Compensation raised in disputes relating to financial products

  • By Kao Shih-ching / Journalist

Amendments to the Financial Consumer Protection Act (金融 消費者 保護 法) came into effect on Friday, raising compensation benchmarks to NT $ 1.2 million (US $ 43,265) for investment-related products and NT $ 120,000 for non-investment income, NT $ 1 million and NT $ 100,000 respectively.

The rise in the benchmark follows changes in inflation and economic growth, and aims to strengthen consumer protection, the Financial Supervisory Commission said.

Under the new regulations, once the Financial Ombudsman Institution (FOI) has examined a consumer complaint about a financial product or service and determined the appropriate compensation, the business must accept its decision without power. to appeal.

Photo: Kelson Wang, Taipei Times

The products include securities, trusts, funds, derivatives, gold, foreign securities, futures and insurance policies linked to investments, the commission said Thursday.

In disputes over non-investment products, such as medical insurance, the finance company must accept FOI’s decision when it involves compensation of NT $ 120,000 or less under the new regulations, said the Commission.

The committee announced the draft amendments last month and received no objections from companies in the financial sector, Hsu Tsui-wen (徐 萃 文), head of the committee’s legal department, said at the meeting. ‘a press briefing.

In recent years, about half of the complaints did not require review by the FOI, as consumers and financial firms had reached settlements before cases moved to the review stage, said the faith.

Of the remaining complaints, about half were withdrawn by consumers and a quarter were resolved privately before FOI intervened, leaving about a quarter of the remaining complaints to FOI for decision, according to commission data.

The new regulations are not retroactive and an FOI decision is only binding on financial companies, the commission said.

If a consumer feels that the amount of compensation is insufficient, he can reject the offer, ask for new negotiations or take legal action, he said.

Comments will be moderated. Keep comments relevant to the article. Comments containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of the Taipei Times.

Source link

Previous Warren walks on water | News, Sports, Jobs
Next More Madison Area Physicians Providing Direct Primary Care | Local News