On our YouTube Channel, you’ll find short videos where NFO team members share their top tips for smarter money management. These include ensuring adequate insurance cover and staying safe from scams when banking online. Plus, discover the importance of always reading – and understanding – the small print before you sign a contract, loan agreement or insurance policy.
“Smart Money : Financial Foundations for a Resilient Future”
NFO TIPS TO ENHANCE YOUR FINANCIAL WELLBEING
Ensure that you know the security requirements specified by your insurance policy for your home and vehicle, and that they are implemented as soon as possible.
Inform your insurer as soon as possible of any changes to your circumstances, such as when you buy or sell a motor vehicle.
Ensure that your household contents and your home are insured for the correct replacement values. If you are under insured, your insurer may apply “average”, as set out in the wording of your policy, to a claim. This may result in a significantly reduced pay-out.
Security requirements for theft and hijack should be contained in your motor vehicle insurance policy. Ensure that you comply with these requirements in order to have cover in the event of a loss.
An insurer may reject your claim for non-compliance with a policy requirement. For example, if a tracking device is required, it must be in a good working order at all times and it is your responsibility, as the policyholder, to ensure this. Due to the high risk of hijacking, some insurance policies require motorists to install two fully functional tracking devices as a safety precaution, especially on certain makes of vehicles that are frequently targeted. If this is the case, it is your responsibility to fulfil this condition.
Read your policy documents, including the policy wording and the schedule. This will help you understand which claims your insurer will or will not settle and assist you with submitting valid claims. If something in your policy doesn’t make sense, ask your broker or your insurer to explain it to you.If you are unhappy with the findings of a report obtained by your insurer, when they are in the process of validating a claim, and you want to challenge these findings, you can obtain your own report to assist you with your claim.
Always ensure that the correct information is provided by you when you apply for insurance cover – this may affect whether the insurer offers you cover, and on what terms and conditions.
If you do not understand what information you are being requested to disclose by your insurer, ask your insurer or broker to explain it to you. Remember that inaccurate or incomplete information may affect your cover, which may, in turn, affect you when you claim.
Your policy will contain strict time limits for reporting claims and potential claims. Make sure you are familiar with these limits and always notify your broker or insurer as soon as possible after an incident.
Make sure that your property is insured for the correct value. Even though the insurer may increase your premiums annually due to inflation, most policies state it is your responsibility, as the policyholder, to check that all the items on the policy are insured for their correct replacement value.
Check your policy regularly and update it, if necessary, for example, if you upgrade your phone to a newer, more expensive model or purchase home contents, or add after-market accessories to your vehicle.
Know your policy: the cover, exclusions, and conditions. This will help you to understand whether your insurer was correct in rejecting a claim, or if you should dispute the rejection.
Keep records of everything to do with your insurance, retain correspondence, invoices and photographs that could be useful in terms of establishing the facts involved in any dispute. Always stay calm and polite when dealing with your insurer. This will make the claim’s process smoother and easier for everyone.
Try and keep up to date with changes in laws, regulations, and consumer rights. This knowledge may help you in a dispute with your insurer.
Review your policy schedule each year and update the replacement values of your insured items if necessary. Remember, if your insurer agrees to settle a claim, you may not be paid the amount that you originally paid for the item, but rather the cost of replacing the item at the time of the loss / damage. So, if you bought a phone in 2022 for R10,000 and insured it for this amount, but the same phone only costs R8,000 in 2024, your insurer will only settle your claim for this lower amount, being its replacement value at the time of the loss.
Keep up with regular maintenance to your property to prevent damage and avoid the risk of your insurer rejecting a claim on the basis of wear and tear and a lack of maintenance.
Always provide true and complete information regarding all aspects of your insurance policy, including ensuring that you notify your insurer of any changes that happen after the start of the policy. This is your responsibility throughout the entire duration of your insurance policy.
In the event of a claim, and depending on the damage, it may be a good idea to appoint your own service provider or assessor to provide a report that you can submit to your insurer.
If you upgrade your phone, it’s important to remember that your insurance does not automatically transfer from the old cell phone to the new one. You need to tell your insurer that you want cover for your new phone.
It is a standard requirement in cell phone insurance offered by cell phone providers that you use your device with the cell phone number noted on the insurance policy at the inception of cover. If you want to use a different number, you must notify your insurer so that your phone remains covered by the policy.
Failure to comply with the law and with the terms and conditions of your policy may result in claims being rejected. It is important to make accurate disclosures and to provide true and complete information to your insurer at all times.
Make sure that you are not under-insured, especially when it comes to your household contents. Take an inventory of your contents and compare it with the insured value noted on your coversheet, then adjust your insured value as needed.
Always read your updated policy documentation. Often your insurer will make changes to your cover when they renew your policy. Look out for changes to your premium as well as your excess amounts. If you have any queries, contact your insurer or broker for clarification.
When comparing insurers, the price of the premium should not be the only consideration. A lower premium may seem attractive but be certain to also check the level of cover you receive in return. Ideally, you should choose an insurer that offers a competitive premium rate in addition to a comprehensive policy that doesn’t come with many restrictions or exclusions.
When applying to the NFO for assistance, concisely set out the details of your complaint. Wherever possible, only raise issues that are still in dispute.
When submitting a complaint to our office, ensure that it is accompanied by all the relevant documentation; this will assist us in dealing with your complaint efficiently and timeously.
Know the coverage period of your insurance, that is, how long it runs for. Any claims must be made within this period.
Contact your insurer as soon as you become aware of damage or a loss that may be covered by your policy. If you delay, this may affect the result of your claim. Also be sure to complaint the claim form properly and provide all the required information.
Take photos and / or videos that clearly show the nature, cause and extent of the damage or loss you are claiming for.
Know your rights: you can approach the NFO for free assistance if your claim is rejected.
For help with understanding your policy or with making a claim, you can consult an insurance broker for professional advice.
In the case of a motor vehicle claim, you must pay the excess amount, regardless of who was at fault or who caused the accident.
Remember that premiums are paid in advance. If the premium was not received by your insurer for a specific month, then you are not covered for that month. To enjoy continuous cover and peace of mind, always pay your premiums on time.
If you do not pay the first premium at the start of your policy, your cover will not begin as the 15-day grace period does not apply to the first premium payment.
You are advised not to simply put a stop payment order on your premium payments because this will result in your policy being cancelled. Instead, speak to your insurer or broker before terminating your policy.
You have a duty in terms of your policy to assist your insurer with any relevant information that they have reasonably requested in order to validate a claim or assess a risk.
Make sure that you give your correct contact information to your insurer at the start of your policy and update your insurer with any changes to your details or circumstances.
Pay attention to emails and letters from your insurer as these may contain changes to your cover or the requirements of your policy.
Do you have GAP medical cover in place to cover you in the event of a shortfall following a medical aid claim settlement? This type of policy can provide you with additional cover but make sure you understand the terms and conditions of this type of cover.
NFO TIPS TO PROTECT YOURSELF AGAINST BANKING FRAUD
Understand Your Rights
You have the right to clear, honest, and timely information about banking products and services.
Banks must treat you fairly and without discrimination, regardless of your background or income.
Ask for Suitable Advice
Where advice or recommendations are provided, banks should take your personal needs, objectives and financial circumstances into account. Banks must also provide clear information and explanations to help you make informed decisions.
Don’t hesitate to ask questions or request explanations in plain language.
Read and understand the terms and conditions before entering into an agreement with your bank.
Know Your Responsibilities
> Always provide truthful and accurate information when applying for accounts or credit.
> Understand and plan for any payments which you will be required to make.
> Inform your bank as soon as possible if you’re struggling to meet your financial obligations.
Protect Yourself Against Fraud
> Take reasonable steps to safeguard your account, such as protecting your PIN number, passwords, and devices.
> If your phone or other device is lost or stolen, call your bank immediately to delink your banking app from your device, and to allow your bank to take any other actions that may be necessary to protect your accounts.
> Scammers may call you pretending to be from your bank. If you receive an unexpected call claiming to be from your bank (even if the number appears to be your bank’s number), end the call and contact the bank using the number printed on your bank card or published on its official website.
Be cautious if a caller creates urgency or pressure to act immediately. Remember, your bank will never ask you to:
> Make a certain transaction.
> Create a beneficiary.
> Give your personal information, OTP, PIN number, card details or scan a QR code.
> Download any application or remote-access software to your device, such as AnyDesk.
Be skeptical of social media promotions:
> Verify legitimacy: Check official airline websites or verified social media accounts before engaging.
> Avoid sharing personal info: Never post your phone number or sensitive details publicly.
> If it seems to good to be true, it probably isn’t.
Think Twice Before Downloading Apps:
> Use trusted sources: Only download apps from verified developers with strong reviews and a high download count.
> Check permissions: Be wary of apps requesting access to your camera, contacts, or banking apps.
Never click on a link in an SMS or email that asks you to:
> Update or verify your personal information
> Sign in to online banking
> Never share your banking passwords, PIN number or OTPs with anyone – not even family or friends. Your bank will never call, SMS, email, or direct message you to ask for this information.
Criminals can generate virtual cards using your account if they gain unauthorised access to your online or mobile banking. This can happen through:
> Phishing emails or fake websites that steal your login credentials.
> Malware or spyware installed on your devices.
> Weak or reused passwords that are easy to guess or have been exposed in data breaches.
Once they have access to your account, fraudsters can:
> Create virtual cards under your name.
> Use these virtual cards to make unauthorised purchases.
> Link them to digital wallets or subscription services for repeated fraud.
Know What You’re Paying For
> Banks must clearly disclose all fees, charges, and interest rates before you sign up.
> Review your statements regularly and ask about anything you don’t understand.
> Understand the features, fees, and benefits of your accounts.
> Compare products across banks to find the best fit for your needs.
Switching Banks is Your Right
You may switch your transactional account to another bank. Banks should provide assistance and information to help facilitate the switching process.Banks must ensure services are accessible to vulnerable customers, including the elderly, disabled, or financially inexperienced.
You can request support or additional assistance if you are in one of these categories.
Stay Informed
Banks are obliged to promote awareness of your rights and responsibilities, so be sure to take advantage of the educational resources they provide.
Build Trust Through Transparency
Maintain open communications with your bank and keep records of all important interactions.
Use Complaint Channels
If you feel your bank hasn’t treated you fairly, use their complaints resolution process.
If your complaint is still unresolved, you can contact the National Financial Ombud Scheme South Africa (NFO) for free, fair and impartial assistance.
Monitor Your Accounts Regularly
Check your account statements and transaction alerts regularly. Report any unauthorised or suspicious transactions to your bank immediately.
Keep Your Information Updated
Ensure that your bank has your current contact details. Promptly notify your bank if your cellphone number, email address, residential address or other personal information changes.
Code of Banking Practice
The banking industry in South Africa subscribes to the voluntary Code of Banking Practice, which sets out the rights and responsibilities of both banks and their customers. If you would like to learn more about what you can expect from your bank, as well as your own responsibilities when using banking services, you can read the Code of Banking Practice here (include a link to the Code of Banking Practice).
NFO TIPS ON YOUR RIGHTS, RESPONSIBILITIES, AND PROTECTION AS A CREDIT USER
Always Request a Pre-Agreement Statement and Quotation:
This is a free document that must be given to you before you sign a credit agreement. It will tell you the full cost of the credit, including the interest you will be charged, the fees you will have to pay, and your monthly repayment amounts, so you can compare offers and choose the credit agreement that’s best for you.
Take Your Time to Review It:
A Pre-Agreement Quotation is valid for five business days. Use this time to shop around, ask questions, and make sure that you understand what you are agreeing to.
Never Sign Under Pressure:
If a credit provider or store agent pressures you to sign immediately, walk away. You have the right to the time and space you need to understand the credit terms fully. If you sign in a rush you may regret your haste later.
Borrow for Needs, Not Wants:
Avoid using credit for luxury or impulse purchases. Responsible credit use builds financial stability over time, rather than burdening you with debt taken on for unnecessary items.
Understand the True Cost of Credit:
The total repayment amount is what you will actually pay. This this includes the loan amount, interest, fees, and any insurance. Remember that buying an item on credit will ultimately cost you more than its actual purchase price, and ask yourself if you can afford the total amount you will end up paying, as well as the monthly instalment amount.
Pay On Time, Every Time:
If you miss a payment or make a late payment, you could be charged extra fees or arrear interest. This could also lower your credit rating. Use debit orders or set reminders to make sure you keep up to date with your payments.
Pay More Than the Minimum Amount:
Credit cards and retail store accounts are convenient but can soon become very expensive if you only pay the minimum amount each month. This will lead to you paying off your debt for longer, and increase the total amount you end up repaying.
Avoid Taking On More Credit If You Are Already Struggling:
Taking on more credit to help you pay off existing debts will only make the situation worse. Rather avoid further borrowing, unless you arrange a loan consolidation which could help you manage your debt situation.
Know Your Credit Profile:
You can request a free credit report once a year from all the major credit bureaus (TransUnion, Experian, Compuscan, XDS). You should also do if this if you suspect you have been a victim of fraud. Always check your credit report carefully for any mistakes or suspicious activity.
Keep a Lid On Your Debt:
Try and keep your total monthly credit repayments below 30% of your take-home income.
If You’re in Financial Distress, Ask for Help:
Contact your credit provider as soon as you struggle to meet your instalments. The sooner you reach out to them, the more options you may have.
Request a Payment Holiday or Reduced Instalments:
Some credit providers offer payment holidays or reduced repayments if you are under financial strain. These options can help you get your finances back on track (although they may end up costing you more in the long term).
Ask for a Restructured Payment Plan:
Your credit provider may offer to extend your loan term, reduce your instalments, or change the repayment structure. Make sure you get a copy of any new or revised agreement in writing.
Consider Voluntary Surrender of a Financed Asset:
If you can no longer afford a vehicle or other large item bought on credit, you may be able to return it to the credit provider for them to sell on auction. This may be a painful decision, but could significantly reduce the amount that you owe. However, if there is a shortfall after the auction sale, you will still be liable to repay this amount. If you have assets that you cannot pay for, your creditors can also follow legal processes to recover these items from you.
Consider Debt Counselling:
If you feel that you are drowning in debt, a registered debt counsellor can negotiate with your credit providers on your behalf and restructure your debt under legal protection. If you choose this option, avoid the risk of scammers by ensuring that you use a debt counsellor who is registered with the National Credit Regulator (NCR).
Report Lost Documents Immediately:
Identity theft can lead to fraudsters borrowing money in your name. Immediately report lost identity documents, credit cards and store cards to your credit providers to prevent fraud.
Be Careful Who You Share Your ID With:
Only give copies of your ID, payslips or bank statements to verified employees of authorised credit providers.
Avoid Applying for Credit via Social Media or Informal Agents:
Stick to recognised financial institutions. Applying for credit from unregistered credit providers is not only risky – it’s also illegal. Only NCR-registered credit providers are allowed to issue credit.
Don’t Hand Over Cards or Documents as Collateral:
It is illegal for any lender or credit provider to take your SASSA card, bank card or ID as security for a loan.
Shred or Destroy Old Financial Documents:
Bank statements, till slips, and pre-approved credit offers can be used to impersonate you. Always be sure to destroy these when you no longer need them.
Be Wary About Co-Signing Loans as Surety:
If the main borrower fails to pay, you will become fully responsible for the outstanding debt. This could even involve the credit provider taking legal action against you.
Avoid Using One Loan to Pay Off Another:
Doing this will increase your long-term debt and your monthly costs. You should urgently seek advice or debt counselling if you are caught in this trap.