51% of FIDReC disputes filed against banks and finance companies
Remaining complaints were against life insurers and general insurers
Singapore
MORE than half the complaints filed with the Financial Industry Disputes Resolution Centre (FIDReC) for the financial year ended June 30 were against banks and finance companies.
During the period, FIDReC received 1,037 complaints, down from 1,266 the year before. It was the second straight year that the number of total complaints had crossed the 1,000 mark.
Of the complaints received, 51 per cent were filed against banks and companies, 26 per cent against life insurers, and 16 per cent against general insurers, said FIDReC in its annual report.
More than 55 per cent of total complaints came from consumers aged 51 and above. The median claim amount was S$5,000, and the average was S$24,000; the largest claim amount stood at S$679,000.
Among the complaints filed against banks and finance companies, 43 per cent involved disputes on inappropriate advice, misrepresentation or disclosure issues; another 30 per cent involved disputes relating to unauthorised credit card transactions, said FIDReC.
Among the complaints filed against life insurers, 29 per cent were disputes about inappropriate advice, misrepresentation or disclosure; 27 per cent were disputes on liability.
The majority of the complaints (78 per cent) against general insurers were related to disputes on liability.
The centre resolved 1,218 complaints during the financial year, including some carried over from the previous year. More than nine in 10 (94 per cent) were concluded within six months. Around 85 per cent of the completed cases were ironed out through mediation and the rest, through adjudication.
Of the cases that concluded at mediation, 39 per cent involved a settlement. The remaining 61 per cent did not proceed to adjudication, although there was no settlement.
As at June 30, there were 445 claims outstanding and brought forward to the current financial period that started on July 1.
FIDReC chief executive Eunice Chua said: "Over the past financial year, FIDReC has worked on improving its services and capabilities while partnering with its stakeholders to increase public awareness of FIDReC's services."
As an example, the centre has displayed information about its services at the premises of banks and on ATM screens.
FIDReC has plans to improve its infrastructure and quality of staff, as well as reach out to stakeholders through articles and information talks on its services and processes, said Ms Chua.
