“Know your ombud” episode 4

In the latest episode of our Know Your Ombud series, I am joined by Howard Gabriels, the head ombud for credit.

Credit providers are required to treat customers fairly, but consumers also have a responsibility to repay their debts.

Howard begins by explaining which cases are handled by his division. The credit ombud’s role is to ensure that consumers are treated fairly when it comes to their dealings with credit providers, and that they can seek redress from the ombud when they believe they have been wronged.

One of the key topics discussed is reckless lending. Howard explains that while this issue has improved over the years, it still exists. Consumers must be vigilant and aware of their financial situation, especially when applying for credit.

We take a look at the abuse of value-added services – when retailers add extra charges onto your store account without making these charges clear to you – and how this can escalate a customer’s debt.

Howard shares a case study where a consumer was charged for services they did not agree to. This case not only resulted in a refund for the consumer but also prompted the credit provider to change their policies, showcasing the ombud’s influence in creating fairer practices in the industry.

Finally, Howard stresses the importance of keeping the lines of communication open with your credit providers. It is up to you to take responsibility for the financial agreements that you enter into, and to be proactive in addressing any issues that arise.

By avoiding communication, you could cause more significant problems down the line.

Contact details

If you feel let down by a financial service provider, you can contact the appropriate ombud scheme via the links below:

• Ombud for Financial Services Providers (FAIS Ombud): Disputes related to financial advice
• Office of the Pension Funds Adjudicator (OPFA): Disputes related to pension funds
• JSE Ombud: Disputes related to the JSE
• National Financial Ombud Scheme (NFO): Disputes related to banking, credit, and insurance

This podcast series was created in partnership with The Ombud Council.