Complaints against FSPs decline 32%

There has been a 32% reduction in the number of complaints to the Office of the Ombud for Financial Services Providers (Fais Ombud) against the 10 largest financial services providers (FSPs) in the past three years.

- Roy Cokayne

Fais ombud John Simpson on Wednesday said his office had noted this reduction.

He said when he enquired FSPs indicated they did not feel they needed to go to the ombud to resolve complaints.

However, he told parliament's standing committee on finance that 15 404 complaints were opened during the ombud's 2024-25 financial year almost 5 000 more than in the previous year.

"The largest category of complaints related to long-term insurance, which is mainly funeral policies," he said.

"That makes sense because the most commonly taken out policy in South Africa are funeral policies, which accounted for 52.84% of all complaints."

Simpson attributes the increase in complaints to increased consumer awareness.

Settlements or awards totalling R31.74 million were made to consumers in the year to end-March 2025 after complaints were lodged with the ombud.