Complaints against banks and insurers climb: FIDReC

Singapore

THE number of complaints filed with Singapore-based Financial Industry Disputes Resolutions Centre (FIDReC) rose to 1,266 for the financial year ended June 30, 2018, up from 953 the year before.

Of these complaints, 33 per cent were filed against banks and finance companies, 47 per cent against life insurers and 14 per cent against general insurers, FIDReC stated in its annual report.

Only 34 of the filed cases over the 12 months to end of June involved amounts of between S$50,000 and S$100,000. This, coming after the jurisdiction of FIDReC was increased to S$100,000 from S$50,000 in January 2017, is a smaller number than expected, chairman of FIDReC, Koh Juat Jong, noted.

Of the complaints against the banks and finance companies, 45 per cent involved disputes on inappropriate advice, misrepresentation or disclosure issues, and 23 per cent involved credit cards (more details in the table).

For those filed against life insurers, 53 per cent pertained to contractual matters while 15 per cent were related to inappropriate advice or misrepresentation or disclosures.

A large majority, or 82 per cent of the complaints, against general insurers were filed due to disputes on liability.

The centre resolved 945 complaints it received; some 96 per cent of these were resolved within six months and 99 per cent were resolved within nine months.

A substantial number of complaints were filed within the last few months to its financial close and as a result, the centre had 637 pending cases as at June 30.

Of the cases resolved, 72 per cent were resolved through mediation with the balance through adjudication. Of the cases adjudicated, 94 per cent received no award from the adjudicators.

FIDReC has resolved more than 11,000 financial disputes in all as at June 30.