Complaint Management Update
December Quarter 2017
A. Background
The Reserve Bank receives quarterly returns from the Licensed Financial Institutions (LFIs).
This report provides an update on the complaints received by the LFIs and those that are referred to the Reserve Bank for resolution.
B. Highlights
In the fourth quarter of 2017, a total of 1170 complaints were received directly by the LFIs when compared to 1007 complaints in the September 2017 quarter. This was an increase of 16.2 percent over the quarter and 3.9 percent when compared year on year.
The type of complaints received by LFIs related to electronic banking, system, customer service, process, fees & charges, motor vehicle claims, terms & condition of policy and lack of proper advice for the Fiji National Provident Fund.
The majority of the complaints were related to banks & credit institutions, and insurance companies.
1.0 Overall Number of Complaints
The total number of customer complaints increased by 16.2 percent when compared to the third quarter of 2017 (Table 1).
For the quarter, 31 complaints were referred to the RBF for resolution which represents only 2.7 percent of the total number of complaints received from the industry.
2.0 The Main Issues Involved in the Complaints
Banking Industry
The nature of complaints received by the RBF against the commercial banks and credit institutions were mainly for electronic banking, system, customer service, process, and fees & charges.
Three banks registered an increase in the number of complaints received over the quarter. These complaints were mainly related to electronic banking and banks systematic issue whereby a major bank recorded the highest, due to upgrades in their system and changes in processes to combat fraudulent activities.
Complaints about electronic banking had the highest increase by 168.3 percent over the quarter and a significant 216.5 percent on the same period a year ago. These were mainly non-dispensation of cash from ATMs, increasing credit card limits; password issues for internet banking facilities and not being able to use bank cards on EFTPOS terminals.
The increase in the number of complaints for the banking industry were due to on-going system upgrades undertaken by one of the major banks. This was an increase of 18.9 percent from the September quarter.
Other banking related services complaints were:
- Delays in service;
- Unsatisfactory advice given;
- Long processing time;
- Misunderstanding of applicable fees and charges;
- Remittances not transacted on time; and
- Non-disclosure of full information by banks.
Insurance Industry
The total number of new complaints received for the industry decreased over the quarter by 15.8 percent. However, on an annual basis, total complaints rose by 52 percent.
Motor vehicle insurance claims recorded the highest number is attributed to the increased number of vehicles being sold and accidents taking place on our roads.
The majority of the complaints were about motor vehicle claims, customer service, terms & condition of policy, medical and other insurance related complaints.
3.0 Complaints Lodged With the RBF
In the December quarter of 2017, 31 complaints were referred to the RBF of which 20 complaints were resolved while 11 are still being processed. All complaints are currently with the LFI’s for their investigation.
Resolution of the above complaints included mediation with the parties to better understand loan repayment arrangements, applicable fees & charges and its reversal procedures, terms & policy conditions, and claims procedures.
During the quarter, the RBF held 18 consultative meetings with complainants or LFI’s to clarify their complaints.
In addition, the RBF held four mediation meetings with both complainants and financial institutions to try and resolve their complaints.
For more information on this Update, please contact:
Financial System Development Group
Reserve Bank of Fiji