Armenia has recently introduced a comprehensive legal and regulatory framework for consumer protection in the financial sector. The Central Bank of Armenia, which has supervisory authority in the field of consumer protection, established a separate dedicated department on consumer protection, which operates within the Central Bank. In 2008, the Central Bank of Armenia initiated policy reforms to increase public confidence towards the financial system and enhance financial mediation, which resulted in the enactment of the following three laws related to consumer protection: Law on Consumer Credit, Law on Attraction of Banking Deposits, and Law on Financial System Mediator. Additionally, in 2009, the Central Bank of Armenia issued several regulations addressing certain provisions of these laws.

Armenia has recently introduced a comprehensive legal and regulatory framework for consumer protection in the financial sector. The Central Bank of Armenia, which has supervisory authority in the f...

There is no comprehensive regime for consumer protection in the financial industry. Despite the adoption of the Consumer Rights Protection Act, 2009, this law does not apply to financial services. In 2011, the Ministry of Commerce, whose National Consumer Rights Protection Department implements the Act, made statements indicating that an amendment is contemplated that would expand the Act's coverage to financial services. In the meantime, Bangladesh Bank has included the first consumer protection provisions applicable to banks in its Guidelines on Mobile Financial Services. These Guidelines include disclosure of consumer rights and obligations and basic complaints and dispute resolution procedures through banks and the Bangladesh Bank.

There is no comprehensive regime for consumer protection in the financial industry. Despite the adoption of the Consumer Rights Protection Act, 2009, this law does not apply to financial services. ...

Bolivia lacks a framework for financial consumer protection. The provisions of the Supreme Decree No. 29519 of 2008, which regulates competition and consumer protection, are not easily applicable to financial services and products. The Law No. 1488 of 1993 on Banks and Financial Entities  of 1993 (as amended through 2008) has no provisions specific to consumer protection. While consumer protection does not seem to be a priority for the financial sector supervisor, the Supervisory Authority of the Financial System (ASFI) has introduced disclosure standards for MFIs, including the obligation to disclose terms and conditions in loan agreements, in particular with regard to interest rates, charges and fees.

Bolivia lacks a framework for financial consumer protection. The provisions of the Supreme Decree No. 29519 of 2008, which regulates competition and consumer protection, are not easily applicable t...

In Egypt, there is a specific consumer protection law, Law No. 67 of 2006 and accompanying Executive Regulations, which created the Consumer Protection Agency (CPA). The CPA is the supervisory authority in charge of enforcing the law and is authorized to set adequate programs and work plans, receive and investigate complaints filed by consumers and NGOs, and coordinate/cooperate with other governmental bodies to achieve the proper implementation of the law.

Other relevant regulations include the data privacy and interest rate provisions of the Law of the Central Bank, Banking Sector and Money (Law No. 88 of 2003) and its Executive Regulations, as well as the Law for the Regulation of Non-Banking Financial Markets and Instruments (Law No. 10 of 2009). The latter sets up the Egyptian Financial Supervisory Authority, also known as the “Single Regulator,” which supervises all non-banking financial services.

In Egypt, there is a specific consumer protection law, Law No. 67 of 2006 and accompanying Executive Regulations, which created the Consumer Protection Agency (CPA). The CPA is the supervisory auth...

The Investigation and Consumer Reporting Office (ICRO) within the Banking Supervision Department (BSD) of the Bank of Ghana has the responsibility of protecting financial consumers in Ghana and educating them on their rights and responsibilities. The ICRO regulates both banks and non-bank financial institutions and receives customers'™ complaints, petitions and grievances for redress. It is mandated to investigate all forms of complaints and alleged irregularities between and among parties in the banking industry, including the microfinance sector.

In 2006, the Ghana Microfinance Policy recommended that MFI apex organizations be encouraged to develop and implement industry standards. In January 2009, Ghana approved a National Strategy for Financial Literacy and Consumer Education in the Microfinance Sector. The main objective of this strategy is to improve financial capability as well as to educate customers on their rights and responsibilities. In addition, a complaint center that specifically addresses the needs of consumers in the microfinance sector is planned to be created as part of this strategy. This proposed center would play the role of ombudsman for financial services.

The Investigation and Consumer Reporting Office (ICRO) within the Banking Supervision Department (BSD) of the Bank of Ghana has the responsibility of protecting financial consumers in Ghana and edu...

Consumer protection in India is covered by both statutory regulation and by voluntary membership bodies. As discussed below, key players in consumer protection include the Reserve Bank of India (RBI), the Banking Codes and Standards Board of India (BCSBI), the Banking Ombudsman, the Indian Banking Association, and Consumer Courts as well as banks with internal customer service mechanisms.

First, RBI, a main regulator for banks and other financial institutions, establishes regulation and policy related to consumer protection. For instance, there are a number of circulars relating to fair practices at NBFCs. Additionally, the 2011 NBFC-MFI Directions include several provisions on pricing, transparency, recovery methods, and avoidance of multiple-borrowing. Secondly, banks play a role in consumer protection by adhering to RBI issued regulations and guidelines, such as the Grievance Redressal Mechanism in Banks of 2008. This circular advises banks to implement an internal customer service mechanism that receives and addresses complaints from its customers and resolves complaints in a fair and efficient manner. These guidelines, which are further explained in a model document released by the Indian Banks Association, are also stipulated by the BCSBI. Similarly, the RBI Circular on the Use of Business Facilitators and Business Correspondents of 2006 requires each bank to establish "grievance redressal machinery" to redress complaints about services rendered by business correspondents and business facilitators and widely publicize this machinery through electronic and print media. These consumer-protection related requirements are further elaborated in the 2010 Guidelines for Engaging Business Correspondents.

In a majority of the states in India, the RBI has set up local Banking Ombudsmen, who act as arbiters of customers' disputes with banks. At an appellate level, ombudsmen handle complaints and grievances that have not been fully resolved by the banks or have not been adequately resolved in the opinion of the customer.

The Consumer Protection Act No. 68 of 1986, which impacts financial institutions, established the Central Consumer Protection Council and the State and District Consumer Protection Councils, and establishes courts at the district, state, and national level for the resolution of customer disputes. Courts are located in district headquarters and do not require legal representation in order to press claims; however, customers may be reluctant to pursue these options due to the duration of decision-making and the likelihood that banks will simply appeal unfavorable outcomes.

The Banking Codes and Standards Board of India (BCSBI), which started as a collaborative venture between the banking industry and the RBI in 2005, serves as an independent and autonomous watchdog for the industry. The BCSBI is engaged in developing standards, improving transparency, and improving relations between banks and customers, and boasts over seventy member banks. The BCSBI has developed the Banking Code Rules (covering member bank obligations to BCSBI) and the Code of Bank's Commitment to Customers Code (covering member bank commitments to customers), also referred to as the Fair Practices Code, with which all member banks must comply. The BCSBI also requires all banks to disseminate information to customers and manages a web-based helpline for customers although it is not widely used.

Consumer protection in India is covered by both statutory regulation and by voluntary membership bodies. As discussed below, key players in consumer protection include the Reserve Bank of India (RB...

Indonesia’s National Consumer Protection Agency (NCPA) was mandated by the Law No. 8 Concerning Consumer Protection, but did not commence operations until 2004. The NCPA falls under the Directorate of Consumer Protection, and statistics on its website reflect that about 50% of consumer complaints are about banking and financing services, out of only 56 reported cases. The NCPA functions include: helping the government to formulate consumer protection policy; encouraging the development of consumer protection NGOs; disseminating consumer protection information; and accepting consumer complaints.

The Consumer Dispute Settlement Board, with offices throughout Indonesia, was established to provide a forum for out-of-court settlement of consumer disputes and has quasi-judicial powers of investigation and enforcement, including the ability to impose administrative sanctions. The Board also has the ability to control the inclusion of standard clauses in consumer contracts. Consumer protection NGOs and the Directorate of Consumer Protection also offer dispute settlement services.

There are over 200 consumer protection NGOs in Indonesia, and they work to improve consumer awareness of their rights and obligations, as well as accepting consumer complaints and assisting in their resolution, bringing class action suits in the courts, and helping the government and communities in implementing consumer protection.

Indonesia has established policies to implement financial sector reform in recent years so as to minimize the risk of a recurrence of the economic crisis of 1998. Bank Indonesia, the independent central bank of Indonesia, has the primary authority to license, supervise and regulate banks, including those banks conducting business based on sharia principles. All banks are required to be members of the Indonesia Deposit Insurance Corporation (IDIC), established in 2004. The Minister of Finance has the authority to issue or revoke licenses of finance companies. The National Sharia Council has the power and function of issuing fatwas concerning products, services and business of banks conducting business based on sharia principles.

Banks must keep secret all information on depositors and their deposits; however, information on customers other than savings customers and depositors is not considered subject to bank secrecy requirements. In addition, there are certain exceptions made to permit disclosure: to tax authorities; for use in criminal and civil proceedings; in legal proceedings between a bank and its customers; for information exchanges between banks; upon written request by a customer or their agent; and upon the request of a depositor’s heirs. Information disclosed between banks may only be disclosed to a director or specially designated officer of a bank.

The Business Competition Supervisory Commission has broad powers to investigate any complaints of non-compliance with the Law No. 5 Concerning Ban on Monopolistic Practices and Unfair Business Competition of 1999, assess losses resulting from such actions, and impose administrative sanctions on businesses such as injunctions, compensation, and fines. It also reviews any mergers, acquisitions, or consolidations that may have an anti-competitive effect. The Commission’s decisions are subject to a judicial appeal process.

The Credit Information Bureau (BIK) at Bank Indonesia officially opened in June 2006 and administers the Debtor Information System (DIS) by gathering positive and negative reports concerning both individual and business entity creditors. Membership in the BIK is mandatory for commercial banks, large rural banks, and non-bank credit card providers, and voluntary for smaller rural banks, non-bank financial institutions, and cooperatives. Individual Debtor Information (IDI) history can be accessed upon request by financial institutions, BIK members, and the public, both as individuals and business entities. A complaint procedure has been established for those who claim that their credit history data is inaccurate. Credit referencing with the DIS no longer applies to microcredit loans.

Indonesia’s National Consumer Protection Agency (NCPA) was mandated by the Law No. 8 Concerning Consumer Protection, but did not commence operations until 2004. The NCPA falls under the Directorate...

Consumer protection in Kenya lacks a cohesive policy and regulatory framework without a market-wide consumer protection law or authority. The Banking Act gives authority to the Central Bank of Kenya (CBK) to regulate banking activities, but does not define the specific mandate for consumer protection beyond regulating in the interest of consumers. The Banking Regulations of 2006 prescribe procedures to be followed for increasing the rate of banking and other fees. Particular rules govern unlawful, misleading and comparative advertising. Recourse mechanisms are left to individual banks. On the ground, a wide range of practices exist around disclosure of prices and conditions of different financial services.

Deposit-taking MFIs are regulated by the CBK with the same conventions found in the banking regulations. The Microfinance (Deposit Taking MFI) Regulations of 2008 forbid fraudulent or reckless credit and prescribe know-your-customer (KYC) requirements. Few other measures have been set in the regulations that implement the Microfinance Act of 2006. Mobile money has taken off in Kenya in an undefined regulatory space. No specific regulations about non-bank companies offering mobile financial services exist. However, the National Payment System Department (NPSD) of the CBK has provided oversight to M-PESA and other microfinance service providers (MFSPs) focusing on the integrity of information technology and the service delivery systems protecting customers from operational failures and financial failure of the MFSPs.

Savings and Credit Cooperatives (SACCOs) are constituted under the Cooperative Societies Act of 1997 and registered with the Cooperative Registrar in the Ministry of Co-operatives Development and Marketing. The SACCO Societies Act of 2009 established a comprehensive regulation and supervision framework specifically for the SACCOs, creating the SACCO Societies Regulatory Authority (SASRA). For members of SACCOs covered by SASRA, the prudential regulation and supervision will greatly increase consumer protection. SACCO members may take complaints to the District or Provincial Cooperative Officer, which are eventually forwarded to the Cooperative Tribunal.

While Kenya does not have cross-market consumer protection legislation, the Restrictive Trade Practices, Monopolies and Price Control Act of 1989 is the most comprehensive legislation related to competition in Kenya. Although the act does not empower consumer advocacy organizations to lodge a complaint or contain provisions on consumer welfare, the Public Complaints Commission does provide third-party recourse for consumers of public sector services.

Consumer protection in Kenya lacks a cohesive policy and regulatory framework without a market-wide consumer protection law or authority. The Banking Act gives authority to the Central Bank of Keny...

In Kyrgyz Republic, existing financial laws contain many provisions aimed to protect customers. Microfinance organizations are free to set interest rates. The Medium-Term Microfinance Development Strategy for 2006-2010 emphasizes the importance of increasing customer protection. The main authority of financial consumer protection is the National Bank of the Kyrgyz Republic, which has the power to take a variety of administrative measures against unfair credit conditions set by microfinance organizations. There are currently anticipated positive amendments related to consumer protection.

In Kyrgyz Republic, existing financial laws contain many provisions aimed to protect customers. Microfinance organizations are free to set interest rates. The Medium-Term Microfinance Development S...

The regulatory and supervisory framework for financial consumer protection in Mexico is extensive and fairly complicated, due in part to the fact that there are many types of banking institutions, each belonging roughly to the public, private commercial, and popular savings and credit sectors. Several laws and government organs regulate financial institutions and the lending of money. Of these government organs, the most important is the National Commission for the Protection and Defense of Financial Services Consumers (CONDUSEF), which was created by a law of the same name in 2009.

CONDUSEF carries out its consumer protection mission in a number of ways. First, it keeps a registry of financial services users and of financial institutions offering loans. It also acts as an arbitrator between users and financial institutions, and in some circumstances provides legal assistance to users. CONDUSEF can recommend the adoption of certain laws and ways of implementing those laws to the federal executive branch. Finally, CONDUSEF provides users with accurate information relating to the services offered by financial institutions after analyzing information financial institutions distributes to users. When necessary, CONDUSEF will revise the standards for information, as well as revise contracts it feels are unfair. Other regulators include the Bank of Mexico and the National Banking and Securities Commission (CNBV).

The regulatory and supervisory framework for financial consumer protection in Mexico is extensive and fairly complicated, due in part to the fact that there are many types of banking institutions, ...

Presently, Nepal does not have an effective consumer protection mechanism to enforce and enhance compliance with consumer laws. Additionally, there is a general lack of awareness of consumers’ rights. However, Nepal’s 2004 ascendency to membership in the World Trade Organization is currently serving as an impetus to liberalize and reform the financial services sector, which should lead to better protections for consumers, such as increased transparency, disclosures, regulation, and supervision.

In 1989, Nepal’s Credit Information Bureau was established under the Banker’s Association of Nepal. The credit information bureau operates through a provision made in the Nepal Rastra Bank Act of 2002. Nearly ten years later, the Consumer Protection Act of 1998 was enacted to protect consumers from unfair and deceptive practices in the sale of consumer goods and services. (The act does not specifically refer to financial services when defining “services”.) However, according to news articles, this law has not been adequately enforced by the government.

Under the Consumer Protection Act No. 8 of 1998, the Consumer Protection Council was created to formulate policies relating to the protection of the rights and interests of consumers. Among its duties, the Council is mandated to disseminate consumer information relating to standards for services and also to inform consumers of unfair and deceptive practices. Similarly, the Compensation Committee was also created under the Consumer Protection Act No. 8 of 1998 and awards compensation to consumers who suffer losses as a result of prohibited activities. A Compensation Committee has been established in each district and its decisions can be appealed to the Appellate Court.

In 2007, the government enacted the Competition Promotion and Market Protection Act No. 35, which defines anti-competitive practices and bars them. To date, the law has been ineffective because the government has yet to establish the necessary enforcement mechanisms. Recently, the government announced its intent to introduce deposit insurance in the near future, and the Nepal Rastra Bank has proposed a deposit guarantee scheme to the Finance Ministry.

In Nepal, there are several activist consumer organizations, including the Forum for Protection of Consumer Rights-Nepal and the Forum for the Protection of Public Interest (PRO PUBLIC). PRO PUBLIC acts as a watchdog in several sectors including consumer rights, is involved in dispute resolution and litigation, and works to enhance the capacities of local and grassroots organizations.

Presently, Nepal does not have an effective consumer protection mechanism to enforce and enhance compliance with consumer laws. Additionally, there is a general lack of awareness of consumers’ righ...

In June 2011, the Nicaraguan National Parliament enacted the first law that contains consumer protection provisions specific to microfinance institutions. Most of these provisions will apply to any microfinance financial intermediary institution (IFIMs) or other institutions registered with the new microfinance regulator, Conami. This law covers issues of truth in advertising, disclosure to consumers, pricing transparency (including use of an effective interest rate), and financial consumer rights. The law is expected to come into effect in the beginning of 2012.

In June 2011, the Nicaraguan National Parliament enacted the first law that contains consumer protection provisions specific to microfinance institutions. Most of these provisions will apply to any...

The regulatory and supervisory framework for financial consumer protection in Nigeria is still in development. The relevant legislation is the Consumer Protection Council Act No. 66 of 1992. This act creates a mechanism for consumers to file complaints and enables the Consumer Protection Council (CPC) to attempt to mediate and provide redress when it determines that a violation has taken place. There is currently no agency or law in Nigeria specific to financial consumer protection, but the CPC's mandate encompasses all products and services. Amendments to the CPC Act that would expand the CPC's enforcement powers have been pending before the National Assembly for some time. In 2009, a very comprehensive National Consumer Credit Regulatory Commission Bill was introduced, but not passed by the National Assembly.

The Central Bank of Nigeria (CBN) also plays a role in consumer financial protection, despite a lack of specific legislation or regulation on this subject. The CPC has developed a practice of forwarding unresolved financial sector complaints to CBN for resolution. In late 2009, CBN began to take measures to address widespread card fraud, including a requirement that all Deposit Money Banks (DMBs) establish consumer help desks for ATMs. This was greatly expanded in August 2011 with a new circular requiring all financial institutions to have help desks to handle all consumer complaints within a certain time frame, and report complaints regularly to the CBN.

The regulatory and supervisory framework for financial consumer protection in Nigeria is still in development. The relevant legislation is the Consumer Protection Council Act No. 66 of 1992. This a...

Pakistan does not have federal legislation for financial consumer protection in place, despite its elaborate regulatory and supervisory system for the financial sector. The Consumer Rights Commission of Pakistan (CRCP), a non-governmental consumer protection organization, developed a Model Consumer Protection Act in 2001 taking into account the best practices from many countries and launched campaigns for enactment and implementation of consumer protection laws in all provinces. As a result, Balochistan and Punjab enacted their own Consumer Protection Acts in 2003 and 2005 respectively; however, as of 2009, the act has only been implemented in Punjab. Other relevant provincial-level legislation related to consumer protection include the Islamabad Consumer Protection Act of 1995 and the North West Frontier Province Consumer Protection Act of 1997.

Despite the lack of federal legislation for financial consumer protection, the State Bank of Pakistan (SBP) is issuing guidelines in an effort to enhance consumer protection. In 2004, SBP issued BPD Circular No. 17 Guidelines In Dealing With Customers Complaints which sets forth the minimum guidelines for banks and development finance institutions to follow. Loan recovery procedures (such as penalties on default, actions taken for recovering loans by lenders, etc.) are largely unregulated and each financial institution applies its own internal policy in implementing its loan recovery procedures. Although under the Financial Institutions (Recovery of Finances) Ordinance of 2001, a special banking court was established to oversee the loan recovery procedures of the financial institutions, it is uncertain whether microfinance institutions or microfinance banks (MFBs) are subject to this ordinance.

When banks were nationalized in 1974, the Pakistani government assumed responsibility for safeguarding customer deposits. Because a number of banks have been re-privatized since that time, SBP is looking to establish a deposit insurance system to replace the government guaranty. If deposit insurance replaces the government guaranty for most institutions, depositors will have a more limited safety net.

In 1992, SBP established a central Credit Information Bureau (CIB) that collects borrower credit information from its members in order to determine their credit worthiness and prevent over-indebtedness of the borrower. All commercial banks, development finance institutions, non-bank financial companies and MFBs are required to be members of CIB. SBP has also issued the Branchless Banking Regulations of 2008 which include a number of provisions aimed at protecting consumers.

With respect to the microfinance industry, Pakistan Microfinance Network (PMN), which is an association of microfinance institutions, MFBs, NGO-supported institutions, and the Rural Support Program, acts as a self-regulatory organization that oversees the microfinance industry and complements the oversight function of SBP. The SBP issued a set of Prudential Regulations for Microfinance Banks/Institutions of 2007. The regulations make it "incumbent" upon MFBs to "facilitate the borrower in making an informed decision." Thus, MFBs are required to not only point out, but also explain the terms and conditions of the contract to the borrower, and in a local language if required. Education of customers is also a responsibility placed on MFBs. The PMN has also come out with a Code of Conduct. Signatories to this code are member institutions. The Code also lays down consumer protection guidelines that ought to be followed by members. The Code requires that the consumer be made effectively aware of the repayment schedule and amount of debt it is effectively taking on, computing interest into the repayment burden.

Pakistan does not have federal legislation for financial consumer protection in place, despite its elaborate regulatory and supervisory system for the financial sector. The Consumer Rights Commissi...

The regulatory and supervisory framework for financial consumer protection regulation in Peru is extensive. Transparency and fair treatment are particularly emphasized, as are the requirements on disclosures and sales/marketing practices. In this context, financial institutions are free to set interest rates, charges and fees, though abusive terms and conditions are strictly regulated. The Superintendency of Banking and Insurance (SBS) has broad regulatory and enforcement authority (including sanction powers) in a number of issues ranging from transparency to service quality. Usually it does not solve disputes between consumers and providers. It has power over banks, financial enterprises, rural savings and credit banks (CRACs), municipal savings and credit banks (CMACs), and entities for development of small and micro enterprises (EDPYMEs). The National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) has among its tasks to provide consumer information and education, issue regulations, and offer recourse. Within INDECOPI, the Defense Tribunal for Competition and Intellectual Property is the second and last administrative recourse available to consumers after the Executive Commission for Consumer Protection (CPC), which oversees the application of the Consumer Protection Law (Supreme Decree No. 006-2009-PCM) and resolves grievances. INDECOPI’s Consumer Protection and Complaints Office (OSCAR) is the “first aid” for consumers, especially to low-income people.

The Association of Peruvian Banks (ASBANC), an association representing 18 entities in the financial private sector in Peru, created the Ombudsman for Consumer Financial Services (DCF) in 2003. The DCF acts as an independent mediator to prevent or resolve conflicts between clients and the providers in the ASBANC network when there is no other recourse available to the customer.

The regulatory and supervisory framework for financial consumer protection regulation in Peru is extensive. Transparency and fair treatment are particularly emphasized, as are the requirements on d...

Financial consumer protection in the Philippines is pursued through many measures embodied in various laws and regulations, some specifically focusing on the provision of microfinance services. The protection of microfinance clients is a main concern for policy makers and financial regulators, with the aim to ensure transparency of transactions and fair practices, and to establish mechanisms to provide for redress and recourse. Bangko Sentral ng Pilipinas (BSP) implements the Truth in Lending Act No. 3765 and the Consumer Act No. 7394 of the Philippines. Within BSP, the Consumer Affairs Group specializes in consumer protection. The Securities and Exchange Commission (SEC) oversees compliance with consumer protection regulation by non-profit organizations. In 2007, the National Credit Council (NCC) and the National Anti-Poverty Commission (NAPC) published the Microfinance Consumer Protection Guidebook.

Financial consumer protection in the Philippines is pursued through many measures embodied in various laws and regulations, some specifically focusing on the provision of microfinance services. The...

The consumer protection regime in Romania with regard to financial transactions has been strengthened in recent years. Laws have been passed to make consumer credit transactions more transparent, and to specifically define creditors’ obligations and impose sanctions for noncompliance. The primary agency responsible for consumer awareness and compliance with consumer protection laws is the National Authority for Consumer Protection (ANPC), established in 1992.

The ANPC has helped to establish offices of the European Consumer Center throughout Romania, as well as the Consulting Center, to provide advice to consumers. Two non-governmental organizations, the Romanian Association for Consumers’ Protection (APC-Romania) and the National Association for Consumers’ Protection in Romania (ANPCPPS), represent consumers on consultative bodies, instigate court proceedings on behalf of groups of consumers, and provide general consumer information.

Consumers can seek recourse in the courts under the Civil Code and the Code of Civil Procedure, but there is no system of “small courts” for disputes over small amounts of money, and the cost of a court procedure is about 20% of the amount claimed.

The National Audiovisual Council reviews all radio and TV advertising of financial services. The Data Protection Authority ensures maintenance of the privacy of personal information. The Competition Council reviews and intervenes in anti-competitive practices, including those in the financial sector.

The consumer protection regime in Romania with regard to financial transactions has been strengthened in recent years. Laws have been passed to make consumer credit transactions more transparent, a...

The issue of consumer protection in the financial market has increased in importance recently with the development of consumer finance and insurance. There is neither specific regulation nor a specific public authority supervising consumer protection in the microfinance sector.  Federal Law No. 2300-I of 1992 on Protection of Consumer Rights lays down general provisions to protect consumers of marketed products and services. The authority to monitor compliance with the law is delegated to a special federal service (Rospotrebnadzor). 

There is currently no specific legislation governing consumer credit, collection activities, and the bankruptcy of individuals. Numerous cases of abuse have been reported in these spheres. In the absence of specific legislation, interpretations of the broader Civil Code provisions made by supervising authorities and higher courts are particularly important. In recent years, provisions were added to the Federal Law No. 395-I of 1999 on Banks and Banking Activities to ensure disclosure of the full cost of credit and to regulate the procedure of changing interest rates on consumer loans and deposits.

A Deposit Insurance Agency has been established in the form of a state corporation and authorized to protect the rights of depositors and compensate them in the event their bank goes bankrupt. Bank deposits of natural persons are insured for 100% up to 700,000 rubles (about 24,000 US dollars). 

Natural persons investing in securities are protected by a special Federal Law No. 46-FZ of 1999 on Protection of Investors Rights and Lawful Interests on the Securities Market. From a legal point of view, such investors are not recognized as consumers. The responsibility to monitor compliance with this law is assigned to a special oversight body, the Federal Service for Financial Markets (FSFM), but FSFM is not a mega-regulator and is only responsible for the securities market. In addition to FSFM, there is the Federal Antimonopoly Service, which is active in monitoring compliance with the Federal Law No. 135-FZ of 2006 on the Protection of Competition. This law was designed to ensure the free movement of goods, protection of competition, and freedom of economic activity in the Russian Federation.

Supervision over credit cooperatives is exercised by self-regulatory organizations, which in turn are overseen by the Ministry of Finance. This system of supervision is still under construction, since it was established by the Federal Law No. 190-FZ of 2009 on Credit Cooperation.

In general, the regulation of consumer protection in the Russian financial market can be described as fragmented rather than systemic. Certain universal approaches applicable to different segments of the financial market (banks, insurance, and investment in securities) are still being developed. 

The issue of consumer protection in the financial market has increased in importance recently with the development of consumer finance and insurance. There is neither specific regulation nor a spec...

In Sri Lanka, consumer protection is addressed through a variety of methods, such as consumer education programs and complaint mechanisms. The Consumer Affairs Authority (CAA), which falls under the Ministry of Trade Commerce, Consumer Affairs & Marketing Development, is the main government institution mandated to protect consumers against unfair trade practices and safeguard fair market competition in Sri Lanka. Within the CAA, the Consumer Affairs & Information Division is responsible for promoting the establishment of consumer organizations and encouraging consumer education, which has mainly consisted of programs and competitions for school children and messages in the mass media. The Sri Lankan Legal Aid Commission, an independent statutory body, has a Consumer Protection Desk, which liaises closely with the CAA and conducts nationwide consumer awareness programs; it also gives legal advice to aggrieved consumers about seeking redress from the CAA.

In addition to consumer education programs, there are specific mechanisms to address complaints. The Compliance and Enforcement Division within the CAA investigates written complaints made by individual consumers or consumer organizations, which must be filed within three months of receipt of the service. Many disputes are settled through discussion and negotiation, but may be referred to courts, usually magistrate courts, if an agreement cannot be reached.

Finance-related consumer complaints in Sri Lanka are usually referred to the Financial Ombudsman. With the concurrence of the Central Bank, the voluntary Financial Ombudsman scheme was established in 2003 by the banking industry, registered finance companies, leasing companies and others supervised by the Central Bank. The Financial Ombudsman pursues the satisfactory settlement and resolution of complaints made by bank and financial institution customers and is empowered to impose binding monetary awards on participating financial institutions.

Along with the Financial Ombudsman and the Compliance and Enforcement Division, there is a separate three-member Consumer Affairs Council (CAC) which is empowered to investigate allegations of uncompetitive practices and hear consumer complaints and is mandated to promote the interests of consumers in respect to price and quality of goods and services. A consumer has thirty days to bring a complaint based on a breach of the statutorily established implied warranty, which is a warranty that services are appropriate for a particular consumer. The CAC has the power to review decisions of the CAA.

The Credit Information Bureau of Sri Lanka (CRIB) also plays a role in consumer protection by collecting trade, credit and financial information on borrowers and prospective borrowers of lending institutions. This information is considered confidential and inappropriate disclosure is prohibited. A voluntary bank deposit insurance scheme was introduced in 1987 but is seldom used. The Central Bank announced in January 2010 that it will introduce a mandatory scheme in 2010 that will initially cover up to 100,000 rupees per depositor.

In Sri Lanka, consumer protection is addressed through a variety of methods, such as consumer education programs and complaint mechanisms. The Consumer Affairs Authority (CAA), which falls under th...

There is currently no dedicated consumer protection law or regulatory framework in Tanzania. The country also lacks separate laws on data protection, fair credit reporting, data retention (data retention clauses scattered in various laws are not coordinated), consumer protection or admissibility of electronic evidence and certification of electronic signatures. However, select provisions of related laws and regulations address consumer protection topics. The Bank of Tanzania, as the country’s main financial regulator, is charged with protecting consumers in transactions with microfinance institutions.

There is currently no dedicated consumer protection law or regulatory framework in Tanzania. The country also lacks separate laws on data protection, fair credit reporting, data retention (data ret...

Although Uganda still lacks an overarching legal framework for consumer protection, the Bank of Uganda in 2011 took the significant step of issuing Guidelines for Financial Consumer Protection. These Guidelines apply to all regulated financial entities and their agents and cover disclosure, suitability, consumer recourse and other key consumer protection measures. Such action evidences regulatory initiative where the legislature has largely failed to act. Since 2004, bills for a competition law and a consumer protection law, drafted by the Ugandan Law Reform Commission, have awaited Cabinet approval and passage in Parliament. Although provider-level complaint and consumer recourse mechanisms are part of the 2011 Guidelines, there are no third-party or government dispute resolution  mechanisms for aggrieved consumers, despite the draft Consumer Protection Act's proposals for a small claims court and mediation and arbitration systems. 

More generally, Uganda has had since 1994 a deposit insurance scheme, which provides partial coverage for depositors’ losses in the event of a bank failure. The Micro Finance Deposit-Taking Institutions Act of 2003 also mandates the establishment of such a fund for certain microfinance institutions.

The Uganda Consumers’ Protection Association (UCPA) is an NGO that has among its objectives the following: to educate consumers, to defend consumer rights, to provide legal services in matters of consumer welfare, and to act as a consumer rights watchdog and lobbying organization. The Consumer Education Trust (CONSENT), an independent civil society organization founded in 2002, seeks to empower consumers, increase consumer awareness, promote ethical practices among businesses, and engage policymakers to enact pro-consumer policies. However, perhaps more effective in the financial sector has been the Association for Microfinance Institutions in Uganda (AMFIU), an umbrella organization of microfinance institutions involved with research, advocacy, information collection and dissemination, capacity building for members, and performance monitoring. In the belief that educating consumers is in the best interest of its members, it has implemented a Consumer Education and Transparency Programme, has developed a Consumer Code of Practice for its members, and has also published a Consumer Financial Education Handbook, funded by the European Union. These latter two documents can be found under "Recommended Reading".

Although Uganda still lacks an overarching legal framework for consumer protection, the Bank of Uganda in 2011 took the significant step of issuing Guidelines for Financial Consumer Protection. The...