FMB way to end disputes

KUALA LUMPUR: Credit and debit card fraud, Internet banking disputes and unauthorised ATM withdrawals form the bulk of the 652 consumer complaints against the banking sector handled by the Financial Mediation Bureau (FMB) last year.

The FMB is an independent channel to resolve consumer disputes with financial service providers without having to go court, engage a lawyer or pay any fees.

FMB chief executive officer Jeremy Lee Eng Huat said the bureau has received 5,448 public enquiries so far this year - 2,206 for banking and 3,242 for insurance matters.

“We have 832 new cases registered this year and investigations are ongoing,” he added.

Of the 2,592 cases resolved last year which include those registered from previous years, half (51%) involved the mediator making the final decision, a third (36.6%) were resolved amicably by negotiated settlements, and the rest (12.4%) of the complaints were withdrawn by the complainants.

According to the bureau, bank card-related disputes increased from 272 cases in 2012 to 318 cases in 2013.

Apart from the loss of credit and debit cards, most card-related disputes involved compromised passwords, unauthorised online transactions, and cash advances, Lee said.

Of the 79 Internet banking cases received in 2013, most involved email-based scams (phishing).

On the 52 complaints received on unauthorised ATM withdrawals, most cases involved lost or stolen cards as well as compromised usage of the ATM card and personal identification number (PIN).

Lee said it was the duty of consumers to safeguard their cards and PIN or password from any third party.

For any mediation to take place, Lee said dissatisfied consumers must lodge their complaints with FMB within six months from the date of their financial service provider’s final decision.

“They must also lodge a police report although there is no need to wait for the police to complete investigation.”

He reminded consumers that FMB had no jurisdiction to hear cases that exceeded six years.

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