SA banks improving their complaints process

According to Cas Coovadia, MD of the Banking Association of South Africa, local banks are increasingly internalising their complaint process by dealing with client queries and disputes themselves.

"Banks are improving the speed and turnaround time with which they solve queries between themselves and customers.

"This is a definite sign of an effective Ombudsman and a healthy dispute resolution process currently existing in our financial services sector," says Coovadia.

"While there is some limited concern around isolated cases of reckless lending, of greater concern is the issue of over indebtedness generally and banks are working closely with the National Credit Regulator to monitor this, and restructure over indebted borrowers where this is possible.

"In fact, all areas concerning reckless lending are dealt with and regulated by the National Credit Act and banks are generally acting responsibly in this regard.

"All claims should always be measured against the guidelines laid out by the NCA," says Coovadia.

"The National Credit Regulator has the power to look at the issue of whether the banks are lending recklessly and is the arbiter in these matters.

The National Credit Act was designed to protect the consumer and we welcome the NCR's ruling regarding any current cases of reckless lending.

"There always needs to be a mutual responsibility borne between the borrower and lender and this is regulated effectively by the NCA which was legislated for this purpose," he said.

Coovadia said SA banks were among the best in the world in terms of efficiency and infrastructure and remain well capitalized and profitable.

He cautioned that the NCA is very clear on the severe consequences of lending recklessly.

However he also said cases of reckless lending in SA, are in reality, few and far between.