Consumer complaints to BSP rise in 2023

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has processed more complaints from financial consumers in 2023 compared to a year ago, reflecting the central bank’s commitment to prioritize the interests and welfare of consumers in its policymaking and regulatory efforts.

Data from the central bank showed that 43,115 complaints were filed and processed last year, 95 percent higher than the 22,142 recorded in 2022 through various channels of the BSP’s consumer assistance mechanism (CAM).

Around 87.4 percent of the complaints were processed through the automated chatbot BSP Online Buddy (BOB).

BOB, an automated, AI-powered channel that allows financial consumers to escalate complaints against BSP-supervised financial institutions (BSFIs), could converse with complainants in English, Filipino and Taglish.

It is available 24/7 on the central bank’s website, responds in real time, and immediately refers the complaints it receives to concerned BSFIs, consistent with the BSP CAM parameters.

By the end of 2023, around 322 cases were escalated from CAM to mediation, the BSP said.

Of these cases, 69.4 percent were successfully mediated while 30.6 percent were considered failed. Some cases were terminated at the request of the complainant or due to non-response. Five mediation cases are still ongoing.

“The success of mediation proceedings depends on the willingness of involved parties to settle into an amicable agreement,” the BSP said.

Meanwhile, 11 cases were filed for adjudication with the BSP last year. One case is in process, four were dismissed without prejudice, and six were concluded with a decision.

“The BSP continues to protect and advocate for the welfare of financial consumers,” it said.

Under Republic Act 11765 or the Financial Products and Services Consumer Protection Act (FCPA), the BSP has the expanded legal authority to perform market conduct supervision and ensure financial consumer protection.

As mandated under the FCPA, BSFIs should establish its own financial consumer protection assistance mechanism for addressing consumer complaints and inquiries. This mechanism serves as the first level of recourse for aggrieved financial consumers.

Concerns that are not resolved at the first level warrant escalation to the BSP. These can be filed to the CAM for assistance facilitation. The CAM is the second level of recourse which serves as a venue for financial consumers and BSIs to communicate and resolve their issues.

Unresolved concerns can be escalated to mediation and adjudication. Mediation is an intervention conducted by a duly authorized central bank mediation officer to assist involved parties in reaching a mutually acceptable settlement.

Meanwhile, adjudication is a quasi-judicial procedure for financial consumer complaints arising from, or in connection with, financial transactions that are purely civil in nature and involve reimbursement claims of up to P10 million.