Consumer settlements rise

REPORT: 4 501 COMPLAINTS ABOUT FINANCIAL SERVICE PROVIDERS, RESOLVED 5 046 CASES

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In the previous financial year, the (Financial Service Providers) Fais Ombud's office received 4,501 complaints about financial service providers and resolved 5,046 cases.

According to its annual report, the ombud made an award in 35% of the cases, with R39.5 million in compensation awarded to consumers.

The main objective of the ombud is to investigate and resolve complaints in terms of the Financial Advisory and Intermediary Services Act and the Rules promulgated under the Act.

The office defines a financial services provider as anyone who, as a regular feature of his or her business, gives advice or gives advice and renders any intermediary service or intermediary service.

The ombud also resolves complaints in terms of the Financial Services Ombud Schemes Act (FSOS Act) that are not covered by any of the other voluntary ombud schemes or where there is uncertainty over jurisdiction.

The most valuable part of the report for consumers is the case studies where we learn from other consumers' complaints to see how they were resolved.

Most of the case studies in the Fais Ombud's annual report dealt with complaints about car insurance and in most cases the office was able to negotiate a settlement in favour of the consumer.

Insurers must be specific about the need for a tracking device

A consumer complained that his insurer would not pay out his claim in full after his bakkie, with his business tools and personal items, including his wife's ring, were stolen while on holiday.

The insurer was happy to pay for his vehicle claim, but said there would be an additional theft excess as the bakkie was not fitted with a tracking device.

The vehicle finance account would also not be fully settled as the outstanding balance was more than the bakkie's retail value.

The insurer would also not pay for the wedding ring as it was not listed on the policy.