Consumer Protection and Financial Literacy : Lessons from Nine Country Studies

The recent turmoil in financial markets worldwide has emphasized the need for adequate consumer protection and financial literacy for long-term stability of the financial sector. This Working Paper aims to summarize key lessons from reviews of consumer protection and financial literacy in nine middle-income countries of Europe and Central Asia (Azerbaijan, Bulgaria, Croatia, the Czech Republic, Latvia, Lithuania, Romania, the Russian Federation and Slovakia). All the country assessments used a systematic common approach, based on a set of Good Practices for Consumer Protection and Financial Literacy developed by the World Bank's Europe and Central Asia Region. The objective of the Working Paper is to contribute to the international dialog on strengthening financial consumer protection and financial literacy in emerging markets.A financial consumer protection regime should meet three objectives. First, consumers should receive accurate, simple, comparable information of a financial service or product, before and after buying it. Second, consumers should have access to expedient, inexpensive and efficient mechanisms for dispute resolution with financial institutions. Third, consumers should be able to receive financial education when and how they want it. A common challenge among the nine countries is the need of an adequate institutional structure for financial consumer protection. However independent of the specific institutional structures, financial consumers should have one single agency where to submit complaints and inquiries. Financial institutions should be required to apply fair, non-coercive and reasonable practices when selling and advertising financial products and services to consumers. Personal data should also be carefully protected.

Bibliographic Details

Main Author:	Rutledge, Susan L.
Language:	English
Published:	2010-06-01
Subjects:	ABILITY OF CONSUMERS, ACCESS TO CREDIT, ACCURATE INFORMATION, ADULT FINANCIAL LITERACY, ANNUAL PERCENTAGE RATE, APR, ATM, ATM CARD, AUTOMATIC TELLER, BANK ACCOUNT, BANK ASSETS, BANK CREDIT, BANK LOANS, BANKRUPTCY, BANKS, BASIC FINANCIAL SERVICES, BEHAVIORAL ECONOMICS, BORROWER, BORROWING, BUYERS, CALCULATION, CHAMBERS OF COMMERCE, CHECKING ACCOUNTS, COLLATERAL, COLLECTION AGENCIES, COMMODITY, COMMUNITY AFFAIRS, COMPARISON SHOPPING, COMPOUND INTEREST, CONSUMER, CONSUMER BEHAVIOR, CONSUMER COMPLAINTS, CONSUMER CREDIT, CONSUMER CREDITS, CONSUMER DEBT, CONSUMER EDUCATION, CONSUMER FINANCE, CONSUMER INFORMATION, CONSUMER ISSUES, CONSUMER LOAN, CONSUMER LOANS, CONSUMER ORGANIZATIONS, CONSUMER PROTECTION, CONSUMER PROTECTION MEASURES, CONSUMERS, CONTRIBUTION, CONTRIBUTIONS, CREDIT CARD, CREDIT CARDS, CREDIT HISTORIES, CREDIT INSTITUTIONS, CREDIT PRODUCTS, CREDIT REPORTING, CREDIT SCORES, DEBIT CARDS, DEBT, DEBT COLLECTION, DEBT COLLECTORS, DEBT OBLIGATIONS, DEBTS, DECEPTIVE PRACTICES, DELINQUENCIES, DEPOSIT, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DISCLOSURE REQUIREMENTS, DISCOUNT RATE, EXCHANGE RATE, FAMILY MEMBER, FAMILY MEMBERS, FEDERAL DEPOSIT INSURANCE CORPORATION, FEDERAL RESERVE, FINANCES, FINANCIAL ADVICE, FINANCIAL CONSUMER, FINANCIAL CONSUMERS, FINANCIAL CRISIS, FINANCIAL EDUCATION, FINANCIAL EDUCATION FOR CONSUMERS, FINANCIAL EDUCATION PROGRAM, FINANCIAL EDUCATION PROGRAMS, FINANCIAL FRAUD, FINANCIAL FUTURE, FINANCIAL HEALTH, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL INVESTMENTS, FINANCIAL ISSUES, FINANCIAL LITERACY, FINANCIAL LITERACY INITIATIVES, FINANCIAL LITERACY PROGRAMS, FINANCIAL LITERACY SURVEY, FINANCIAL LITERACY SURVEYS, FINANCIAL MARKETS, FINANCIAL NEEDS, FINANCIAL PRODUCT, FINANCIAL PRODUCTS, FINANCIAL REGULATION, FINANCIAL REGULATIONS, FINANCIAL REGULATOR, FINANCIAL REGULATORS, FINANCIAL RISKS, FINANCIAL SECTOR, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SECTORS, FINANCIAL SECURITY, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SERVICES AUTHORITY, FINANCIAL SITUATION, FINANCIAL STABILITY, FINANCIAL STATUS, FINANCIAL SYSTEM, FOREIGN CURRENCIES, FOREIGN CURRENCY, FORMAL FINANCIAL SECTOR, FUTURE INCOME, GENDER, HIGH-SCHOOL STUDENTS, HOME MORTGAGE, HOMEOWNERS, HOUSEHOLD DEBT, HOUSEHOLD LENDING, HOUSEHOLDS, INCOME, INFORMATION ON INVESTMENT, INFORMATION TECHNOLOGY, INFORMED CONSUMERS, INFORMED DECISIONS, INFORMED FINANCIAL DECISIONS, INSTITUTIONAL CAPACITY, INSURANCE, INSURANCE POLICIES, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INVESTING, INVESTMENT CLUBS, INVESTMENT PERFORMANCE, INVESTMENT PRODUCTS, LENDERS, LIABILITY, LIFE EVENTS, LIFE INSURANCE, LIFETIME, LOAN AMOUNT, LONG-TERM SAVINGS, LOW INCOME, LOW-INCOME, MARKET CONDITIONS, MARKET DEVELOPMENTS, MARKET ECONOMIES, MARKETING, MICROFINANCE, MICROFINANCE INSTITUTIONS, MONTHLY PAYMENTS, MORTGAGE, MORTGAGE DEBT, MORTGAGE LOAN, MORTGAGE LOANS, MORTGAGE MARKETS, MORTGAGE PRODUCTS, MORTGAGES, NATIONAL BANK, PAYMENT SERVICES, PAYMENTS SERVICES, PENALTY FEES, PENSION, PENSION FUNDS, PENSION ISSUES, PENSION PRODUCTS, PENSIONERS, PERSONAL FINANCE, PERSONAL FINANCIAL INFORMATION, PERSONAL FINANCIAL LITERACY, PERSONAL PREFERENCES, PREPAYMENT PENALTY, PRESENT VALUE, PRIVATE PENSION, PRIVATE PENSIONS, PROFESSIONAL ASSOCIATION, PROFESSIONAL ASSOCIATIONS, PUBLIC CONFIDENCE, PUBLIC DEBT, PURCHASES, RAPID DEVELOPMENT, RAPID GROWTH, RECEIPT, REMITTANCES, REPAYMENT, REPAYMENTS, RESIDENTIAL MORTGAGE, RESPONSIBILITIES, RETAIL FINANCIAL SERVICES, RETIREMENT, SAFETY NETS, SALE, SALES, SALES TACTICS, SAVINGS, SCAMS, SECURITIES, SENIOR, SENIORS, STOCK MARKET, SURVEYS OF CONSUMER, TYPES OF CONSUMER, UNION, UTILITY BILLS, VALUABLE, VALUE OF MONEY, VALUE OF SAVINGS, WAGES,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100603082853 https://hdl.handle.net/10986/3816
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