Reana Steyn - head ombud of the National Financial Ombud Scheme. (Photo: Supplied) 
The lead ombud for the National Financial Ombud Scheme’s (NFO’s) Banking Division, Nerosha Maseti, confirmed that the division recovered more than R60-million in 2025. While the majority of refunds were returned to consumers in fraud-related cases, the NFO’s recommendations extended beyond monetary compensation.
The division’s interventions have delivered “life-changing impact”, including:
- The return of repossessed vehicles;
- The writing-off of debt, including confirmation of prescribed debt or overcharging of interest; and
- Measures to avoid the sale of property at auction.
“Our work is not only about resolving individual complaints; it’s about driving improvements that benefit all consumers,” said Maseti.
She noted that the division’s recommendations had driven significant changes in banks’ internal processes and procedures, strengthening consumer protection and improving industry standards.
Reckless credit
Collection-related complaints remain high as many consumers, who are often overindebted, continue to face financial challenges. While the National Credit Act (NCA) obliges credit providers to conduct an affordability assessment, it also holds consumers accountable to provide truthful and complete information.
“You cannot rely on the defence of reckless credit if you have not given truthful information,” said Reana Steyn, head ombud and chief executive of the NFO.
In these cases, the division must treat both the banks and consumers with fairness.
“Our responsibility is to look at the different scenarios and see if there is anything we can do to assist [consumers] from a legal point of view, but also just from a fairness [point of view],” said Steyn.
What happens if you provide false information when applying for a loan?
The consequences of providing false information can include:
Application rejection: Credit providers verify details through credit bureaus and with supporting documents. Should they detect that fraudulent or false information has been provided, the application will be rejected.
Legal consequences: Misrepresentation may constitute fraud and could lead to a listing on the Southern African Fraud Prevention Services database.
No reckless credit defence: If you provided incorrect information, you cannot later claim the credit was granted recklessly, and you will be liable to repay the full amount owing (plus any interest and charges).
“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,” said Maseti.
The need for financial literacy
Steyn said that consumers often do not understand what conditions make a loan reckless. The NFO’s investigation into a reckless credit complaint focuses on the consumer’s financial situation at the time the loan was taken.
“Consumers think that their difficult financial circumstances now make the loan reckless,” said Steyn. “But it’s only [based on] what happened at that time when they took out the loan.”
Steyn said consumers needed to understand the implications of having debt and not being able to repay it.
“The debts will sit on your credit record [and] affect the next thing you want to do even if your financial position is improved,” said Steyn.
Festive season alarm bells
Steyn urged consumers to be mindful of their spending over the festive season, cautioning that if they open any new accounts, they should bear in mind that there could be dire consequences if they are unable to keep up the repayments.
“We find that people are often very debt-stressed in the beginning of the year,” said Steyn. “Not everyone gets bonuses, but somehow the expenses over December are more.”
The rising threat of AI
Fraud is the highest complaint generator for the banking division, with mobile and internet banking fraud accounting for 39% of all cases. The division recorded a 15% increase in online banking fraud complaints in 2025, indicating that fraudsters are becoming more sophisticated.
Fraudsters are increasingly using AI to deceive consumers, convincing them that they are speaking with their banks and persuading them to transfer funds directly to the fraudster’s accounts. Some scammers clone or copy bank numbers, making it difficult to distinguish between legitimate calls and fraudulent ones. DM