BSP processed 22,142 consumer complaints in 2022, of which 75% was received by the chatbot BOB, the rest through other Consumer Assistance Mechanism or CAM channels.
Last year, BSP created Consumer Complaints Resolution Office or CCRO based on provisions of the Financial Consumer Protection Act, to adjudicate consumer complaints in connection with financial transactions, products, and services.
Of the 54 mediation cases referred to the BSP in 2022, 45 were terminated, while nine were ongoing. About 36 of the 45 terminated mediations were deemed “successful” by the BSP which simply means “that both parties entered into a settlement agreement and/or agreed to terminate the mediation."
BSP acted on 22,142 consumer complaints
Jul 10, 2023 09:12 AM
At a glance
The Bangko Sentral ng Pilipinas (BSP) has received and processed 22,142 consumer complaints in 2022, based on a report.
The data came from the BSP’s Consumer Assistance Mechanism or CAM program and were escalated by financial consumers through various channels of the CAM.
Meanwhile, 75 percent of these complaints were processed through BSP’s BOB or the consumer chatbot “BSP Online Buddy” which went live in 2020.
BOB and the CAM are part of the central bank’s financial services innovations to use technology for an accessible, continuous, timely and efficient platform for escalating complaints against supervised financial institutions or BSFIs.
The BSP said it has deployed a new Complaints, Inquiries, and Request (CIR) form as part of its CAM last year. The CIR is shorter and easier to use for complainants and also more accurate and has granular information.
In 2022, the BSP created a Consumer Complaints Resolution Office or CCRO after it implemented the Financial Consumer Protection Act (FCPA) which was enacted in May last year.
Basically, as explained by the BSP, the CCRO adjudicates consumer complaints in connection with financial transactions, products, and services.
“Of the 54 mediation cases referred to the BSP in 2022, 45 were terminated, while nine were ongoing,” said the BSP.
About 36 of the 45 terminated mediations were deemed “successful” by the BSP which simply means “that both parties entered into a settlement agreement and/or agreed to terminate the mediation,” said the BSP.
Last year, the BSP’s Complaints Data Management and Analytics were also strengthened. It has completed a comprehensive analysis of the complaints data collected from the chatbot BOB, as well as an analysis of social media data on consumer complaints.
“The results from these two studies are being used to inform BOB system improvements and the planned acquisition of a consumer sentiment analytics tool under the BSP’s ‘Big Data’ project,” said the BSP.
The BSP said it has also recalibrated its complaints database “to generate better analytics and to align with the changes in the regulatory environment”. An example of this is the New Complaints Masterfile categories and standard operating procedures for “reports (that are made) in a timelier and more detailed manner.”
The BSP has issued several guidelines based on provisions of Republic Act No. 11765 or FCPA.
One of these circulars is the “Rules of Procedure for the Consumer Assistance Mechanism, Mediation and Adjudication of Cases in the Bangko Sentral ng Pilipinas” which took effect May 1, 2023.
The FCPA gives BSP the power to resolve disputes involving an amount not more than P10 million.
Based on the circular, complaints will be addressed within 30 days, including the reply and rejoinder once elevated to the BSP.
If it escalates to mediation and adjudication, the mediation proceedings will be conducted virtually or through online video conferencing using the BSP-prescribed platform. Complainants who prefer in-person or face-to-face mediation, can make a request to the mediator.
Mediation, as defined in the circular, is an intervention by which the BSP, through its duly authorized mediation officers, facilitates communication and negotiation between the parties, and assists them in reaching a mutually acceptable settlement. lt is voluntary in nature and a strlctly conffdentlal process.
The mediation period will be for 30 days. However for “meritorious reasons and as agreed upon by the parties, a longer period may be allowed.”
As for the adjudication proceedings, this will only be conducted in-person or face-to-face. But, the BSP will permit virtual or online hearing when appropriate.
The significance of the pro-consumer law, besides BSP improving its complaints handling mechanism, is that its consumer redress includes central bank’s capability to adjudicate or pronounce judgement in connection with “purely civil in nature” financial transactions. With this power, the BSP can order the reimbursement of a sum of money not exceeding P10 million.
Meanwhile, the BSP’s CAM is a second-level recourse for complainants who first reported their issues to the BSFI but was not satisfied in how the BSFI handled their concerns.
The BSP CAM is a condition precedent to both mediation and adjudication.