Page 84 - ITU-T Focus Group Digital Financial Services – Recommendations

ITU-T Focus Group Digital Financial Services
Recommendations

Title of recommendation Informing consumers of their right to complain and how to do so
Working Group Consumer Experience and Protection

Theme Recourse
Audience for recommendation Regulators

Regulators should require that DFS providers inform consumers through multiple channels (e.g., print, SMS,
etc.) of their right to complain and the process to complain, including all external complaints, filing options, and
procedures in the event that the consumer is not satisfied with the outcome of the recourse process with the
provider (e.g. regulators, ombudsman, industry mediator, consumer advocacy body, or the judiciary).

Regulators should require providers to use multiple channels to provide information on recourse, such as
in written contracts, pre-contractual disclosures, electronic and print media, statements and receipts, and
posted notices at branches and agents. GSMA’s Code of Conduct for Mobile Money Providers states that
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mobile money providers should, “inform customers of the existance of complaint policies and procedures.”
Some countries, such as Armenia , require staff to provide this information verbally, recognizing that illiterate
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customers will be unable to read written materials. Depending on the nature of the product, SMS may be an
effective way to provide this notification.

Customers who interact primarily or exclusively with an agent may not know how to contact the DFS provider
directly (e.g., at a call center or branch office) or feel confident doing so and thus first go to agents for
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assistance. According to CGAP research, agents may not always be adequately trained or incentivized to serve
in the dispute resolution role. Further, where the dispute or issue regards the agent itself, this can create serious
problems. For this reason, signage, brochures, and other materials that provide clear instructions on contacting
the DFS provider with a complaint or concern should be prominently displayed at the agent’s location.

In situations where internal recourse fails, providers should specify how disputes can be resolved, as stated
in Principle 7 of the GSMA’s Code of Conduct . For example, if the result of the investigation regarding the
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complaint is not in the customer’s favor, the customer should be advised of available third-party alternative
dispute resolution (ADR) options. Such alternatives may include an external ombudsman, mediator, consumer
advocacy body, or judiciary. Regulators should do all in their authority to require providers to conduct internal
recourse well, even though dealing with complaints can present a significant burden, particularly to low-
capacity regulators.

In countries where an appeal to the court system is not financially or logistically feasible for low-income
or illiterate customers, alternatives should be provided. The AFI recommends that a consumer generally
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should not be expected to visit multiple third parties to seek redress when the DFS provider did not resolve a
complaint to the customer’s satisfaction; instead sufficient, appropriate options should be available so that a
consumer only needs to visit one. Indonesia, for example, provides a single point of contact for customer care
and referral to the correct governmental ombudsman. South Africa is also working to have a single contact
for its multiple ombudsman schemes.

Banco Central do Brasil requires financial institutions to disclose the existence of internal complaints
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mechanisms, and how to access them, at the distribution channels. Access to internal complaints must be
freely available through effective channels, including: a hotline that should be disclosed at branches; agents;

42 Central Bank of the Republic of Armenia, Board Resolution 229-N (2009) https:// www. cba. am/ EN/ laregulations/ Regulation%208
_05_ eng. pdf
43 Banco Central Do Brasil Resolucao No 4.433, DE 23 DE Julho De 2015 http:// www. bcb. gov. br/ pre/ normativos/ busca/
downloadNormativo. asp? arquivo=/ Lists/ Normativos/ Attachments/ 48509/ Res_ 4433_ v1_ O. pdf

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