Rules for Handling Client Complaints and Disputes

1. Definitions and Interpretation

Bank means joint stock company Baltic International Bank.
Bank’s Officer means Bank’s staff member who provides Client with service associated with the handling of Client-filed Complaint (also known as a Grievance) and / or giving reply to the Complaint.  
Client means any natural or legal person or an association of such persons to whom Bank provides financial services.
Committee means the Client Grievance Committee.
Complaint means client’s written or oral communication (submitted to Bank or Bank’s senior executive in person or telephonically) to express dissatisfaction over (i) the violation of client’s or  partner’s interests or (ii) an inappropriate quality of a service received by the person served.
Written Complaint means client’s written complaint filed in person or by using Bank-offered remote banking services.
Oral Complaint means client’s oral complaint filed in person to Bank’s Officer or telephonically.
Face-to-Face Client Service means client service that involves face-to-face interaction between Client and Bank’s Officer.

2. General Provisions

2.1. These Rules set forth the procedure whereby Client files Complaints to Bank.
2.2. These Rules are formulated in accordance with applicable laws and regulations of the Republic of Latvia, regulations issued by Latvia’s Central Bank and the financial regulatory authority, and Bank’s internal regulatory framework:

• Credit Institutions Act
• Consumer Protection Act
• Financial Instruments Market Act
• Payment Services Act
• Financial and Capital Market Commission’s  rules, regulations and orders
• Bank of Latvia’s statutory and regulatory requirements
• Bank’s Regulation Governing the Client Grievance Committee
• Bank’s Record-Keeping and Filing Guidelines
• Bank’s other internal guidance documents.

2.3. These Rules supersede the „Rules for Handling Client Complaints and Disputes” approved by Bank’s Board on 15 May 2008 (Minutes No. 01-5/20).

3. Types of Complaints. Complaint Handling System

3.1. Types of complaints intended to be covered by these Rules:
3.1.1. Written complaints
3.1.2. Oral complaints submitted telephonically
3.1.3. Oral complaints submitted in a face-to-face manner.
3.2. Written complaints may be initiated in the following ways:
3.2.1. in person
3.2.2. by registered mail
3.2.3. electronically (via electronic means of communication).
3.3. Under these Rules, Bank reviews and investigates written Complaints relating to:

• clearance remittances (cross-border credit transfers) and transactions involving electronic means of payment;
• information submitted by Bank to the Bank of Latvia’s Credit Registry according to the  Bank of Latvia’s Credit Registry’s Rules ;
• core investment services and ancillary / non-core investment services provided by Bank;
• other Complaints filed by Client to Bank.

3.4. Client may file a written Complaint not later than 45 (forty five) calendar days after receiving a particular financial service, unless a different time frame is stipulated by the relevant agreement entered into between Bank and Client.
3.5. Client’s Complaint may be 

• filed in person (to Bank’s secretarial and clerical personnel: Riga, Kalēju ielā 43, or Bank’s head office: Riga, Grēcinieku ielā 6), or
• mailed (by registered mail), or
• faxed at +371 67000555, or
• e-mailed to sudzibas@bib.eu, or
• otherwise delivered to Bank.

3.6. An oral Complaint may be made directly to Bank’s Officer.
3.7. Upon receiving a telephonic Complaint, Bank’s Officer records a concise summary of the  Complaint and Client’s (the Complainant’s) contact information, and informs Client that the Complaint will be referred to the appropriate area (unit) for processing and investigating the allegation.
3.8. To be complete, Client’s written Complaint must contain the following information :
3.8.1. Full details of the Complainant:

• natural persons: full name, personal ID number and actual residence address or a mailing address that Bank can use to send a response letter (natural persons /non-residents/ having no national identification  number must provide their passport data and actual residence address), contact telephone number;
• legal persons: corporate name, registration / company number, registered office or street / mailing address where the entity can be found or communicated with, full name and job title of the Complainant’s authorised representative, contact telephone number;

3.8.2. the date and place where the Complaint was written;
3.8.3. a description of the Complainant’s allegations, the nature and the subject matter of the Complaint, the details and circumstances which justify the Complaint (any evidence that might assist in the investigation), and the action sought by the Complainant.
3.9. A written Complaint must be signed. Complaints from legal persons must be signed by their authorised signatories (a person authorised to sign).
3.10. With oral Complaints, Clients are required to indicate the information specified in 3.8.1 and 3.8.3 herein above.
3.11. Client should enclose copies of all relevant documents (payment order, statement of the account, and others) specifically referred to in the Complaint and supporting the allegations.
3.12. In case of a Complaint that contains deficiencies (and Bank is not able to correct the deficiencies) and therefore does not satisfy the criteria of a proper complaint outlined in subparagraphs of paragraph 3.8 and paragraphs 3.9 and 3.11 above, Bank notifies the Complainant that (i) the Complaint cannot be referred for investigation (internal investigation will be suspended) and sets a definite time frame, thus giving the Complainant an opportunity to correct the deficiencies (if they are correctable) deficiencies Complaint; (ii) the Complaint will not be investigated (the Complaint does not qualify for  review) because the deficiencies are not correctable.
3.13. In the event of a dispute arising between Bank and its Client over a cross-border credit transfer where the amount transferred exceeds LVL 200 000, Bank shall inform the Financial and Capital Market Commission thereof no later than within five banking days after receiving Client’s Complaint.

4. Complaint Response Letters  

4.1.  Bank gives a written response to Client’s Complaint within 30 (thirty) calendar days after receiving the Complaint. Such response letter is sent to the address specified by Client.
4.2. If it takes a longer time for a Complaint to be reviewed, Bank gives Client an interim written  response. The purpose of the interim response is to notify Client that additional time is required to review the Complaint and to specify the reasons behind it.
4.3. If no written response is given to Client’s oral Complaint, Bank’s Officer notifies Client verbally of Bank’s decision.

5. 5. Other Complaint Review Procedure

5.1. Complaints other than those listed in Section 3 above include:
5.1.1.      Complaints submitted to the Banking Ombudsman run by the Association of Latvian Commercial Banks (ALCB is a public and statutory scheme for the members of the Association)
5.1.2.      Complaints in connection with Bank-provided core and ancillary investment services;
5.1.3.      Complaints submitted to the Consumer Protection Centre
5.1.4.      Complaints alleging the breach of the Payment Services Act
5.2.      Eligibility criteria for a Complaint to qualify for assessment by the Banking Ombudsman run by the Association of Latvian Commercial Banks:

• Complaint relates to clearance remittances (cross-border credit transfers) or transactions involving electronic means of payment and the value of the transaction complained (the aggregate amount of a series of explicitly linked transactions) does not exceed EUR 50'000.

5.3.  As for Complaints associated with Bank-provided core and ancillary investment services, Bank maintains a special-purpose register (complaint log) to file and maintain a record of all Complaints from existing and potential private Clients. The register contains the following information: Client’s full details (personally identifiable information), concise summary of the Complaint, the date of the Complaint submission, and information about action taken in connection with the Complaint.
5.4.  The Consumer Protection Centre reviews Complaints (alleging the breach of consumer protection laws) submitted by Clients (where Clients are consumers within the meaning of the Consumer Protection Act), including consumers of financial services. The Consumer Protection Centre reviews consumer Complaints (settles consumer disputes) over unfair contract terms, if a dispute arises between a consumer and Bank (service provider) over any specific provision of the contract/agreement.
5.5.   In addition to the cases listed in para. 5.4 above, Clients (who are consumers within the meaning of the Consumer Protection Act) may submit Complaints alleging the breach of the Financial Instruments Market Act and other consumer protection laws (if the breach is associated with the provision of investments services) to the  Consumer Protection Centre.
5.6. The Financial and Capital Market Commission reviews Complaints (alleging the breach of the Payment Services Act) submitted by the payment-services users who are not consumers within the meaning of the Consumer Protection Act, where a breach has caused or may cause considerable damage to the interests of the above mentioned service users (infringement of the collective interests).
5.7. The procedure for reviewing Complaints referred to in this Section is governed by the law applicable in the Republic of Latvia.

6. 6. Complaints, Disputes and Appeals Procedure

6.1.  After receiving from Bank a final response to  Complaint, Client can file an appeal (if Client is not satisfied with the outcome of the Complaint) and refer the complaint to the following complaint resolution avenues:
6.1.1.      the Banking Ombudsman run by the Association of Latvian Commercial Banks whenever the complaint relates to clearance remittances (cross border credit transfers) or transactions involving electronic means of payment and the value of the transaction complained (the aggregate amount of a series of explicitly linked transactions) does not exceed EUR 50'000 (limit to the amount of the complaint;
6.1.2.      court having jurisdiction over such complaints or the Court of Arbitration in accordance with the dispute settlement procedure stipulated by the agreement entered into between Bank and Client.