Financial Consumer Complaints and Disputes

Question 1

What are the essential steps in a complaint?

Answer 1

1. Lodge complaint in writing
2. State essential information
3. Sort details in a sensible order
4. Keep original documents

Question 2

What happens in a “Complaint Unit of Financial Institutions”?

Answer 2

1. FSP must be accessible by customers to address their complaints
2. A written acknowledgement must be provided by FSP within two working days.
3. The final decision or request for more info must be done within two weeks of receiving the complaint.
4. If failed to respond to the FSP, another two weeks duration is given.
5. If there is no further response, the complaint will be treated as “No Further Action”.
6. All cases, FSP will advise the complainant to submit either to Financial Mediation Bureau (FMB) or BNM if not satisfied with the solution by attaching a copy of the decision letter.

Question 3

Who is FMB, and what do they do?

Answer 3

Financial Mediation Bureau

an independent body set up to help settle disputes between financial consumers and financial service providers who are its members.

They provide a platform for an objective and timely resolution of disputes, claims, and complaints arising from services related to banking, insurance, and takaful.

Question 4

What do FMB members consist of?

Answer 4

• Licensed banking institutions
• Licensed Insurance companies and takaful operators
• List of Issuers of Credit Cards, Charge Cards, E-money, and Remittance Service Providers

Question 5

How long are they required to submit their complaint and what are their financial limits?

Answer 5

WITHIN SIX MONTHS

• RM 200k for motor and fire policies or takaful plans
• RM 100k for other policies or takaful plans
• RM 5k for third party property damage

Question 6

What are cases not handled by FMB?

Answer 6

• Claims exceeding the limit stipulated
• Complaints involving the pricing of policies and underwriting issues
• Fraud cases
• Cases that are passed to the court

Question 7

What does “Adjudication” mean?

Answer 7

The legal process by which an arbiter or judge reviews evidence and arguments, including legal reasoning by opposing parties or litigants to make a decision that determines rights and obligations between parties involved.