What are the powers of the CONDUSEF?
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) has as its main functions to promote, advise, protect and defend the rights and interests of citizens who make use of financial products such as bank cards, credit loans, credit services (water, telephone, television and Internet) or insurance.
In addition, part of its mission is to spread financial education among the population and make the sector transparent, fighting fraud and abuse. It also has the following powers:
Report and solution to claims presented by citizens.
Reconcile as a friendly arbitrator between financial institutions and users.
Guide legally and legally to individuals who face controversies with financial companies before the competent authority.
Issue recommendations to government agencies at the federal and local levels, to banks or companies that provide financial products or services in accordance with the Law for the Protection and Defense of the User of Financial Services and the Condusef.
Complaints received by the Commission from the insurance sector
According to data reported by the agency, in 2017 42,901 insurance claims were attended, which represented an increase of 15% over the previous year.
The main complaints occurred in the sector were mainly in the auto product, then Life and finally Major Medical Expenses. In 2016, 14,765 claims were filed regarding vehicle insurance and in 2017, 18,213 claims had been attended.
Among the main causes of claims, the following stand out: denial of compensation by the insurer (39.6%), cancellation of the contract or breach of the policy (17.2%) and, finally, disagreement with the period of compensation to the insured (8.4%).
It should be noted that 74% of the processes presented to the Commission were resolved in ordinary or electronic management, and only 26% were resolved in conciliation, of which 4 out of 10 were favorable for the user.
How does the Condusef act in insurance matters?
The Commission intervenes as a mediator between the insurers and the contracting parties; and its main mission is to promote good relations between the parties and resolve any controversy that may arise between them.
It is estimated that 42% of the total complaints filed with CONDUSEF were regarding auto insurance, mainly because the company did not resolve the compensation to the contractor. For this reason, the body disseminates good practices among insurance companies through the evaluation of their services and the attention of their adjusters.
Similarly, as part of its educational mission, CONDUSEF offers timely information about the rights of the contracting parties and advice to acquire a policy that meets the user’s needs. Also, the population can make use of the coverage simulator, so that Mexicans know the products that are commercialized by duly authorized institutions.
Can the Condusef sanction financial institutions?
The Commission acts as a confined authority to encourage financial services entities to adhere to legal provisions. The body does not have punitive capacity, but it does issue resolutions to settle the conflict between the parties. To carry out the mission of protecting and defending the rights of citizens in financial matters, CONDUSEF implements the following corrective actions:
The agency can provide guidance on the financial product, as well as clarify the terms and conditions of the contract in which the rights and obligations of the signer are stipulated. Similarly, it functions as a legal aid entity.
In the event that users come to present a disagreement with the services or products of the insurers, banks or companies, the agency supports quickly and efficiently to reach a friendly solution between the parties.
The Commission acts as a mediator to file a formal claim with the institution that provides the service or product.
If necessary, the government body can issue a specialized opinion according to a technical and legal assessment, so that the person involved can file a complaint with competent courts.
In the event that an agreement is not reached in the conciliation process, the Condusef can act as an impartial arbitrator to resolve the matter.
When the arbitration is rejected by the financial company, Condusef can provide legal services free of charge to bring the matter to court, provided that the affected party does not have sufficient financial resources and has elements for adequate defense.
How does the Commission pay attention to citizens?
The Condusef has 36 representative offices throughout the national territory and also has a call center. Through this, the Commission warns and channels user complaints.
It also observes the doubts, clarifications and inquiries of the public in financial matters in its call center, representative offices and Internet portal. According to statistics from the site, the main reasons why the population approaches the Condusef are:
- Information on financial products and services.
- Issuance of Special Credit Report.
- Orientation about the Afore.
- Unrecognized charges on bank cards.
- Bad practices of banking institutions.
- Omission by any company regarding the cancellation of a financial service or product.
- Breach of the terms and conditions stipulated in the policy contracts.
- Irresolution of compensation by the insurance company.
It should be noted that the majority of the Commission attends to consultancies and consultations, while 17% of all citizens who come present some type of complaint.