In the first quarter of 2020, more than 24,000 decisions of the Financial Ombudsman Service were taken
In the first quarter of 2020, based on the results of reviewing the requests from consumers of financial services, 24,128 decisions of the Financial Ombudsman Service were taken, which amounted to 78% of the number of decisions taken for the entire period of activity in 2019 (30,909), said Financial Ombudsman Yuri Voronin.
“Such a high rate of decisions in January-March is due to the fact that, in terms of complaints received at the end of last year, the necessary procedural actions were completed and decisions on them fell on the first quarter of 2020,” says Voronin. The total number of decisions taken by the Financial Ombudsman Service from the beginning of its activity amounted to 55,037, in 50.23% of cases (27,646) the requirements of consumers of financial services were satisfied.
In the first quarter of 2020, the Ombudsman for Financial Services’ Consumers Support Service (OFSC) received 49,020 complaints, including 17,520 complaints in March.
The distribution of the subjects of complaints in January-March 2020 remained unchanged. The leading position is still held by insurance disputes (99%, or 48,519), among which disputes on compulsory motor liability insurance contracts are most numerous (87.4%, or 42,866).
“The topics of the most common compulsory motor liability insurance contracts disputes are also not changing. They relate to disagreement with the amount of insurance compensation, refusal to pay insurance and violation of the insurance payment term,” adds the Financial Ombudsman.
Disputes on life insurance contracts (3.9%, or 1,909) were the second most numerous of complaints to the Financial Ombudsman, which drove to third place complaints on comprehensive insurance contracts (3.3%, 1,619). “The redistribution of the topic of complaints in the first three leaders was due to the fact that from November 28, 2019, the Financial Ombudsman Service began to consider disputes for all types of insurance. The key disagreement of life insurers and their clients is the issue of returning the insurance premium upon termination of the insurance contract,” says Voronin.
The five most common complaints also included disputes on accident and illness insurance (2%, 1001), as well as property insurance (1.2%, or 574).
“Since the beginning of 2020, the Financial Ombudsman Service has also begun to consider consumer disputes with micro-financing institutions. In the first quarter, clients of micro-financing organizations sent 158 requests to the Financial Ombudsman Service, which is 0.3% of the total. Disputes with micro-financing institutions involve non-refund to consumers of fees for additional services, disagreement of customers with the calculation of interest, and forfeit,” Voronin explains.
In general, for the first quarter of 2020, consumers of financial services sent complaints to 108 insurers and 46 micro-financing institutions. The average amount of claims of applicants in the first quarter of 2020 amounted to 205,579 rubles, including complaints for insurance disputes of 206,134 rubles, and disputes with micro-financing institutions of 20,380 rubles. In January-March, the leading positions in the number of complaints received were occupied by the Volga Federal District (10,955 complaints, 22.3% of the total number of complaints), the Southern Federal District (10,389 complaints, 21.2% of the total number of complaints) and the Central Federal District (9,353 complaints, 19.1% of the total number of complaints).
At the same time, the largest number of complaints was received from applicants living in the Krasnodar Territory (10.7%, or 5,265), the Republic of Bashkortostan (6.1%, or 3,004), the Rostov Region (3.8%, or 1,852), Moscow (3.8%, or 1,848) and the Nizhny Novgorod region (3.7%, or 1,837). The Moscow Region was also included in the top ten regions (3.4%, or 1,647), as well as the Volgograd region (3.3%, or 1,623), the Republic of Tatarstan (3.1%, or 1,509), the Republic of Dagestan (2.8%, or 1,380), the Voronezh region (2.3%, or 1,143) )