Instruction No. 019 on the Management of Customer Complaints

BANQUE CENTRALE DU CONGO

THE GOVERNOR

INSTRUCTION TO CREDIT ESTABLISHMENTS AND MICROFINANCE INSTITUTIONS No. 019 RELATING TO THE MANAGEMENT OF CUSTOMER COMPLAINTS

The Central Bank of Congo,

Having regard to Law No. 005/2002 of May 7, 2002, relating to the constitution, organization, and functioning of the Central Bank of Congo, particularly Article 6;

Having regard to Law No. 003/2002 of February 2, 2002, relating to the activity and control of Credit Establishments, particularly Title 1;

Having regard to Law No. 002/2002 of February 2, 2002, laying down provisions applicable to Savings and Credit Cooperatives, particularly Article 6;

Having regard to Law No. 11/020 of September 15, 2011, establishing rules relating to the microfinance activity in the Democratic Republic of Congo, in Articles 57 to 61;

Considering the need to resolve amicably problems between Credit Establishments and Microfinance Institutions, on the one hand, and their clients, on the other, in order to strengthen the latter's confidence in the financial sector;

Considering the urgency of creating the conditions for an inclusive financial sector through better management of disputes between the parties;

Hereby adopts the following regulatory provisions relating to the management of customer complaints.

Chapter 1: Scope of Application

Article 1:

This Instruction applies to Credit Establishments and Microfinance Institutions, hereinafter referred to as "subject establishments."

Chapter 2: Establishment of an Internal Mechanism

Article 2:

Subject establishments are required to put in place an internal control mechanism dedicated to complaint management, managed at a sufficiently high level of governance to resolve client claims as simply and quickly as possible to the fullest extent.

This mechanism must be subject to permanent and periodic controls as well as an evaluation, at least annually, by the audit committee.

Article 3:

The mechanism put in place by the subject establishment must include:

• A Central Unit responsible for processing and monitoring complaints and/or claims;
• Secondary units responsible for receiving complaints at all operational points of the establishment;
• Well-defined processing procedures and circuits;
• An IT system allowing for the centralization and monitoring of complaint processing;
• Procedures for informing clients about the internal and external complaint mechanisms;
• A committee specifically tasked with ensuring the efficiency of the complaint processing process and improving the procedures at their source. This task may be carried out by the audit committee, compliance, or Internal Audit for Microfinance Institutions;
• Training and awareness policies for personnel directly or indirectly concerned with complaint processing.

Chapter 3: Complaint Management Procedures

Article 4:

The client has the choice to address the Central Unit and/or the units responsible for receiving complaints at the operational points of the subject establishment directly.

Article 5:

Any person dissatisfied with a service provided by a subject establishment may lodge a complaint with it, which is required to provide a response to this claim within a timeframe established in its own texts, not exceeding forty-five (45) calendar days.

In the event of dissatisfaction with the response provided by the subject establishment, the interested party may seize the Central Bank of Congo pending the establishment of a Financial Services Observatory.

The Central Bank of Congo also has a maximum deadline of forty-five (45) calendar days to respond to the complaint of the concerned client.

Article 6:

Subject establishments are required to permanently inform clients about the internal and external complaint processing mechanisms and the processing process in terms of timeframe and procedure.

To this end, subject establishments may use, among other things, brochures, posters, advertising, and the press.

Article 7:

The subject establishment is required to assign a unique reference number to each complaint regardless of the mode of submission used, which number will be transmitted to the client to allow them to follow the progress of the processing.

Article 8:

Subject establishments must ensure that their personnel, directly or indirectly, concerned with complaint processing, benefit from adequate ongoing training on the tools and procedures provided for this purpose.

Article 9:

Subject establishments are required to include in the internal control report submitted to the Central Bank of Congo at the close of each accounting year, a chapter dedicated to the description of their complaint processing mechanism, including the IT tool used to centralize and monitor complaints and the activities carried out in this regard.

Article 10:

The client must, before resorting to the external complaint mechanism, seize the subject establishment by:

• a personal declaration at any branch or headquarters;
• a letter;
• a fax;
• an email;
• an online complaint form available on its website;
• telephone;
• any other available channel.

In the event that the complaint is introduced by telephone, the employee of the subject establishment must inform the client that the call may be recorded and that they must provide a written account of the complaint.

Seizing the complaint processing services by the client is free of charge.

Article 11:

The complaint introduced to the external body must respect the provisions of Article 10 and must in particular mention the unique reference number assigned by the subject establishment and the response provided to said complaint.

Article 12:

The Central Bank of Congo may hear the subject establishment and the client whenever necessary.

Article 13:

The Central Bank of Congo informs simultaneously, in writing, the subject establishment and the client of its opinion.

Article 14:

The subject establishment and the client must, within ten working days from this information, inform the Central Bank of Congo of their acceptance or refusal of this opinion.

Both parties retain the right to bring the matter, at any time, during the dispute, before the courts.

Article 15:

In the event that the subject establishment considers the client's complaint well-founded, it is required to immediately repair the damage by restoring the client to their rights.

However, the repair of damage suffered in the context of operations with external parties must be carried out within forty-five (45) working days.

Article 16:

The subject establishment must ensure that all complaints are treated fairly, objectively, and promptly.

Article 17:

The subject establishment must retain files relating to each client complaint, including the file on how the complaint was resolved, for at least ten years.

Article 18:

In the event of the client's refusal, the subject establishment cannot induce them to waive their right in order to benefit from certain advantages.

Chapter 4: Transmission of Statistics

Article 19:

Subject establishments are required to transmit quarterly to the Central Bank of Congo/Direction of the Surveillance of Financial Intermediaries an activity report including the following information:

• the mechanism put in place for complaint management;
• the number of complaints received and the dates of their occurrence;
• the origin of the complaint (headquarters, branch, counter, etc.);
• the channels and means used by clients for complaints as defined in Article 11 above;
• the nature of transactions related to complaints (deposit, withdrawal, credit, account management, etc....);
• the responses provided to complaints.

Chapter 5: Sanctions

Article 20:

Any failure to comply with the mechanism of this Instruction leads to the application of sanctions provided for by legal and regulatory texts.

Chapter 6: Transitional and Final Provisions

Article 21:

All contrary provisions in this matter are repealed, as of the entry into force of this Instruction.

Article 22:

This Instruction enters into force after a transitional period of three (3) months from its publication.

Done in Kinshasa, on January 3, 2019

Déogratias MUTOMBO MWANA NYEMBO Governor