CBN RELEASES CONSUMER PROTECTION FRAMEWORK

The Central Bank of Nigeria (CBN) has released guidelines for consumer protection in Nigeria's world of finance.

According to CBN's director , Consumer protection department, U. A Dutse, it is fashioned after the nine protection principles developed by the Organisation for Economic Cooperation and Development ( OECD), as complimented by the World Bank.

It covers legal and regulatory framework, responsible business conduct, disclosure and transparency, consumer financial education and fair treatment.

It also covers protection of consumer assets and privacy, complaints handling and redress, competition, enforcement and consumer rights and responsibilities.

It is intended to guide all institutions under the regulation of the CBN on consumer protection practices.

Amongst its objectives are to protect consumer assets, ensure timely complaints handling, empower informed decision making by consumers and promote professionalism and ethics.

It covers commercial and merchant banks, specialised banks, micro finance, discount houses, finance institutions, Bureau de change, mortgage banks and credit bureaux.

It spells out consumer rights in the industry to include right to be informed, to be educated, to choose, right to safety, confidentiality, redress and fair treatment.

It also states consumer responsibilities to include self education about rights, duty to obtain accurate information, seek clarification and negotiate beneficial terms.

Consumers also have responsibility to honour obligations, protect financial institutions, provide accurate information and report unethical practices.

For example, it says that "All requests for information shall be responded to clearly, timeously and in writing or via the customers means of communication with appropriate documentation".

"Financial institutions shall act in the best interest of consumers in the provision of advice and execution of transactions"

"The CBN shall set guidelines for ethical debt collection practices within the industry".

In the event of contravention of best consumer protection practices, consumers redress will be in any of the following forms: refund, apology letter, restrictions on activities, suspension or denial of approvals, monetary penalties and suspension from or of board of directors amongst other measures.

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