Number of complaints to Bank of Russia decreased by nearly 10% in 2021
The number of complaints against banks declined most significantly (-27%), largely because customers had fewer questions regarding loan restructuring in connection with the coronavirus. Net of these applications that had been relevant in the first months of the pandemic, the number of complaints in 2021 edged down by 13.9%. However, more people sent complaints against banks related to fraud (+36.8%), mostly telephone and cyber fraud.
As to insurance companies, the increase in customers’ complaints (+20%) was mostly associated with compulsory motor third-party liability insurance (OSAGO). One of the reasons was the low base effect of 2020 when anti-pandemic restrictions caused a reduction in the numbers of sold OSAGO policies and road accidents. Specifically, such topics as an incorrect application of the bonus-malus coefficient, refusals to conclude OSAGO contracts, and unreasonable early termination of OSAGO contracts became more relevant instead. Contrastingly, customers’ complaints about the periods for the payment of insurance compensations became less frequent. This was the result of the work carried out by the Bank of Russia with insurance companies on an individual basis.
The increase in complaints against microfinance organisations (MFOs) was largely provoked by the operation of an informal group violating or infringing upon consumer rights. As was earlier reported, the Bank of Russia excluded six organisations — members of that group from the register, which considerably reduced the number of complaints against MFOs at the end of the year. Furthermore, the adoption of the law limiting creditors’ opportunities to communicate with a debtor’s family members and acquaintances induced a surge in the number of complaints about overdue debt recovery in 2021 Q3.
The measures to prevent hard selling of extra paid services by banks and MFOs that became effective at the end of 2021 should contribute to a decrease in the number of complaints from borrowers.
As regards professional securities market participants, the number of complaints against them sent to the Bank of Russia soared 1.7 times as compared to 2020. This was associated with the substantial inflow of newbie retail investors into the securities market and the receipt of a significant number of complaints against companies with revoked licences.
The number of complaints against collective investment entities declined by 17.2%, predominantly as a result of a decrease in complaints about transfers from one pension fund into another.
As before, complaints about misselling (-1.1%) were mostly caused by incorrect sales of investment and endowment life insurance policies. New requirements that are to come into effect will increase the value of such products for consumers and make them more transparent and understandable for people.