Consumer Protection Instructions
Financial Consumer protection is defined as the state whereby the rights of consumers of financial services are preserved through a clear legislative framework that identifies the relationship between providers of financial and banking services and their customers to ensure the consumers’ rights in terms of fairness, transparency, as well as protecting their rights when complaining. In addition, financial consumer protection involves raising consumers’ awareness and enabling them to take well-informed financial decisions through encouraging them to improve their knowledge and skills needed to manage their assets.
The financial consumer protection is a key element to achieve financial inclusion; as having a comprehensive framework for financial consumer protection leads to boosting confidence and competitiveness in the financial and banking system; thus improving the quality of financial services provided to customers, in addition to its contribution to encouraging individuals and increasing their access to financial services. Furthermore, lack of measures that protect consumers of financial sector, will expose them to unfair sales and collection practices, as well as accessing inappropriate financial services which may adversely affect their interests. This requires a system for financial consumer protection that would consider and achieve the following principles (a proper designing and providing of products, avoiding excessive indebtedness, transparency, responsible pricing, fair treatment of consumers, privacy of customers’ information, and mechanisms for dispute resolution). Furthermore, the system will also take into consideration customers' needs, especially those who lack the necessary financial education
