Car loan issues are on top of public appeals

The Service for Protection of Financial Services Consumers and Minority Shareholders has identified the issues of concern most often raised by consumers in their appeals addressed to various branches of the mega-regulator.

According to the statistics, the most topical issue remains unchanged, i.e. compulsory motor third-party liability insurance (OSAGO). However, compared with 2015 Q2, there has been observed a noticeable drop in the number of complaints about the ‘tie in’ sales of additional insurance services (life or health insurance, etc.) when buying OSAGO coverage, and also about the shortage of OSAGO policy blank forms experienced by insurance companies. At the same time, the Bank of Russia registered a surge in complaints about the wrong value of no-claim bonus indicator (BMS) used by insurance companies to calculate OSAGO insurance bonuses (a twofold increase compared with 2015 Q2). In September, the number complaints grew by 30% compared with August.

Many customers are also displeased with CASCO insurance. The main reasons underlying insurance services consumers’ complaints about CASCO were violations of the terms and procedure of insurance benefit payment, and also refusals to pay insurance benefits.

Other public complains and appeals include those about microfinance organisations, whose activity is regulated by the Bank of Russia.