Financial Consumer Protection
From Open Risk Manual
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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.
