The Financial Services Authority has issued Circular Letter No. 2/SEOJK.07/2014 of 2014 on Service and Resolution of Consumer Complaints on Provider of Financial Service (“Circular Letter”) as an implementing regulation of Financial Services Regulation No. 1/POJK.07/2013 of 2013 on Consumer Protection in the Financial Services Sector (“Regulation”). The Circular Letter will be in force on 6 August 2014.
Pursuant to Article 32 (1) of the Regulation, Financial Service Provider must has and perform a mechanism of service and resolution of consumer complaints. Categorized as a Financial Service Provider are Commercial Bank, Rural Bank, Securities Company, Investment Advisor, Custodial Bank, Pension Fund, Insurance Company, Reinsurance Company, Financing Institution, Pawn Shop, and Underwriting Company, which conduct its business conventionally or in accordance with Sharia Principles (Section I.2, Circular Letter).
A. Consumer Complaints Service and Resolution Mechanism
Services and resolution of consumer complaint is free and Financial Service Provider may not collect any fee. Practice of Consumer complaints acceptance may be conducted by many means such as face to face meeting, email and mail, however not including complaint that is conducted via mass media coverage (Section II. 7 (b), 9, Circular Letter).After receiving a Consumer complaint, Financial Service Provider must immediately follows up and resolves it within 20 days since the complaint was received. This 20 days period may be extended for a further 20 days in the following events (Section II. 3, 4, 5, Circular Letter):
In the process, Financial Service Provider must uphold the confidentiality of information regarding Consumer who complains, against anyone except (Section II. 7 (g), Circular Letter):
Financial Service Provider and Consumer can monitor the development of status of complaint handling submitted by Consumer to Financial Services Authority through Financial Service Integrated Consumer Service (Section II. 12, Circular Letter).Complaints Resolution in a Form of Apology Statement or Compensation Offer Financial Service Provider may resolve complaints by declaring Apology Statement or offering compensation to the Consumer. Considering “Apology Statement” is an act of both parties between the Financial Service Provider and Consumer, procedures on delivering “Apology Statement” are made based on consensus (Section III. 1, Circular Letter).
Losses caused by financial aspects may be given compensation if those losses meet the requirements as follows (Section III. 2, Circular Letter):
B. Mechanism of compensation submission is as follows (Section III. 3, Circular Letter):
Resolution through Alternative Dispute Resolution Institution
If the complaint cannot be amicably resolved in the Consumer complain service and resolution process, Consumer and Financial Service Provider may resolve their dispute inside or outside a court. Dispute resolution outside the court is conducted through an Alternative Dispute Resolution Institution (Section IV. 2, 3, Circular Letter). More on this please see “Alternative Dispute Resolution in the Financial Services Sector.”
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