The banking ombudsman`s powers are to be beefed up to help you resolve problems with your bank.
In an announcement after the release of the ombudsman's first report this week, Bob Tucker, chief executive of the Banking Council, said the council had decided that the ombudsman could now make rulings as if he were a magistrate or judge, where there was certainty about the law.
In other cases he would make recommendations.
Members of the banking council would automatically subscribe to his jurisdiction.
It has also been decided that the ombudsman will be renamed the banking adjudicator.
And in order to ensure and protect the independence of the banking adjudicator, the council is to set up a commission whose task will be to appoint future adjudicators.
Previously the adjudicator was appointed by the council itself, which represents the major banks and almost all the smaller banks in South Africa.
The new commission will be chaired by a judge and will include representatives of consumer organisations, the banks, the Financial Services Board and the Public Protector's Office.
The present ombudsman, Charl Cilliers, retires in September this year and a member of his staff will take up the position of acting banking adjudicator from October 1, until the commission has found the right person for the job.
Another measure which will strengthen the banking adjudicator's office is that he or she will be able to make binding rulings of amounts up to R500 000.
So far, the ombudsman has been able to recommend compensation of R100 000 or less - and his recommendations have not been binding on the banks.
From now on the banks will be contractually bound to accept the adjudicator's rulings. If they don't like the rulings they can appeal against the adjudicator's decision before a panel of three judges.
Another big step forward for consumer protection is that the code of conduct for banks, which has been negotiated over two years, has been approved.
It will take effect early next year to give the banks some time to prepare for its implementation.