Credit Providers Under Scrutiny: 62% of Consumer Complaints Resolved in Favour of Consumers

The Headline Number: 62% in Favour of Consumers

For years many South Africans assumed that complaining about a credit provider was a waste of time — that the banks, lenders and collection agencies always held the upper hand. The latest complaint data tells a very different story. Where credit-related complaints reach a formal outcome, 62% are now resolved in favour of the consumer.

That figure matters. It means that incorrect listings are being removed, unlawful charges are being reversed, prescribed debts are being written off and consumers are receiving refunds and corrections. It is hard evidence that the system, while imperfect, increasingly works for people who know their rights and use the right channels.

The lesson for consumers is simple: escalation works. The complaints that succeed are the ones that are documented, persistent and routed to the right forum — whether that is the credit provider's internal dispute team, a credit bureau, the National Financial Ombud or an independent platform like CRESA.

Escalation works—the complaints that succeed are documented, persistent and sent to the right forum.

Why Credit Providers Are Under Scrutiny

A high resolution rate in favour of consumers is, in part, a reflection of how many complaints were valid in the first place. The most common credit provider failings include:

• Incorrect credit listings: Accounts reported as in arrears or in default when they were paid, settled or never belonged to the consumer.
• Reckless lending: Credit granted without a proper affordability assessment, in breach of the National Credit Act.
• Failure to update records: Paid-up or settled accounts not being marked as such, leaving consumers locked out of further credit.
• Aggressive debt collection: Pursuit of amounts that are overstated, already paid, or legally prescribed.
• Poor complaint handling: Long delays, no reference numbers and no genuine investigation of the consumer's dispute.

When these failures are challenged formally, the evidence usually favours the consumer — which is exactly why the resolution rate is so high.

The Role of the National Financial Ombud

The National Financial Ombud (NFO) Scheme South Africa is one of the most powerful tools a consumer has — and it is completely free to use. The NFO handles disputes against banks, credit providers and insurers, and can issue findings that are binding on the financial institution.

To use the NFO effectively:

• Complain to the credit provider first and get a written final response (or wait the prescribed period).
• Gather your evidence: statements, contracts, payment proof and correspondence.
• Submit your complaint with a clear description of the outcome you want.
• Keep every reference number and follow up in writing.

The NFO's existence is one of the reasons resolution rates have improved: it gives consumers an independent, no-cost route to a binding decision when a credit provider refuses to put things right.

Incorrect Credit Listings and Bureau Disputes

A single incorrect listing on your credit record can block a home loan, a vehicle finance application or even a job. The good news is that the National Credit Act puts the burden of proof on the credit bureau, not on you.

When you dispute information, the credit bureau must investigate within 20 business days and remove or correct any data it cannot verify — at no cost to you. If the bureau or the credit provider fails to act, you can escalate to the National Credit Regulator, the Credit Ombud (now part of the NFO) or raise it publicly through a CRESA complaint.

Always start by getting your free annual credit report, checking every listing, and challenging anything that is inaccurate, outdated or unfamiliar.

Debt Collection, Prescription and Judgments

Debt collection complaints make up a large share of disputes resolved in favour of consumers — often because collectors pursue amounts that are no longer legally enforceable.

Prescribed Debt

Under the Prescription Act, most consumer debts prescribe after three years if you have not acknowledged the debt or made a payment, and no legal action has been taken. A prescribed debt cannot be revived simply by demanding payment, and re-listing it is unlawful.

Debt Collection Conduct

Collectors must act lawfully: no harassment, no inflated balances and no collection of unlawful fees. If you are being pursued unfairly, you can challenge it — see our guidance on debt collection complaints.

Judgments

A judgment taken without proper notice, or one that has since been settled, can be rescinded or removed from your record. Many consumers are unaware that a paid judgment must be cleared from their credit profile.

Your Rights Under the National Credit Act

The National Credit Act 34 of 2005 is the foundation of consumer protection in South Africa's credit market. As a consumer, you have the right to:

• Be assessed for affordability before credit is granted
• Receive clear, transparent information about fees and interest
• Access your credit record and dispute inaccurate information for free
• Apply for debt review if you are over-indebted
• Transfer between debt counsellors and obtain a clearance certificate once you complete debt review
• Be protected from reckless lending and unlawful collection

Knowing these rights is the single biggest factor behind successful complaints. The 62% resolution rate is, ultimately, a story about consumers who refused to accept unfair treatment.

The 62% resolution rate is, ultimately, a story about consumers who refused to accept unfair treatment.

CRESA's View

A 62% resolution rate in favour of consumers is encouraging — but it should not be mistaken for a system that is fully fair. Many valid complaints are never lodged because consumers assume they will lose, do not know where to turn, or give up in the face of delay and bureaucracy. The real number of consumers being treated unfairly is far higher than the complaints data shows.

CRESA exists to close that gap. By giving consumers a credible, independent and public channel to raise credit-related complaints, we make it harder for credit providers to ignore legitimate disputes — and easier for ordinary South Africans to assert the rights the law already gives them.

If you believe a credit provider, debt collector or credit bureau has treated you unfairly, act on it. The data shows your complaint has a strong chance of success.