How can financial consumers have no way to file complaints?

Ask AI · How to crack three major problems in financial complaint resolution under new regulations?

When faced with a financial dispute, who should consumers complain to, and how should they file a complaint? Recently, the National Financial Regulatory Administration published for public comment the “Administrative Measures for the Handling of Financial Consumer Complaints by Banking and Insurance Institutions (Revised Draft for Soliciting Opinions)” (hereinafter referred to as the “Measures”), putting forward a number of specific requirements in areas including institutional mechanisms, the handling of consumer complaints, diversified resolution of consumer disputes, and supervision and management.

Whether consumer disputes can be handled effectively is an important criterion for assessing the quality of financial services. Doing and doing better with financial services is not simply about selling products; it is about ensuring that consumers are satisfied with how they use them. Previously, when consumers encountered financial disputes, they often faced three major problems: who to complain to, how to complain, and how to safeguard their rights. Many consumers have encountered situations such as complaint hotlines that are unreachable, or even when a call is answered, the subsequent handling results end up going nowhere. Because the financial industry is highly professional, consumers and financial institutions face a pronounced information asymmetry, making it difficult for consumers to take the initiative in communication. And once the involved institution shifts responsibility and engages in blame-shifting, consumers are even less able to protect their rights effectively. Specifically in each financial consumer dispute, the above problems would further evolve into pains that differ in form. Therefore, to treat the symptoms and remove pain points across each link, it is necessary to ensure that safeguarding the lawful rights and interests of financial consumers is carried out in practice.

To handle disputes effectively, first of all, complaint channels must be kept open; consumers must not be trapped in the predicament of “no way to complain.” To whom do financial consumers complain, and through what channels can they file complaints? According to the Measures, the financial institution is responsible for fulfilling the main duty for handling consumer complaints. Therefore, financial institutions should improve their work systems for handling consumer complaints, clarify requirements such as handling procedures, responsibility allocation, and handling time limits, and especially ensure that consumers can quickly and accurately find the relevant responsible persons. To that end, financial institutions should publicize, in conspicuous locations on their official websites, mobile clients, business premises, or office premises, complaint channel information such as the complaint phone number and mailing address, as well as the process for handling consumer complaints, and establish or designate a complaint reception area.

After complaint channels are kept open, the key is to truly solve the problem—apply differentiated measures and target the right remedy. If the problem is indeed with the financial products and services themselves, financial institutions should, in accordance with relevant laws and regulations and the contract, make fair and just decisions. For complaints for which lower-level institutions have difficulty resolving them, have poor handling outcomes, or have let conflicts drag on without resolution, they should be escalated and handled in a timely manner. If the matter involves cooperation business with third-party institutions, the financial institution must both clearly define responsibilities and obligations and also not evade responsibility.

Treating an existing illness is not enough; prevention before problems occur is also necessary. In fact, consumer complaints are an opportunity for financial institutions to identify shortcomings and improve services. Financial institutions should make full use of complaints to carry out related risk checks, and take measures promptly in response to early signs and problems raised by financial consumers. In addition, banking and insurance institutions should improve their source-tracing and rectification mechanisms. For prominent issues in complaints, they should identify weak links and risk hazards, and improve and refine the setting of operating indicators, product development, marketing management, business processes, customer service, and assessment and incentive mechanisms. At the same time, they should establish systems such as statistical analysis of consumer complaints and dispute resolution, regularly analyze consumer complaint situations, and adhere to the principle of “grasping the front end and preventing problems before they occur.”

Consumers also need to keep their eyes open and never fall into illegal “rights-representation by proxy” traps in their rush. Recently, some organizations and individuals have, through self-media platforms, illegally produced and disseminated so-called short videos about full premium refunds, debt being wiped to zero, “credit record cleansing,” and the like, luring financial consumers to entrust them to “represent them in safeguarding rights,” and then charging high consultation fees and service fees. Such conduct disrupts the order of the financial market and not only fails to protect rights, but also infringes on consumers’ lawful rights and interests. Therefore, financial consumers should express their demands in a legitimate manner and in an objective and rational way, and safeguard their lawful rights and interests in accordance with the law. (Author: Guo Ziyuan Source: Economic Daily)