosha Maseti highlighted that most refunds stemmed from fraud cases, but the division's efforts extended further. These interventions delivered substantial benefits, such as the return of repossessed vehicles, the writing off of debts—including prescribed debts and overcharged interest—and measures to prevent property sales at auction.
Maseti stressed the broader impact: “Our work is not only about resolving individual complaints; it’s about driving improvements that benefit all consumers.” The recommendations prompted banks to enhance internal processes, bolstering consumer protection and elevating industry standards.
Collection complaints remain prevalent amid widespread overindebtedness. The National Credit Act mandates affordability assessments by lenders, but it also requires consumers to provide accurate information. Reana Steyn, head ombud and NFO chief executive, clarified: “You cannot rely on the defence of reckless credit if you have not given truthful information.” The division evaluates cases with fairness toward both parties, considering legal and equitable angles.
Maseti urged transparency: “Transparency protects your financial future and upholds the integrity of the credit system. The NFO urges consumers to answer honestly and ensure all information is up to date and correct when applying for credit.” Investigations into reckless credit focus on the borrower's circumstances at the loan's origination, not subsequent hardships. Steyn noted that many misunderstand this, assuming current difficulties retroactively deem loans reckless.
Persistent debt affects credit records, hindering future opportunities even after financial recovery. Ahead of the festive season, Steyn cautioned against excessive spending and new credit accounts, warning of potential debt stress in the new year, especially without bonuses to offset December expenses.
Fraud dominates complaints, with mobile and internet banking fraud comprising 39% of cases and a 15% rise in online incidents during 2025. Scammers increasingly employ AI to impersonate banks, tricking consumers into transfers, and clone numbers to evade detection.
