Revised terms of reference for the ombudsman for banking services (OBS) were unveiled in Johannesburg on Thursday.
The terms outline the OBS’s principles, powers and duties when considering disputes.
The OBS exists to provide individual and small-business bank customers with a fair, quick and effective dispute resolution process, free of charge.
It provides an informal, easily accessible alternative to other remedies, such as court proceedings.
Ombudsman Neville Melville said the previous terms of reference came into existence in 2000.
The latest terms are more relevant and allow greater access to the OBS.
”Large numbers of people can now turn to the ombudsman for support, as opposed to pursuing costly legal action,” Melville said.
Eligible complainants are private individuals and small businesses, including a sole proprietor or trader, a juristic person, and partner or trust that has a turnover in a financial year of less than R5-million.
The OBS will also assist people who have suffered some significant monetary loss, distress or inconvenience as a result of a bank’s conduct.
Individuals who have tried unsuccessfully to resolve the dispute through approaches to the bank are eligible for assistance.
The OBS cannot consider a complaint or dispute that relates to an amount that exceeds R800 000.
Jurisdictional limits of the OBS also include:
- A case that is pending litigation, or that is more appropriately dealt with by a court of law;
- Claims brought in an unreasonable manner;
- Claims brought in a frivolous, vexatious, offensive, threatening or abusive manner; and
- An act or omission that is more than three years old.
If complainants are not satisfied with outcome of their complaints they may request the OBS to make a binding determination or ask a retired judge on the panel to review the determination.
Melville said the OBS used to be known as the banking adjudicator but it was changed after Markinor research revealed that more people knew what an ombudsman was, as opposed to an adjudicator.
”The ombudsman is a well-known concept with emphasis on mediation. The name change was in line with international best practices.”
A new OBS logo was also unveiled at Thursday’s function.
The OBS’s board of directors comprises Ina Wilken, Helm van Zijl, Thandi Orleyn, Dr Motlatla, Viv Barlett, Venete Klein and Bob Tucker. The board chairperson is advocate John Myburgh. — Sapa