UAE introduces 'Sanadak', your go-to for financial grievances
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Dubai: UAE consumers can now address grievances against banks and licensed insurance companies through Sanadak - the country's pioneering ombudsman unit. Sanadak marks a crucial shift in consumer complaint handling and reduces the legal burden on individuals by providing a transparent and efficient resolution platform.
Sanadak's mission revolves around safeguarding consumer rights and ensuring efficient complaint resolution. With services rolled out on Thursday, the unit eliminates the need for consumers to take their claims to court and judicial authorities. According to Fatma Al Jabri, Chairwoman of Sanadak, this initiative is a testament to the UAE's commitment to creating a coherent financial landscape, fostering trust and ensuring stability.
“Sanadak is the first ombudsman that is independent in the Mena region, setting the benchmark for consumer protection and financial preparedness”, said Fatma Al Jabri.
The inception of Sanadak follows the UAE Central Bank's efforts in 2021 to establish the country's first financial consumer protection framework. The aim was to ensure the fair treatment and protection of banking and financial services customers. Sanadak's role, therefore, extends to overseeing consumer protection, streamlining the complaint resolution process previously handled by the Central Bank's Consumer Protection Department.
Traditionally, consumers were required to lodge complaints with their respective banks, escalating the issue to the Central Bank if needed. However, Sanadak has now taken over this process, allowing consumers to submit complaints free of charge for any product, service or offering provided by financial institutions and licensed insurance companies.
The rise in financial fraud poses a growing concern, with a reported 54% of people in the UAE admitting to being scammed at least once. The impact of cybercrime in the UAE, costing $746 million annually and affecting over 166,000 victims, further signifies the need for robust consumer protection measures.
Consumers can now lodge complaints by registering on Sanadak's website, with specific channels for financial services and licensed insurance companies. The eligibility criteria for complaint acceptance include instances of misleading, deceptive, fraudulent or unfair conduct by or on behalf of licensed financial institutions or insurers.
In case consumers are dissatisfied with the outcome, Sanadak allows for an appeal process, albeit at a cost of Dh500. This step ensures a fair and transparent mechanism for dispute resolution, balancing the interests of consumers and financial institutions.