The National Financial Ombud Scheme (NFO) Banking Division recovered more than R60m for consumers in 2025, but warned that consumers who are dishonest when taking out loans or accessing credit cannot cry ‘reckless lending’ later. 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: “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. 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.
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“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. “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.
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.”
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