Africa-Press – Malawi. Complaints against financial institutions like banks and insurance companies are increasing following increased awareness, the Competition and Fair Trading Commission (CFTC) has disclosed.
Lately, the Reserve Bank of Malawi (RBM) and other stakeholders have increased awareness to awaken financial consumers as part of its broader financial literacy and inclusion efforts.
CFTC spokesperson Innocent Helema said, for the first time, the commission registered some complaints against financial service companies.
“In the 2024-25 financial year, the CFTC received 50 consumer complaints relating to financial services, out of a total of 481 complaints.
“This, we believe signifies that there is a considerable number of consumers in the financial services sector who are aware of consumer protection,” Helema said.
RBM earlier said with the proliferation of Mobile Money Operators (MNOs), there is a broader scope of financial service sector to regulate and was working with all stakeholders to ensure minimal service failures that inconvenience consumers.
According to CFTC, unconscionable conduct, misrepresentation of financial services and deceptive advertising are some of the common unfair trading practices in the sector.
CFTC has two memoranda of understanding (MOU) specifically with the RBM and they are aimed at cooperating in investigations, exchange of information, technical assistance and capacity building.
“Based on the MoU’s, previously we have jointly conducted financial sector awareness activities to sensitise players in the financial sector including commercial banks, insurance companies and micro financial institutions about their duties towards consumers,” Helema said.
According to RBM Head of Financial Literacy and Consumer Protection Division, Madalitso Chamba, RBM has intensified setting up of customer complaints sections within financial sector institutions to establish a transparent and easily accessible dispute settlement mechanism.
She further hinted that the increased awareness on the part of consumers has made financial institutions improve their handling of customers, saying heavy fines can be imposed on companies found in breach of consumer rights.
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