CBIRC Promulgated the Administrative Measures for the Handling of Consumer Complaints in the Banking and Insurance Sectors

On January 14, 2020, CBIRC promulgated the Administrative Measures for the Handling of Consumer Complaints in the Banking and Insurance Sectors, effective on March 1, 2020 and applicable to all banking or insurance institutions, including banking financial institutions, insurance institutions, insurance intermediaries and other entities regulated by CBIRC.

On January 14, 2020, CBIRC promulgated the Administrative Measures for the Handling of Consumer Complaints in the Banking and Insurance Sectors, effective on March 1, 2020 and applicable to all banking or insurance institutions, including banking financial institutions, insurance institutions, insurance intermediaries and other entities regulated by CBIRC.

Improve complaint handling rules

Banking and insurance institutions should establish and improve their rules and systems concerning consumer complaints statistics and analysis, source tracing and rectification, information disclosure, responsibility and accountability, complaints handling documentation, archive management and complaint handling evaluation. Banking and insurance institutions should establish contingency plans for major consumer complaints, including (i) consumer complaints arising out of major natural disasters, safety accidents, public health incidents, etc.; (ii) complaints raised by groups of 20 or more consumers via face-to-face interview; or (iii) other material consumer complaints recognized by CBIRC or its local bureaus.

Enhance human and other resource support

Banking and insurance institutions should designate a senior officer or person in charge of the institution to lead complaint handling, and establish or designate internal departments and positions for complaint handling, which should be reasonably staffed.

Enhance complaint handling for third-party business cooperation

If a consumer complaint arises out of sales of products or provision of services in cooperation with third parties, the banking or insurance institution should require the third party to cooperate with complaint handling, verify facts, provide information promptly, and facilitate complaint resolution. The third party’s cooperation with complaint handling should be factored into the evaluation mechanism for access and exit of third party cooperation institutions.

Reporting

Banking and insurance institutions should report their consumer complaint handling work to CBIRC with respect to the relevant policies, responsible persons, changes thereto, and complaint related data, status and results of complaint handling, and should be accountable for the authenticity, completeness and accuracy of the reported data, documents and materials.

Publicly disclose complaint channels

Banking and insurance institutions should publicly and conspicuously disclose their telephone numbers, contact addresses and other complaint channel information and their complaint handling procedures on their official websites, mobile applications, business premises and, if online complaint channels are available, their email addresses and webpages, etc. They should also provide their telephone numbers and other complaint channel information in their product or service contracts.

Complaint handling procedures and timeframes

A banking or insurance institution should make a decision and notify the complainant within 15 days if the circumstances are clear and simple, or within an additional 15 days if the circumstances are complicated, or, if the circumstances are very complicated or there are other special reasons, within yet another 30 days if so approved by a senior officer of the upper-level institution or headquarters of the institution. A complainant can request the upper-level institution to review the decision within 30 days, and the upper-level institution should make a decision and notify the complainant within 30 days.

Penalties

If a banking or insurance institution fails to comply with the measures, CBIRC can issue a rectification order, conduct regulatory talks, impose fines, impose restrictions on its business scope, or order it to cease to accept new business, among others.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/10/cbirc-promulgated-the-administrative-measures-for-the-handling-of-consumer-complaints-in-the-banking-and-insurance-sectors/.

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