Measures in the Area of Financial Service Consumer Protection
To better inform the public on how it protects financial service consumers, the NBS indicates that the list of banks found non-compliant with certain provisions of the law governing financial services, published in accordance with the Law on the Protection of Financial Service Consumers, includes banks identified in the complaint procedure and/or supervision procedure, as acting contrary to certain provisions of the Law on the Protection of Financial Service Consumers and the Law on Payment Services, as well as regulations adopted based on these laws.
In the procedure of responding to consumer complaints the NBS adopted decisions ordering the elimination of a specific irregularity in respect of the consumer who filed the complaint and imposed fines in accordance with the law, ranging from RSD 80,000 to RSD 1,000,000 (for irregularities relating to the implementation of the Law on the Protection of Financial Service Consumers), or from RSD 50,000 to RSD 800,000 (for irregularities relating to the implementation of the Law on Payment Services).
In 2019, 20 decisions were adopted in the complaint procedure, 18 of which entailing a fine, too. One decision also identified unfair contractual provisions.
Fines against two banks were imposed in line with the Law on the Protection of Financial Service Consumers as they acted contrary to the Decision on Detailed Conditions of Financial Services Advertising.
We point out that we cannot inform the public about the results of our work in this area in more detail due to the confidentiality requirement established by law even though a number of consumers who did not even file complaints have benefited (materially) from NBS activities in this area.
We are also using this opportunity to clarify that the number of founded complaints was 280 compared to 1,577 completed procedures – 9.6% with insurance undertakings and 26.6% with banks (bank services are regulated in more detail and the nature of the dispute is different).
Of the total number of completed mediation procedures (60), 19 ended in settlement in case of insurance undertakings and four in case of banks. The average value of the dispute settlement agreement is RSD 337,812.