Improving Protection in Financial Services for Russian Consumers

Over the last decade, consumer credit in the Russian Federation has expanded from almost nothing to 9.2 percent of Gross Domestic Product (GDP) in 2008. This is an average increase of 84 percent a year for five years. Recent developments in financial markets have highlighted the need for consumer protection and financial literacy for the long-term health of the financial sector. The rapid growth of household lending has been accompanied by an increase in the number of households that have difficulty in understanding the risks and obligations that they assume, or the full range of choices available. In the United States mortgage markets for instance, complex financial contracts were sold to borrowers, some of whom had weak credit histories. The consequences were disastrous, and highlight the importance of consumer protection and financial education to prevent other similar events.

Bibliographic Details

Main Author:	Rutledge, Sue
Language:	English
Published:	World Bank, Washington, DC 2009-12
Subjects:	ACCESS TO FINANCIAL EDUCATION, ARBITRATION, ASSETS, BAD INVESTMENT, BANK ACCOUNTS, BANK FINANCING, BANKING SECTOR, BANKRUPT, BANKRUPTCY LEGISLATION, BANKRUPTCY PROCEDURE, BANKRUPTCY PROCEDURES, BANKS, BEST PRACTICES, BORROWINGS, BUDGET PLANNING, BUSINESS MODEL, BUSINESS PRACTICES, CAPABILITY, CAR REPAIRS, CENTRAL BANK, CHECKS, COLLECTION AGENCIES, COLLECTION OF PAYMENTS, COMMERCIAL BANKS, COMPOUND INTEREST, CONSUMER, CONSUMER COMPLAINTS, CONSUMER CONFIDENCE, CONSUMER CREDIT, CONSUMER DEBTORS, CONSUMER DISCLOSURE, CONSUMER LENDING, CONSUMER PROTECTION, CONSUMER RIGHTS, CONSUMER SPENDING, CONSUMERS, CONTACT POINT, CONTRACT PROVISIONS, CONTRIBUTION, CREDIT COOPERATIVES, CREDIT HISTORIES, CREDIT PROVIDERS, CREDIT REPORTING, CREDIT RISK, CREDITS, DEBT, DEBT COLLECTION, DEBT COLLECTORS, DEBTORS, DEPOSIT, DISCLOSURE REQUIREMENTS, DISPUTE RESOLUTION, DISPUTE RESOLUTION MECHANISMS, EXPOSURE, FINANCIAL CONSUMER, FINANCIAL CONSUMERS, FINANCIAL CONTRACTS, FINANCIAL DECISIONS, FINANCIAL EDUCATION, FINANCIAL EDUCATION INITIATIVES, FINANCIAL EDUCATION PROGRAMS, FINANCIAL FUTURE, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL ISSUES, FINANCIAL LITERACY, FINANCIAL LITERACY SURVEY, FINANCIAL LITERACY SURVEYS, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL QUESTIONS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCIAL SERVICES PROVIDERS, FINANCIAL STABILITY, FINANCIAL STRATEGIES, FINANCIAL SYSTEM, FINANCIAL TRANSACTIONS, FRAUDS, GROSS DOMESTIC PRODUCT, INDIVIDUAL CONSUMER, INDIVIDUAL CONSUMER DEBTORS, INDIVIDUAL CONSUMERS, INDIVIDUAL DEBTORS, INFORMATION DISCLOSURE, INFORMED CONSUMERS, INSTITUTIONAL FRAMEWORK, INSURANCE, INSURANCE COMPANIES, INVESTING, INVESTMENT ADVICE, INVESTMENT DECISIONS, INVESTMENT FUNDS, LEGAL FRAMEWORK, LENDERS, LIQUIDATION, LIQUIDITY, LIQUIDITY RISK, LONG-TERM SAVINGS, LOW-INCOME, LOW-INCOME PEOPLE, MANDATE, MARKET DISCIPLINE, MARKET FAILURE, MARKET RISKS, MORTGAGE, MORTGAGE MARKETS, MORTGAGES, NEW INVESTORS, PAYMENT SERVICE, PAYOFF, PENSION, PENSION FUNDS, PENSION PLANNING, PENSION SCHEMES, PERSONAL BANKRUPTCY, PERSONAL INFORMATION, PRIVACY, PRIVATE FINANCIAL SECTOR, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PROFESSIONAL ASSOCIATION, PROFESSIONAL ASSOCIATIONS, RAPID GROWTH, REAL ESTATE, REORGANIZATION, RESIDENTIAL MORTGAGES, RESIDENTIAL REAL ESTATE, RESULT, RESULTS, SAVINGS, SECURITIES, SENIOR, SERVICE PROVIDERS, STANDARD CONTRACT, STATE PENSION, SUPERVISION, SUPERVISORY AGENCY, TARGETS, TRANSPARENCY, TRUST FUND, UNFAIR PRACTICES, VALUABLE,
Online Access:	http://documents.worldbank.org/curated/en/2009/12/11677144/improving-protection-financial-services-russian-consumers https://hdl.handle.net/10986/10221
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