Having started the investigation of disputes of consumers and financial market participants from the beginning of the year, the Bank of Lithuania received in the first quarter of 2012...
Having started the investigation of disputes of consumers and financial market participants from the beginning of the year, the Bank of Lithuania received in the first quarter of 2012 more than a hundred and a half applications from the population holding the opinion that financial institutions violated their rights as consumers. More than a half of applicants had disputes with insurance enterprises, one third of them – with banks.
“It is normal that the number of insurance-related disputes was the largest within the first months of this year, because the system of the investigation of such type of disputes was functioning smoothly already earlier. When the Bank of Lithuania became involved in this area and started investigating consumer complaints not only in the insurance area, but also in banking, payments, quick credits and other areas of financial services, the overall number of disputes is forecasted to increase significantly”, – said Darius Andriukaitis, Head of the Consumer Protection and Education Division of the Supervision Service of the Bank of Lithuania.
In January-March, the Bank of Lithuania was addressed by the population 158 times: 90 times because of disputes with companies providing insurance services, 53 times – because of services provided by banks, 15 applications were related with disputes concerning consumer credits, leasing, financial brokerage services.
The largest number of consumer disputes with insurers were related with motor third-party liability insurance, motor insurance (CASCO), asset insurance. The most frequent case was the event when consumers were not satisfied with the amount of the insurance payment or the insurer’s entire refusal to execute such payments.
The largest amount of disputes with banks was caused by reasons connected with credits, payment cards, bank accounts. The most frequent claims of consumer disputes were related with cash amounts to be paid according to loan contracts with banks and the substantiation of such claims, unilateral termination of credit contracts, conclusion of credit contracts with spouses or cohabitants, offsetting of different sums, writing-off, etc.
In consumer disputes with other financial markets participants, consumers had claims concerning consumer credits, leasing, rendering of investment services.
Within the first quarter the Bank of Lithuania started the investigation of 61 disputes: out of which 15 disputes have been settled in full, in 5 cases the Bank of Lithuania decided to satisfy consumer claims in full or in part, and in 8 cases consumer claims were recognised as unsubstantiated.
The investigation of almost one third (48) of applications received by the Bank of Lithuania was not started, as consumers did not address in writing the financial market participant for the settlement of the dispute before applying to the Bank of Lithuania. According to the established procedure to be followed in such cases, the Bank of Lithuania forwarded the consumer claims together with proposals of a peaceful settlement of the dispute to financial market participants.
“We have observed that the Bank of Lithuania is becoming to consumers, as a weaker party in disputes, a useful arbitrator in settling problems with providers of financial services. The mere forwarding of the person’s claim to the financial institution and encouraging to settle a dispute in a peaceful way determined that the majority of financial service providers presented comprehensive explanations or agreed in a peaceful way with an unsatisfied customer, thus avoiding the investigation of the dispute in the Bank of Lithuania”, noted Darius Andriukaitis.
He encouraged consumers to further protect actively their rights in case of substantiated suspicions that they are breached. The Bank of Lithuania in its turn undertakes to investigate disputes of financial institutions and consumers in an unbiased and as quick as possible way.
The Bank of Lithuania draws attention to the fact that for a smooth settlement of disputes in the Bank of Lithuania, it is necessary to follow procedures, because in as much as 49 cases there were no possibilities to start the investigation of disputes due to various procedural obstacles: for example, disputes have already been investigated in court or in some other alternative dispute investigation institution, the dispute arose because of the contract that was not made for the satisfaction of personal or household demands, financial services were not the reason of the dispute.
In the first three months of this year, market participants implemented two Bank of Lithuania recommendation-type decisions, the terms for the execution of other decisions expire in the next quarter. One market participant failed to execute the decision of the Bank of Lithuania.
In all cases, consumers have a right to address courts in the event of disputes with financial market participants. In judicial disputes, the Bank of Lithuania conclusion may serve as a basis for the court to take a certain decision.
More detailed information about the investigation of disputes between consumers and financial institutions in the first quarter of 2012 is available on the Bank of Lithuania website.