Consumer Protection and Financial Literacy : Lessons from Nine Country Studies
The recent turmoil in financial markets worldwide has emphasized the need for adequate consumer protection and financial literacy for long-term stability of the financial sector. This Working Paper aims to summarize key lessons from reviews of cons...
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| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603082853 http://hdl.handle.net/10986/3816 |
| Summary: | The recent turmoil in financial markets
worldwide has emphasized the need for adequate consumer
protection and financial literacy for long-term stability of
the financial sector. This Working Paper aims to summarize
key lessons from reviews of consumer protection and
financial literacy in nine middle-income countries of Europe
and Central Asia (Azerbaijan, Bulgaria, Croatia, the Czech
Republic, Latvia, Lithuania, Romania, the Russian Federation
and Slovakia). All the country assessments used a systematic
common approach, based on a set of Good Practices for
Consumer Protection and Financial Literacy developed by the
World Bank's Europe and Central Asia Region. The
objective of the Working Paper is to contribute to the
international dialog on strengthening financial consumer
protection and financial literacy in emerging markets.A
financial consumer protection regime should meet three
objectives. First, consumers should receive accurate,
simple, comparable information of a financial service or
product, before and after buying it. Second, consumers
should have access to expedient, inexpensive and efficient
mechanisms for dispute resolution with financial
institutions. Third, consumers should be able to receive
financial education when and how they want it. A common
challenge among the nine countries is the need of an
adequate institutional structure for financial consumer
protection. However independent of the specific
institutional structures, financial consumers should have
one single agency where to submit complaints and inquiries.
Financial institutions should be required to apply fair,
non-coercive and reasonable practices when selling and
advertising financial products and services to consumers.
Personal data should also be carefully protected. |
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