Financial institutions now required to respond to customer complaints
The law adopted by the State Duma introduces a standardised procedure for handling customer inquiries regarding financial services. This aims to discourage unfair practices and violations of customer rights by market participants.
Banks and other financial institutions will have to provide substantive responses to complaints within 15 working days. In cases requiring additional information for a decision, this period may be extended by 10 working days.
The law also mandates that complaints be accepted at offices, as well as by regular mail and email. Additional methods of receipt are permitted and relevant information about them should be published on the company’s website and in its offices.
Furthermore, the Bank of Russia is streamlining its procedure for handling complaints from individuals. The regulator will forward them to the financial institution responsible for addressing such issues and ensure necessary measures are taken. The law stipulates the same timeframe for a market participant to respond —15 working days, with a possibility of another
In cases where a financial institution fails to provide a timely response, the Bank of Russia will have the authority to apply supervisory measures and independently review the inquiry. If an applicant remains dissatisfied with the way the financial institution has handled their problem, they can send a second inquiry to the Bank of Russia for further investigation.
‘It is important to note that with the implementation of the new law, the resolution time for problems will generally be the shortest when directly contacting the bank, microfinance organisation, insurer, etc. Even in the absence of this law, conscientious market participants strive to promptly resolve the difficulties their customers encounter in the financial market. However, if a person disagrees with the result of consideration of the complaint by a financial institution, we will review such inquiries and take appropriate measures to restore any violated rights,’ said Mikhail Mamuta, Head of the Bank of Russia’s Service for Customer Protection.
The law is anticipated to take effect on 1 July 2024.