Financial Consumer Protection

Definition

Financial Consumer Protection means the institutional arrangement that aim to offer individuals (consumers) protection in the context of their engagement with a regulated Financial System.

Financial consumer protection is relevant to all users of financial services, but may be more important to poor and low-income customers that may exhibit low levels of Financial Literacy that creates challenges in understanding Financial Products and services as well as their rights and responsibilities.

Poor and low-income customers also have limited capacity to absorb losses, so the potential negative consequences of bad financial decisions on their Financial Wellbeing are high.

Financial Regulators are an important factor in ensuring financial institutions comply with Consumer Protection Law