Publication date: 03.06.2024
Legal Aspects of Consumer Protection in the Financial Services Sector
Introduction
Consumer protection in financial services is an important aspect of ensuring fairness and transparency in the financial market. Consumers of financial services have the right to adequate protection of their interests, transparent information and fair treatment. In this article, we will review the key legal aspects of consumer protection in the financial services sector, including national legislation, international standards and protection mechanisms.
National Legislation
Laws of Ukraine
Ukraine has several laws governing consumer protection in the financial services sector:
The Law of Ukraine "On Protection of Consumer Rights": This law defines the basic rights of consumers, including the right to receive complete and accurate information about goods and services, the right to product safety, and the right to compensation for damages.
The Law of Ukraine "On Consumer Lending": Establishes rules for the provision and use of consumer loans, requiring financial institutions to provide full information on the terms of lending.
The Law of Ukraine "On Financial Services and State Regulation of Financial Services Markets": Regulates the activities of financial institutions and establishes requirements for their transparency and reporting.
Consumer Rights
Ukrainian legislation provides financial services consumers with the following rights:
The right to information: Consumers have the right to receive complete, accurate and understandable information about financial services, including contractual terms, fees, risks and other important aspects.
The right to security: Financial products and services must be safe for consumers, and financial institutions are required to take measures to protect customer funds.
The right to fairness: Consumers have the right to be treated fairly by financial institutions, including non-discrimination and fair contractual terms.
The right to compensation for damages: In case of violation of consumer rights, they have the right to compensation for damages caused by illegal actions of financial institutions. You may be interested in the following articles: legal advice, legal advice, analysis of documents, legal analysis of the situation, written advice, verification of documents by a lawyer, lawyers documents, online legal assistance, online lawyer, legal opinion, legal opinion of a lawyer, lawyer online.
International Standards
Principles of the G20 and the Organization for Economic Cooperation and Development (OECD)
International organizations, such as the G20 and the OECD, have developed principles for consumer protection in financial services:
G20 Principles on Financial Services Consumer Protection: Includes consumer protection, transparency, fairness, financial institution accountability, financial education and financial literacy.
OECD recommendations on consumer protection in financial services: Include access to information, transparency, fair contractual terms, dispute resolution mechanisms, and financial education.
Protection Mechanisms
State Authorities
Countries, including Ukraine, have government agencies that regulate financial institutions and protect consumer rights:
National Bank of Ukraine (NBU): Regulates the activities of banks and financial institutions, ensuring compliance with consumer protection legislation.
State Service of Ukraine for Consumer Protection: Supervises compliance with consumer protection legislation, including in the financial services sector;
