Complaints Handling within Financial Service Providers : Principles, Practices, and Regulatory Approaches
Core to an effective financial consumer protection framework is an accessible and efficient recourse mechanism that allows consumers both to know and to assert their rights to have their complaints addressed and resolved in a transparent and just w...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/773561567617284450/Complaints-Handling-within-Financial-Service-Providers-Principles-Practices-and-Regulatory-Approaches-Technical-Note http://hdl.handle.net/10986/32360 |
| Summary: | Core to an effective financial consumer
protection framework is an accessible and efficient recourse
mechanism that allows consumers both to know and to assert
their rights to have their complaints addressed and resolved
in a transparent and just way within a reasonable timeframe.
Complaints handling mechanisms are especially important for
low-income and vulnerable financial consumers, to whom
timely and effective recourse processes can have a decisive
influence over their trust in their financial service
provider (FSP) and in the financial sector in general.
Increased trust contributes to consumers' uptake and
sustained usage of financial services and, consequently,
their economic livelihoods. Financial consumer complaints
handling mechanisms comprise two stages: complaints that are
handled by FSPs, generally referred to as internal dispute
resolution (IDR); and complaints that, if not satisfactorily
resolved, are handled by an alternative, out-of-court
process, generally referred to as external dispute
resolution (EDR). There are several international sources of
principles applicable to complaints handling and resolution
processes and procedures to be established by FSPs. Drawing
from the World Bank's Good Practices for Financial
Consumer Protection, the work of international bodies, such
as the Group of Twenty (G20)/Organisation for Economic
Co-operation and Development (OECD) Task Force on Financial
Consumer Protection, as well as selected country experiences
this Technical Note highlights considerations that aim to
provide a methodological guidance for regulators and FSPs
when developing and implementing IDR frameworks to ensure
they are consistent with international good practices. This
Technical Note synthesizes concepts, principles, and
practices for IDR mechanisms for financial consumers and
shares examples of legal and regulatory requirements for
FSPs to resolve complaints and to ensure that complaints-
related data is collected, analyzed, and shared as
appropriate to support improvements in FSP performance,
industry market conduct, and market conduct regulation. |
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