Why Consumer Protection?
There is a number of factors, which motivate microfinance industry to raise a discussion about Consumer protection. The growing concern about high interest rates charged by some microfinance programs worldwide was even strengthened by crisis related to over-indebtedness of Consumers in several Consumers. It has been accompanied by the deep concern of the part of financial institutions to stay true to the social promise of microfinance to positively influence its Consumers. Additionally, competition, desire to achieve profitability, and internal incentives has all played a role in pushing financial institutions into practices that do not coincide with pro-consumer ideals.
Consumer protection assessment
MFC provides support to MFIs in improving their Consumer protection systems trough self-assessment methodology. The ultimate goal of the customer protection self-assessment of a financial institution is to recognize good practices in customer protection and to address the existing gaps in alignment of internal systems to the six principles.
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