South Africans are increasingly turning to the National Financial Ombud Scheme (NFO) when disputes arise with lenders, and a growing number are walking away with the outcomes they were looking for. Complaints to the Credit Division surged by 58% during the year, while the total amount recovered on behalf of consumers more than tripled to R7.47 million, according to the NFO’s 2025 annual report. These figures point to an increasing reliance on the ombud process and offer a revealing glimpse into the financial pressures facing South African consumers, ranging from disputed debts and credit bureau listings to allegations of reckless lending and increasingly sophisticated fraud.
Key Takeaways
- Complaints surged but so did consumer wins: The NFO’s Credit Division saw a 58% rise in complaints during 2025, yet 62% of those cases were resolved in favour of consumers, with the amount recovered more than tripling to R7.47 million.
- Fraud is reshaping the credit complaints landscape: Digital financial crime, including vishing scams, unauthorised card use, and OTP misuse, is becoming an increasingly prominent feature of credit disputes, signalling that the ombud’s role is shifting well beyond traditional contract disagreements.
- The ombud is resolving cases faster and more effectively: Average turnaround time for formal complaints dropped from 79 to 57 working days, while the Credit Division achieved the highest complainant satisfaction score across all four NFO divisions at 76%.
A Year of Major Change
The figures emerge from a year of significant structural and operational change for the NFO.
In July 2025, the Banking and Credit divisions were merged into a single Banking and Credit Division, placed under the leadership of ombud Nerosha Maseti.
Maseti noted that the merger made strategic sense because banking and credit functions are closely intertwined, frequently involve overlapping complaint types, and require similar engagement with industry stakeholders.
The NFO indicated that bringing the two divisions together has improved knowledge-sharing across teams, strengthened technical expertise, and created a more holistic and integrated approach to resolving financial disputes.
The NFO was established to provide consumers with a free, independent, and impartial dispute resolution service. It operates across four divisions: Banking, Credit, Life Insurance, and Non-life Insurance.
The increase in complaints should also be understood in context. The NFO’s 2024 figures cover only the period from March to December, while the 2025 figures encompass a full calendar year. For this reason, the annual report uses monthly averages when assessing year-on-year trends to ensure a fair comparison.
Complaint Volumes at a Glance
The most notable shift occurred in complaints lodged at an early stage of the process. Premature complaints, which are matters referred to the NFO before a credit provider has had the opportunity to address the complaint through its own internal processes, increased from 1 099 in 2024 to 2,561 in 2025.
On a monthly average basis, premature complaints rose from approximately 101 cases per month to 213, meaning they more than doubled over the period.
Formal complaints rose from 1,410 to 1,893, while the average number of monthly formal complaints increased from 141 to nearly 158.
Consumers Increasingly Finding Relief
More complaints do not necessarily translate into more unresolved problems. In the Credit Division’s case, consumer outcomes improved alongside rising demand for assistance.
The number of matters finalised increased from 2,040 in 2024 to 2,854 in 2025, representing a 40% increase in cases brought to resolution.
The division also reduced the average turnaround time for formal complaints significantly, bringing it down from 79 working days to 57 days.
Consumer Outcome Highlights
| Metric | 2024 | 2025 |
|---|---|---|
| Complaints finalised | 2,040 | 2,854 |
| Amount recovered for consumers | Less than R2.5 million | R7.47 million |
| Average turnaround time | 79 working days | 57 working days |
| Complaints resolved in favour of consumers | Below 62% | 62% |
| Complainant satisfaction score | Not specified | 76% |
The division’s success rate improved significantly compared with the previous year. Over the past year, 62% of complaints were resolved in favour of consumers, meaning that in more than half of all cases, the division helped individuals obtain the redress they were seeking.
The Credit Division also achieved the highest complainant satisfaction score across the entire NFO at 76%, comfortably ahead of Life Insurance at 72%, Banking at 64%, and Non-life Insurance at 42%.
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What Are Consumers Complaining About?
The types of complaints reaching the ombud provide a useful window into the pressures facing South Africa’s credit consumers.
Store Cards and Personal Loans Lead the Way
Store cards and store accounts remained the most complained-about products during 2025. Disputes in this category centred on a range of issues, including:
- Value-added services attached to accounts
- Reversals of charges
- Service-related issues
- Allegations that accounts had already been settled
- Prescription of debt
- Fraud
Personal loan complaints were largely driven by the following concerns:
- Allegations of reckless lending
- Prescription disputes
- Disagreements regarding outstanding balances
- Accounts handed over for debt collection
- Contractual interpretation disagreements
- Statements of account discrepancies
Prescription of debt in South Africa generally means that a creditor may lose the legal right to enforce a debt after three years of no acknowledgement or payment, depending on the type of debt. If a credit provider attempts to collect on a debt you believe has prescribed, you can raise this as a defence and the NFO can assist in evaluating the matter.
The Credit Division also continued to handle complaints involving telecommunications credit products. These disputes typically involved contractual terms, the allocation of payments, overcharging reversals, paid-up letters, and failures to update credit bureau records.
Broader Challenges for Credit Consumers
Taken together, the complaints suggest that many consumers are struggling not only with debt itself, but also with understanding how credit agreements, collection processes, and credit reporting systems operate.
The report notes that many consumers who approach the Credit Division are financially stressed and may not fully appreciate the implications of the credit they have taken on. Complaints involving prescription, alleged reckless lending, collection processes, and credit bureau records all point to the challenges consumers face when trying to navigate increasingly complex credit arrangements.
A number of disputes also involved consumers who believed accounts had been settled, questioned balances claimed by credit providers, or challenged information recorded on their credit profiles. These complaints highlight the importance of clear communication, accurate record-keeping, and responsible lending practices on the part of credit providers.
A Changing Complaints Landscape
Fraud Takes Centre Stage
Many of these complaint themes are familiar to the industry, but the report points to a notable and significant shift in one key area.
Credit disputes are increasingly reflecting the same digital risks that have transformed complaints in the banking sector. According to the NFO, fraud-related complaints increased noticeably during 2025.
These included:
- Card-not-present transactions linked to vishing scams
- Unauthorised use of card details
- Misuse of one-time passwords (OTPs)
The report indicates that these matters often required more intensive investigation and engagement, reflecting the changing and evolving risks facing consumers in the credit market.
From Contract Disputes to Financial Crime
The trend was particularly evident in store-card and telecommunications-related complaints, where fraud, unauthorised transactions, and service-related disputes are becoming increasingly prominent features of the complaints landscape.
Historically, most credit disputes involved familiar issues such as affordability assessments, debt collection practices, and credit bureau records. However, the role of the Credit Ombud is now evolving, moving from primarily handling contract disputes to increasingly protecting consumers from the very real and growing impact of financial crime.
Industry Engagement
Resolving individual complaints represents only one part of the ombud’s broader role within the financial services sector.
The report indicates that the Credit Division engaged extensively with credit providers and industry stakeholders throughout the year to address recurring complaint themes and process-related shortcomings identified through case investigations.
These engagements focused on several key areas:
- Improving early-stage complaint resolution
- Reducing unnecessary escalations to the ombud
- Ensuring greater alignment with the NFO’s rules and processes
As a result of these engagements, participating credit providers committed to reviewing and refining internal processes relating to:
- Account closures
- Affordability assessments
- Complaint escalation mechanisms
- Credit bureau reporting accuracy
The NFO indicated that these engagements contributed to improved responsiveness and greater consistency in complaint handling across the industry. Participant engagement remained strong throughout the year, with all major credit providers continuing to participate in the ombud process.
A Growing Role
The figures collectively paint the picture of a division whose role is becoming increasingly important within South Africa’s financial services landscape.
More consumers are becoming aware of the ombud’s services and are willing to seek assistance when disputes arise. At the same time, the division is handling larger volumes of complaints, recovering greater sums of money for consumers, resolving matters in shorter timeframes, and securing favourable outcomes in a significant proportion of cases.
As complaint volumes continue to rise and financial crime becomes an ever-growing feature of the credit landscape, the role of the credit ombud appears to be expanding well beyond its traditional focus on contractual disputes.
To lodge a complaint with the NFO’s Credit Division, you can visit www.nfosa.co.za, call their helpline, or submit a complaint via their online portal. The service is free and available to all South African consumers who have been unable to resolve a dispute with a registered credit provider.
Conclusion
As complaint volumes continue to grow and financial crime becomes an ever-present feature of the credit landscape, the NFO’s Credit Division is proving itself to be an increasingly vital resource for South African consumers. The 2025 figures demonstrate that the ombud process is not only becoming more widely known, but is also delivering faster resolutions, stronger consumer outcomes, and greater financial relief than ever before. For consumers navigating the complexities of credit agreements, debt collection, and digital fraud, the message is clear: help is available, it is free, and it is working.
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