Complaints Management Update

December Quarter 2015

A. Background

In January 2010, the Reserve Bank of Fiji (RBF) issued its Supervision Policy on Complaints Management to the Licensed Financial Institutions (LFI’s)1.

The Policy requires LFI’s to implement a Complaints Management Framework that will effectively and efficiently resolve complaints by customers of LFI’s. The Policy also enables customers who are dissatisfied with the outcome of their complaints with the LFI’s to refer their complaints to the RBF for mediation and resolution.

This report provides an update on the complaints referred to the RBF in the fourth quarter of 2015. The complaints data provided in this report excludes the complaints received and resolved by the LFIs at their level.

B. Highlights

In the fourth quarter of 2015, 23 complaints were referred to the RBF for mediation and resolution.

This was an increase from 16 complaints received in the third quarter of 2015. Similarly, an increase was noted in the

1 Commercial Banks, Credit Institutions, Capital Market Participants, Insurance Companies orbrokers, FNPF and Foreign Exchange Dealers

complaints received when compared to the same period last year.

The complaints received were related to the insurance, banking and credit institutions (Graph 1).

C. Complaints Analysis

In the review quarter, eight complaints remained unresolved. All of these are currently being assessed by the financial institutions (Table 1).

Complaints under investigation and resolved

For the December 2015 quarter, 65 percent of the complaints were resolved.

Resolution to these complaints included reversal of fees and charges, bringing the complainant and LFI together to better understand their rights and duties, processing of Telegraphic transaction and rebate of interest charged to loan account.

D. Types of Complaints Received

The complaints received by the RBF against the insurance industry were on motor vehicle insurance and claims handling process on declinature of claims (Graph 2).

The nature of complaints received by the RBF on the banking and credit institutions were mainly on fees and charges, fraud, loans and mortgages (Graph 3).

E. Consultative Meetings

During the quarter, the RBF held eight meetings with complainants to resolve their complaints.

In addition, the RBF held two meetings with financial institutions. These meetings involved mediation and clarification of issues raised by complainants.

F. Other Major Activities

In the review quarter, one staff attended the Consumer Protection and Market Conduct Training from 18-20 November 2015 that was organised by Alliance for Financial Inclusion in Tonga.

The RBF also attended the Open Forum on “Consumer’s Right to Redress in Financial Services” held on 7 December 2015 which was organised by Consumer Council of Fiji. The Deputy Governor was a panelist at the Forum.

Reserve Bank of Fiji
January 2016