The Credit Ombud says more consumers are becoming inquisitive and meticulous when looking at their credit statements.Resolutions of disputes that were in favour of consumers by the Credit Ombud fell in 2022, but the body says there they are becoming more informed.
The body, whose role is to resolve disputes impartially, released its 2022 annual report on Wednesday, which showed the number of complaints resolved in favour of credit consumers fell to 64% from 69% in 2021. However, total savings for the consumers were R3.85 million, which is a 47% surge compared to 2021.
But he also said that last year, the ombud started getting complaints from"more informed" consumers as well."Every cent counts in this financial climate." Luckily, the Credit Ombud did not see a significant increase in these areas in 2022. However, it is eyeing a potential increase in 2023 as interest rates have risen by 125 basis points since the start of the year. Standard Bank is forecasting another 25-basis-point interest rate hike in July, while FirstRand has also said further hikes are likely.
But when they followed up in 2021 to check whether the account was closed, the bank informed the customer that there had been a shortfall between the resale of their car and their outstanding debt. Because of that call – and despite pleading with the bank that they couldn't afford the shortfall – the Credit Ombud found that the prescription period had been disrupted.