Release of 2004 Annual Report

20 April 2005

Five years after its restructuring as an entity independent of the banking industry, the Ombudsman for Banking Services (OBS) released its Annual Report for 2004 in Johannesburg on Wednesday, 20th April 2005.

The highlight of the report was the increased level of awareness by bank customers of the availability of the OBS's services. A survey conducted by Markinor in October 2004 showed that 44% of people questioned were aware of the existence of the OBS. This was double the level measured in the previous year and was neck in neck with the result of a prominent statutory complaint body.

In spite of the massive increase in awareness levels, there was only a 26% increases on the number of the files opened, to 2885. The output of the closed files matched this increase in workload.

The average closure time for files of 70 days was an improvement upon the average time of 83 days the previous year. Nearly two out of three files were closed within two months and all but 6 % were finalized within 6 months.

During the period an amount of R13.8 million was recovered from banks for the benefit of customers. Overall, 56% of complaints were resolved in favour of customers.

The Ombudsman, Advocate Neville Melville, remarked in the report that the banks accepted and implemented every recommendation made against them and there was no need to escalate any recommendation into a binding determination. The banks did not choose to apply to have any of his decisions reviewed by a retired judge, as provided for in the office's Terms of Reference.

Melville commented favorably on the improvement of in the attitudes of bank staff to his office and to receiving and dealing with complaints.

For further information on the OBS and the services offered, visit www.obssa.co.za or alternatively contact 0860 800 900.