Starting December 21, the banking ombudsman will address disputes involving Kazakh citizens regarding all types of loans, including consumer loans, as reported by Kazpravda.kz citing the AIFC.
In August of this year, the Agency for Regulation and Development of the Financial Market implemented a series of legislative changes aimed at enhancing the protection of borrowers' rights and improving the financial dispute resolution system.
“One of the significant updates is the expansion of the banking ombudsman's powers. The changes will take effect on December 21, 2024. Now, he will consider disputes of Kazakh citizens regarding all loans, including consumer loans. Previously, the ombudsman was involved only in resolving disputes concerning mortgage agreements between individual borrowers and banks,” explained the AIFC.
The banking ombudsman is an independent figure whose decisions are mandatory for banks to implement. His services are free of charge. The primary role of the ombudsman is to facilitate pre-trial resolution of financial disputes between borrowers and lenders.
Before approaching the banking ombudsman, the borrower must first contact their lender. The ombudsman does not consider requests that are currently under judicial review and/or for which a court decision has become final, nor those that are resubmitted without new developments in the case.
On the same day, the microfinance ombudsman institution also began operations. Following a council meeting, by majority vote, Nazgul Yesteyusizova was elected as the microfinance ombudsman.