Module 10 - Financial Consumer Protection Flashcards
enumerate financial consumers
- corporations
- individual consumers
- SME - small and medium sized enterprises
- government entities
- not for profit organizations
enumerate financial service providers
- banks
- quasi banks
- e-money issuers
- operators of payment systems
- pawnshops
- non stock savings and loan association
enumerate financial products and services provided by BSFIs
- loan and credit facilities
- deposit
- investment products
- remittance services
- payment services
- insurance products
- foreign exchange services
- trust and fiduciary services
an act affording more protection to consumers of financial products and services
R.A 11765 Financial Consumer Protection Act
Financial Consumer Protection Act was enacted in
May 06, 2022
includes the governance structure, policies, processes, measurement and control procedures to ensure that consumer protection risks are identified, measured, monitored and mitigated
CPRMS - Consumer Protection Management System
Obligations of BSFIs
(1) Establish CPRMS
(2) Consumer Protection Oversight
Consumer Protection oversight
(1) Board and Senior management
(2) Compliance program
(3) Policies and procedures
(4) Internal audit function
(5) Training
Consumer protection standards of conduct
(1) Disclosure and transparency
(2) Protection of client information
(3) Fair treatment
(4) Effective recourse mechanism
(5) Financial education and awareness
Appropriate product design and responsible pricing
(1) Cooling off period
(2) Prepayment of loans
a period of time that must pass before someone can do something or before an agreement becomes final.
cooling off period
a borrower, may at any time prior to the agreed maturity date, prepay a loan or other credit transactions in whole or part.
prepayment of loans
Power of finance regulators of BSP
(1) rulemaking
(2) market conduct regulation and supervision
(3) consumer assistance mechanism
(4) sanctions and penalties
Rights of consumers
(1) right to equitable and fair treatment
(2) right to timely handling and redress complaints
(3) right to protection of consumer assets against fraud and misuse
(4) right to data privacy and protection
(5) right to disclosure and transparency of financial products and services.
Scams and frauds
(1) phishing
(2) vishing
(3) smishing
(4) spoofing
(5) quishing
