Publication date: 11.07.2024
Consumer protection in the banking sector
The banking services sector is extremely important for the functioning of the economy and financial stability. Consumers of banking services have the right to receive high-quality and safe financial products, protection of their interests and fair treatment by banks. In this article, we will consider the main aspects of consumer protection in the banking sector, the regulatory framework, consumer rights, protection mechanisms and the procedure for appealing against violations.
Legal and regulatory framework
Consumer protection in the banking sector in Ukraine is regulated by several key legal acts:
TheLaw of Ukraine "On Protection of Consumer Rights":
- Defines the legal framework for consumer protection, establishes consumer rights, obligations of banks and the procedure for handling consumer complaints.
Law of Ukraine On Banks and Banking Activities:
- Regulates the activities of banks, establishes requirements for the organisation and conduct of banking operations, rights and obligations of banks and their clients.
Law of Ukraine On Financial Services and State Regulation of Financial Services Markets:
- Defines the legal framework for the provision of financial services, including banking services, establishes requirements for financial institutions, the procedure for licensing and control over their activities.
Civil Code of Ukraine (CCU):
- Regulates contractual relations between banks and their clients, defines the rights and obligations of the parties, and mechanisms for consumer protection.
Code of Ukraine on Administrative Offences (CUAO):
- Provides for administrative liability for violations of the requirements of the banking services legislation, non-compliance with standards and rules of activity in the financial markets.
Criminal Code of Ukraine (CCU):
- Establishes criminal liability for offences in the banking sector, including fraud, misrepresentation of clients and other offences.
National Bank of Ukraine (NBU):
- The central bank that supervises and controls the activities of banks, establishes regulations, regulates banking activities and imposes sanctions for violations of the law.
Fundamental rights of consumers of banking services
The basic rights of consumers of banking services, as defined by Ukrainian law, include:
Theright to accurate information:
- Consumers have the right to receive accurate, complete and understandable information about banking services, contractual terms, tariffs, fees and risks.
Theright to security:
- Consumers have the right to safe financial products and services that do not pose a threat to their financial situation and do not violate their rights.
Right to choice:
- Consumers have the right to choose their banking services freely, without pressure or coercion from banks.
Right to protection from unfair advertising:
- Consumers have the right to be protected from advertising that contains false or incomplete information, is misleading or violates ethical standards.
Theright to compensation for damages:
- In case of material or moral damage caused by improper provision of banking services, consumers have the right to compensation for damages.
Right to apply to courts and other consumer protection authorities:
- Consumers have the right to apply to courts, consumer protection authorities and human rights organisations to protect their rights.
Mechanisms for consumer protection
Ukrainian law provides for several mechanisms for consumer protection in the area of banking services:
Appeal to the bank:
- In case of violations of their rights, consumers have the right to apply directly to the bank with a request to eliminate violations, clarify the terms of the agreement, provide additional information or compensate for losses.
Appeal to the National Bank of Ukraine (NBU):
- Consumers may file a complaint with the NBU, which supervises banks, reviews complaints and takes enforcement action in the event of violations.
Judicialprotection:
- Consumers have the right to file lawsuits to protect their rights, including claims for damages, compensation for non-pecuniary damage, and an obligation of the bank to remedy the violation.
Contacting theState Service of Ukraine for Consumer Protection:
- Consumers can apply to this authority to review complaints and conduct inspections of banks' activities in relation to consumer rights.
Pre-trial dispute resolution:
- The law provides for the possibility of pre-trial settlement of disputes between consumers and banks, including mediation, arbitration and other forms of alternative dispute resolution.
Recourseto human rights organisations:
- Consumers can turn to human rights organisations and lawyers to protect their rights and interests.
Procedure for appealing against violations of consumer rights
In case of violation of consumer rights in the field of banking services, consumers have the right to appeal against such violations in accordance with the established procedure:
Appealto the bank:
- The first step is to contact the bank with a request to eliminate the violation. The request may be submitted in writing, specifying the circumstances of the violation, the consumer's requirements and evidence (contracts, account statements, correspondence, etc.).
Filing acomplaint with the NBU:
- If the appeal to the bank is unsuccessful, the consumer may file a complaint with the NBU. The complaint must contain a detailed description of the violation, evidence and the consumer's demands.
Appeal to the court:
- If the complaint is not resolved, the consumer has the right to go to court. The court considers the claim, hears the parties, evaluates the evidence and makes a decision on the protection of consumer rights. The court may order the bank to remedy the violation, compensate for damages, compensate for non-pecuniary damage, etc. So, whether you need a lawyer's advice or a lawyer's advice, it doesn't matter. Legal marketplace "CONSULTANT" will help you solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written advice, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
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