Reana Steyn, Head Ombud and CEO of the NFO

Consumer education is at the forefront of activities by the National Financial Ombud Scheme (NFO) to commemorate Money Smart Week 2025.

Money Smart Week runs from 25 to 31 August under the theme “Smart Money: Financial Foundations for a Resilient Future”.

Empowering individuals to make sound decisions about their purchases of financial products and services and understand their rights as consumers, is widely recognised as crucial for promoting informed choices.

The NFO, an independent body that resolves complaints brought by consumers against South African financial institutions, hosts literacy programmes through ongoing consumer engagements with communities to make money matters understandable.

Head Ombud and CEO of the NFO, Reana Steyn, said the dispute resolution body exists to resolve disputes between consumers and financial service providers fairly and independently. “In the process, we also educate  consumers about their rights and obligations, for example, not to be overcharged for financial services, not to be mis-sold products or policies, and not to be subject to unfair decisions.

“Our on-going financial literacy campaign is driven by our responsibility towards all consumers, but particularly vulnerable consumers such as the elderly and disabled consumers,  to empower them to  understand and use financial knowledge to make informed and effective decisions about money.

“Hence, we have a strong policy in place regarding our extra duty of care towards people we identify as vulnerable complainants. Consumer education on a national basis is crucial for empowering citizens to make informed decisions, protect their rights, and contribute to a fair and sustainable marketplace, ultimately fostering a more responsible and equitable society.

“Our education campaigns provide consumers with easy access to information which can assist them in making informed choices, and taking appropriate action where necessary, in their own interests, and that of society,” said Steyn.

She said by nurturing an informed and empowered consumer base, consumer education contributes to a more level playing field in the marketplace, where businesses are more likely to engage in fair and ethical practices.

Priya Rajah, Head of Communications and Public Relations at the NFO, said by integrating our knowledge of complaint trends,  governance, stakeholder collaboration, and consumer education, the NFO ensures that vulnerable consumers receive consistent, fair, and effective support.

A vulnerable consumer is an individual who, due to personal circumstances, financial hardship, or external events, faces an increased risk of harm or disadvantage when interacting with financial services or following a loss event.

To this end, the NFO has put in place a Vulnerable Consumers Policy that ensures everyone receives fair, personalised care by addressing individual needs such as financial distress, age, disability, or life events. Through empathy, personalised support based on individual needs, and swift action, the NFO prioritises dignity and equitable outcomes for those most at risk.

“To promote financial literacy, we host workshops and digital education initiatives focused on budgeting, fraud prevention, and financial resilience.

“The NFO also organises regular  discussions with regulators, financial institutions, and consumer advocates to exchange insights and improve service delivery,” said Rajah.

In observation of Money Smart Week, the NFO offered consumers some financial guidance:

• If you are buying a funeral policy, always make sure that the salesperson has a licence from the Financial Sector Conduct Authority to sell insurance.

• Familiarise yourself with your bank’s process to follow if you have been the victim of fraud or if you are suspicious of any activity in your bank account.

• Take immediate action if you notice one of your cards is missing. Contact your credit provider and report your lost card immediately to prevent any fraudulent activity.

• Make sure that your life insurance premiums are paid every month on time. Keep proof of payment. If the premium is not paid, the policy may be terminated and a claim may be refused.

• Check your card and bank statements for signs of fraud monthly, especially for purchases you don’t remember making yourself.

• Never share your private credit information especially your PIN and passwords.

• It’s vital that you don’t cancel your non-life insurance or default on your insurance premiums as it is  in a time of crisis when you actually need insurance the most.

• Review your credit agreements and monthly loan statements for accuracy. Check your credit report regularly for discrepancies or suspicious accounts and raise concerns promptly with your credit provider, and if unresolved, approach the NFO for assistance.

ENDS