Old Mutual, a leading insurance provider, is grappling with a public relations crisis and widespread skepticism following accusations from Sebabatso Molefi that the company defied a court order to pay her mother’s pension. Despite issuing an apology on Tuesday, Old Mutual’s explanation efforts have been met with public outrage.
The social media post by Molefi triggered a flood of similar experiences shared by others who expressed dissatisfaction with Old Mutual’s service. In response, the company held a meeting with Molefi and her mother’s lawyers to discuss options for a full and final settlement.
Although Molefi described the meeting as positive and mentioned Old Mutual presenting two settlement options, public skepticism persisted. Old Mutual released a statement apologizing for the handling of the issue and acknowledged the concerns voiced by numerous customers.
The company cited the complexities of the case and the duty to protect personal information for its reluctance to engage fully. However, customers expressed a loss of trust and dissatisfaction, with some threatening to leave Old Mutual due to fear of becoming “the next victims.”
Criticism escalated when users brought up another incident involving a man seeking a payout after his son’s death, where the Old Mutual branch called the police due to the customer’s frustration. The company defended its actions, stating they implemented security measures for the safety of branch employees and customers.
Reputation management specialist Dominik Heil highlighted the predicament Old Mutual faces, emphasizing that customer complaints about a core aspect of its business can significantly impact its reputation in the financial services sector. The incident raises questions about whether similar issues will arise, potentially eroding public trust in the company’s services.
