Banks Reduced ATM fees give Standard Bank Customers more access and convenience

The Ombudsman for Banking Services has received a record number of complaints against banks. AdobeStock

SA Banks Latest: FNB tops the list of complaints to ombudsman

Consumer complaints against banks have soared with the exception of just one bank that saw a drop in the number of unhappy clients.

Banks Reduced ATM fees give Standard Bank Customers more access and convenience

The Ombudsman for Banking Services has received a record number of complaints against banks. AdobeStock

Consumer complaints to the Ombudsman for Banking Services (OBS) hit a record high with her office putting a total of R16 million back into the pockets of consumers in 2020.

Most banks, with the exception of ABSA, therefore experienced a spike in the number of complaints taken to the OBS by consumers last year.

This is according to the latest OBS annual report which was released this week. The report revealed that the OBS opened a record total of 7 717 formal cases, compared to 6 472 in 2019,  reflecting a 19% increase in  the number of complaints.

However, OBS, Reana Steyn, said she was pleased that her office had managed get a total of R16 million back into the hands of consumers

Only Absa Bank recorded a reduction in the number of complaints, which were down 36% year-on-year.

 Steyn cautioned that the number of files opened against a bank should not necessarily be regarded as an indication of that bank’s overall or complaints handling performance.  She said banks varied in size, client profile and product mix. In addition, fraudsters seemed to periodically target certain groups of customers.

The following number of formal cases were opened against the five big banks in 2020:

·       Absa bank saw the number of complaints opened against it with the OBS decrease from 1 483 in 2019 to 943 cases in 2020 (a 36% decrease from the previous year);

·       First National Bank had 2 197 complaints opened against it (a 22% increase from 2019);

·       Standard Bank had 1 572 complaints opened against it  (an increase of 28% in the number of the complaints );

·       Nedbank had 1 217 cases opened (an increase of 10%); and

·       Capitec had 1 259 cases opened against it (a 39% increase).

“As we move forward in this challenging environment, we encourage consumers to have an open relationship with their bank and know that they can come to the OBS if they cannot be assisted. Further, we urge consumers to be aware that the current environment is heavily conducive to fraud,” the OBS said.