Almost one third of consumers are unaware of how to complain about a financial service or product, according to a report published today by the Financial Regulator.
The study found only 46 per cent of bank or credit card customers had a good idea how to make a complaint and 27 per cent had no idea how to go about making such a complaint.
The Regulator has written to all credit institutions in Ireland to highlight certain issues relating to the handling of consumer complaints.
This follows an inspection by the Regulator, earlier this year, to assess whether credit institutions' were complying with their obligations under the Consumer Protection Code.
The inspection found that some institutions were failing to keep adequate records of complaints.
It also found that some credit institutions were not affording customers the opportunity to have their verbal complaint treated as a written complaint.
In some cases complainants were not receiving written confirmation of the outcome of the credit institution's investigation into their complaints.
The Regulator also informed institutions that they must inform complainants of their right to refer the complaint to the Financial Services Ombudsman. “This was not happening consistently in all credit institutions,” it said.
However, the Regulator found that credit institutions in Ireland had procedures and controls in place to deal with complaints to comply with the legal requirements.
It also noted there had been significant improvements in procedures since its last inspection in 2004.
Consumer director of the Financial Regulator Mary O'Dea said: " Our research clearly indicates that customers are not sufficiently aware of their financial institution's complaints handling process.
Ms O’Dea said: “Credit institutions should not wait for customers to complain before providing information on the process, but should actively inform its customers of its complaints process, as a matter of course.”
She also advised consumers that where they are not satisfied with a product or service from any regulated entity that they should complain in the first instance to their product provider and if they are still dissatisfied, to the relevant ombudsman scheme.
