You need to watch out for these types of bills: banking ombud
Alongside the rising costs of petrol, school fees, and groceries – banking services have also increased with the introduction of a 15% VAT rate from 1 April.
However, this gives consumers the opportunity to rework their budgets and remember to include increases in their bank fees due to the VAT increase, said Ombudsman for Banking Services (OBS), Reana Steyn.
“This is a good time to assess the services you require for your personal (and business) banking needs, to shop around and see which bank has the most affordable fees for your needs. You may also check with your bank which fees can be negotiated,” she said.
Steyn noted that in line with the practice of other financial ombudsman organisations internationally, the OBS do not have jurisdiction over complaints about a bank’s general interest rate policy or schedule of fees.
However, the ombud may intervene in the instance that a bank charges a customer more than the agreed or publicised rate. There are also rates such as the repayment rate for home loans, which although vary from bank to bank, cannot exceed a set legal maximum.
“Banks charge a variety of fees for different types of transactions,” she said.
“It is in your best interests to obtain the bank’s list of charges and calculate the least expensive costs for your banking requirements. Most banks have their fees listed on their website so it’s quite easy to make comparisons,” Steyn said.
Third-party bills
Another area which has come under scrutiny is third-party bills.
Steyn said that the Ombuds office has been receiving an increase in complaints about suppliers’ emails being hacked, and invoices being sent to consumers for payment to account details that differ from those originally supplied.
Unless consumers are very diligent, they will pay the fraudster and still owe the money to the ‘real supplier’ in terms of their contract, said the Ombud.
So, scrutiny and verifying information before payments is very important, and even more so if the supplier advises you of a ‘change of bank account details’.
“Consumers should confirm in writing (correct email address) and by phone that the invoice details are correct and raise any concerns immediately to to safeguard themselves from any loss and inconvenience,” Steyn said.
How to complain?
The Ombudsman outlined the formal complaints process as follows:
- Lodge a formal, written complaint directly with your bank’s dispute resolution department.
- Ask for a complaint reference number from your bank.
- Allow the bank 20 working days in which to respond to your complaint.
- Obtain a written response from your bank.
- Consumers can contact the office of the Ombuds for Banking Services for free assistance if they experience any banking problems or would like to lodge a complaint against their bank.
Read: How the new VAT rate will increase the cost of your South African credit card
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