The evolution of the financial consumer ombudsman institution in Russia

this article analyzes the historical development of the institution of the financial consumer ombudsman (also referred to as conciliator or mediator) in Russia. While this institution was formally established by law in 2018, the prerequisites for its emergence appeared earlier. The idea of the ombudsman originates abroad. Having evolved since the 18th century as a defender of citizens’ rights in a broad sense, in the second half of the 20th century ombudsmen began to focus specifically on the financial sector, resolving disputes outside of court proceedings. Countries such as the United Kingdom and Germany introduced insurance and banking ombudsmen. The enhancement of constitutional mechanisms for protecting human rights and freedoms contributed to the creation of specialized ombudsmen in various spheres of public life. One such ombudsman is the financial consumer ombudsman. Today, the activities of this official are governed by Federal Law No. 123-FZ “On the Financial Consumer Ombudsman”. Filing a complaint with the ombudsman, under certain conditions, is mandatory for consumers. However, prior to the legal establishment of this role, Russia also had a public conciliator in the financial market. This position, recognized voluntarily by financial companies and consumers, played a significant role in the development of alternative dispute resolution methods and the promotion of financial literacy. It is considered the predecessor to the state-established ombudsman introduced in 2018. The article explores the evolution of these institutions, compares certain outcomes of their activities, and concludes with an analysis of their strengths and weaknesses, offering potential solutions to identified problems.

financial ombudsman, consumer, financial organization, public conciliator, arbitrator, mediator