Slovakia : Technical Note on Consumer Protection in Financial Services, Volume 1. Main Report

As financial markets develop and deepen, one of the key issues for the fair, open and efficient operation of the markets is the protection of consumers rights in financial services. Be they bank depositors or borrowers or investors in insurance policies, securities or investment or pension funds, financial consumers need the ability to accurately understand the terms and conditions of their contracts and take action if the terms of contracts have been violated. The Note is the second report in a pilot program to analyze consumer protection in financialservices.The objectives of the Note are three-fold, to: (1) present a set of draft good practices for assessing consumer protection in financial services; (2) conduct a review of the existing rules and practices in Slovakia compared to the draft practices; and (3) provide recommendations on ways to improve consumer protection in financial services in Slovakia. The Technical Note wasprepared at the request of the Slovak Ministry of Finance, with the valuable support of the National Bank of Slovakia and other government agencies, ministries, and non-government organizations. In the past the World Bank has also prepared governance reviews of the Slovak financial sector for banking and private pension funds. Few guidelines are available for consumer protection in financial services. Consumer protection in financial services remains a new and developing area for which no consensus has developed on the broad parameters against which a specific country might be analyzed. This Note relied on the EU Directives related to consumer protection and the reports of European financialregulatory and supervisory agencies. Other sources were also used. In the United States, the Federal Trade Commission, the Securities and Exchange Commission and other state, federal and self-regulatory agencies have developed laws, rules and guidelines to protect financial consumers. In addition, the 2003 OECD Guidelines for Protecting Consumers from Fraudulent and DeceptiveCommercial Practices across Borders and the 1999 United Nations Guidelines for Consumer Protection served as useful reference points for general consumer protection not related to the financial sector. The recommendations in the Note go beyond the provisions of the EU Directives currently in force. As described in the EU Consumer Protection strategy announced in March 2007 and the April 2007 Green Paper on Retail Financial Services, European financial consumers wouldbenefit from stronger legal and institutional protections than are currently in place. Both in Europe and elsewhere, contemporary thinking on consumer protection is rapidly evolving. The Technical Note takes into account the international discussion on financial consumer protection and evolving good practices in financial consumer protection. Thus, the Note presents recommendations that are applicable to the Slovak financial sector, but in some cases go beyondthe minimum requirements set by EU legislation.

Bibliographic Details

Main Author:	World Bank
Format:	Other Financial Sector Study biblioteca
Language:	English en_US
Published:	Washington, DC 2007-07
Subjects:	ABUSIVE FINANCIAL PRACTICES, ACCESS TO CREDIT, ACCESS TO INFORMATION, ACCURATE INFORMATION, ADULT EDUCATION, ANNUAL PERCENTAGE RATE, APR, BANK ACCOUNTS, BANK LOANS, BANKING EDUCATION, BANKING SERVICES, BANKRUPTCY, BANKS, BEST PRACTICE, BORROWER, BORROWING, BORROWING MONEY, BROCHURES, CALCULATION, CHECK-CASHING CENTERS, CHECKING ACCOUNT, CLASSROOM TRAINING, COLLATERAL, COMMERCIAL CREDIT, CONSUMER, CONSUMER ADVOCACY, CONSUMER ADVOCACY ORGANIZATIONS, CONSUMER COMPLAINTS, CONSUMER CREDIT, CONSUMER CREDITS, CONSUMER EDUCATION, CONSUMER FINANCE, CONSUMER GOODS, CONSUMER GROUP, CONSUMER GROUPS, CONSUMER INFORMATION, CONSUMER LENDING, CONSUMER LOAN, CONSUMER LOANS, CONSUMER ORGANIZATIONS, CONSUMER PROTECTION, CONSUMER PROTECTION LAW, CONSUMER PROTECTION LAWS, CONSUMER PROTECTIONS, CONSUMER RIGHTS, CONSUMERS, CONTRIBUTIONS, COURT SETTLEMENT, CREDIT BUREAU, CREDIT CARD, CREDIT CARDS, CREDIT RECORDS, CREDIT RISK, CREDIT SCORES, CREDIT SCORING, CREDITOR, CREDITORS, CREDITS, CURRENT ACCOUNT, CUSTOMER SERVICE, DEBT, DEBT COLLECTION, DEBT COLLECTORS, DEBT CONSOLIDATION, DEBTS, DECEPTIVE PRACTICES, DELINQUENCIES, DELINQUENCY, DELINQUENCY RATE, DEPOSIT, DEPOSITS, DISCLOSURE REQUIREMENTS, ECONOMIC SECURITY, EXCHANGE COMMISSION, EXCHANGE RATES, FEDERAL RESERVE, FINANCE COMPANIES, FINANCES, FINANCIAL ABUSES, FINANCIAL ACTIVITIES, FINANCIAL ADVISOR, FINANCIAL ADVISORS, FINANCIAL CIRCUMSTANCES, FINANCIAL CONCEPTS, FINANCIAL CONSUMER, FINANCIAL CONSUMERS, FINANCIAL CRISIS, FINANCIAL EDUCATION, FINANCIAL EDUCATION INITIATIVES, FINANCIAL EXPERIENCE, FINANCIAL GROUP, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL INTERMEDIATION, FINANCIAL INVESTMENTS, FINANCIAL ISSUES, FINANCIAL LITERACY, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL MATTERS, FINANCIAL NEED, FINANCIAL PRACTICES, FINANCIAL PRODUCT, FINANCIAL PRODUCTS, FINANCIAL REGULATOR, FINANCIAL REGULATORS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SERVICES AUTHORITY, FINANCIAL SYSTEM, FINANCIAL TRAINING, FOREIGN CURRENCIES, FOREIGN CURRENCY, FORMAL EDUCATION, FUND MANAGEMENT, GROSS INCOME, HOME LOANS, HOME MORTGAGE, HOUSEHOLD APPLIANCES, HOUSEHOLD INCOME, HOUSEHOLD SAVINGS, INAPPROPRIATE FINANCIAL PRODUCTS, INDEBTEDNESS, INDIVIDUAL COUNSELING, INFORMATION TO CONSUMERS, INFORMED CONSUMERS, INFORMED DECISIONS, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INSURANCE POLICIES, INTEREST CHARGES, INTEREST RATE, INTEREST RATES, INVESTMENT ACCOUNT, INVESTMENT PRODUCTS, KNOWLEDGEABLE CONSUMERS, LENDER, LENDERS, LEVEL OF EDUCATION, LIABILITY, LIFE INSURANCE, LIFE INSURANCE POLICIES, LIFE INSURANCE POLICY, LIFE SKILLS, LOAN, LOAN AMOUNTS, LOAN TERMS, LOW COST, LOW FINANCIAL LITERACY, LOW-INCOME, LOW-INCOME FAMILIES, MAJOR LIFE EVENTS, MARKET PARTICIPANTS, MARKETING, MONTHLY PAYMENTS, MORTGAGE, MORTGAGE LOANS, MORTGAGE PRODUCTS, MORTGAGES, MUTUAL FUNDS, NATIONAL BANK, NET ASSET, PENALTY FEES, PENSION, PENSION ASSET, PENSION COMPANIES, PENSION FUND, PENSION FUNDS, PENSION SAVING, PENSION SECTORS, PERSONAL FINANCES, PERSONAL FINANCIAL INFORMATION, PREDATORY LENDING, PREPAYMENT PENALTIES, PRESS RELEASES, PRIVATE PENSION, PRIVATE PENSION FUNDS, PRIVATE PENSIONS, PUBLIC CONFIDENCE, PURCHASES, REAL ESTATE, REPAYMENTS, RESPONSIBILITIES, RETAIL BANKING, RETAIL FINANCIAL SERVICES, RETIREMENT, RETIREMENT PENSION, RISK MANAGEMENT, SALE, SALES, SALES TACTICS, SAVINGS, SAVINGS ACCOUNT, SAVINGS ACCOUNTS, SAVINGS GOALS, SCAMS, SECURITIES, SECURITIES DEALERS, SENIOR, SMALL BUSINESS, SOCIAL EXCLUSION, SOUND FINANCIAL DECISIONS, STOCK EXCHANGE, TIMELY PAYMENTS, TRAINING PROGRAM, TRANSACTION, TRANSACTION FEE, UNSCRUPULOUS LENDERS, UNSECURED PERSONAL LOANS, VALUABLE, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2007/07/16428248/slovakia-technical-note-consumer-protection-financial-services-vol-1-2 http://hdl.handle.net/10986/12788
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