Structure and dynamics of complaints to Bank of Russia influenced by pandemic: 2020 results
The number of complaints against banks and securities market entities increased in 2020. However, the regulator’s data show that this number declined in other financial market segments.
In the insurance market, the drop was 22.8% vs 2019 primarily owing to a decreased number of OSAGO-related complaints. Restrictive measures introduced to combat the COVID pandemic led to a drastic decline in travelling, and therefore road traffic accidents, in the second quarter. Overall, the regulator received 32.1 thousand complaints against insurance companies.
The number of complaints in the microfinance market dropped 13.8% vs 2019. Conduct supervision measures (from orders and fines to the exclusion of companies from the register) nearly halved the number of complaints against overdue debt recovery, which is the main reason behind complaints against MFOs.
Collective investment entities in 2020 logged a 32.1% reduction in complaints about their operations; complaints related to corporate relations saw a 25.4% drop. Complaints against NPFs declined as a result of the Bank of Russia’s supervisory activities and changes in early transfer notification rules.
Banks gave rise to 191.4 thousand complaints to the regulator. The growth of over one third vs 2019 was caused by the emergence of new topics such as loan restructuring, rejection and cancellation of loan repayment holidays. In March-December 2020, the Bank of Russia received 31.5 thousand such complaints and appeals. Many of them were, in fact, requests for a clarification of measures to support households and businesses.
The number of complaints in the securities market grew
In addition, in 2020, the regulator received 3 thousand complaints related to misselling, with more than a half of which against banks. Here, the key issue is still investment life insurance where policies are sold without appropriately informing consumers about the specifics and risks of such products.
Overall in 2020, the Bank of Russia received 278 thousand complaints from financial consumers or 12.7% more than last year. However, excluding complaints and appeals related to anti-pandemic measures, the regulator noted a 0.8% decline in their total number year-on-year.