‘Do not add to citizens' social trauma’

FINANCIAL Services Ombudsman Dominic Stoddard reported complaints to the Office of the Financial Services Ombudsman (OFSO) increased in 2018 but the resolution rate has decreased.

He was speaking on Friday at the OFSO’s annual breakfast meeting held at the Central Bank auditorium, Port of Spain."It gives me no pleasure to deliver a bad report, but by most indicators circumstances have worsened over the past year. Customers are becoming more aware of their rights but are far less vigilant about their responsibilities. And financial institutions spare no cost in their search for new business, but are frugal on improving the customer experience."

Stoddard reported in 2018 there were 340 new complaints lodged at the OFSO compared to 282 in 2017. He said insurance complaints continued to dominate the scheme with 97 per cent of the complaints being about motor vehicle accidents.

He said there was a 50 per cent increase in banking complaints in 2018 compared to 2017, with the majority regarding accounts and transactions, card services and credit. He reported, enquiries in 2018 were 790 representing an increase of four per cent over 2017 when the figure was 770.

Stoddard said the volume and complexity of complaints and enquiries had increased, but the resolution rate had not kept pace, dropping seven per cent in 2018 to 61 per cent. He said the decrease was indicative of the increasing difficulty of cultivating an atmosphere in which parties fully appreciate the benefits of resolving complaints by mediation. He also said the average number of days to resolve complaints increase from 97 days in 2017 to 106 days in 2018.

"Having complaints take an inordinately long period of time to be resolved is wholly unacceptable and the complainants are increasingly disadvantaged with the passage of time."

He said the penalty fees for institutions that fail to meet settlement dates continued to increase and, though small, resumed its upward trajectory. He added one of the few positive outcomes was the increase in average settlement amounts by $1,600 to about $9,500 in 2018.

"My intention here is not to paint everyone with the same broad brush but the tone is set from the top so that employees, including managers, manifest the culture of their organisations."

He continued: "We have many just, fair and responsible financial institutions operating in TT. They do business on the basis that their long-term reputation would see them through both good times and bad. But there are notable exceptions and these are the ones that undermine the very reputation that others have fought so long and hard to attain."

Stoddard said his simple request is for institutions, including the OFSO, to redouble efforts to show customers that they care.

"Let us not forget to call them back when we say we will, and in a timely manner. Let us follow up and follow through and keep customers informed at every stage of development. Gone are the days when we can simply tell customers 'that's the policy.'"

He urged institutions to go the extra mile for customers.

"Do not add to the social trauma already being experienced by many of our citizens. Let us care once more for customers and remain unwavering in our pursuit of excellence."

Bankers Association of Trinidad and Tobago (BATT) executive director Kelly Bute-Seaton said BATT has heard the findings of the report and has taken them on wholeheartedly.

"As colleagues in the financial services industry, we all know that the results do not signal a rap on our knuckles. On the contrary they are a salutary reminder that there are points of friction for customers to which we must give priority attention. They also mobilise us as financial service providers into taking action to eliminate those points of friction to enhance customers' financial services experience."