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World Consumer Rights Day WCRD (WCRD) 2010 is nearly upon us! Following the recent focus on Africa, Consumers International (CI) is now putting the spotlight on financial services in Asia in Our money, our rights: the evolution of financial services in Asia
Despite the many innovations in financial services to have emerged from this part of the world, many poor yet 'bankable' consumers in Asian countries still go without access. In the last of a series of examinations into financial services provision to consumers across the world, this briefing explores the issues, both current and future, around achieving universal access in Asia. Download the pdf for more.
Just like their counterparts around the world, CI member organisations across the Asia-Pacific region will be taking action to highlight WCRD 2010. Here is a selection of the activities being planned:
- Consumer Federation Tamilnadu (CONFET) held a one-day event around the theme of 'Our money, our rights'. Various representatives of the Tamil Nadu State Government were were among the 500 participants. The event also included children from various schools, carrying placards displaying the WCRD slogan. A public rally also took place.
- The Network for Consumer Protection in Pakistan is organising a seminar in collaboration with the Sustainable Development Policy Institute (SDPI). An advisor to the Minister of Finance will speak about consumer protection. The network are also preparing an op-ed piece for the Daily Dawn media group.
- Hong Kong Consumer Council (HKCC), China will be publishing a survey on banking services, with an emphasis on young consumers. Expert advice on personal financial management, also aimed at young people, will be published in the Council's CHOICE magazine. A press conference will also be held on 15 March 2010.
- Consumers Association of India (CAI) will hold a public meeting around the theme of financial security for elderly consumers. They will be highlighting a recent commitment from the National Housing Bank, a subsidiary of the Government's Reserve Bank of India, to provide loans to retired servicemen of the Indian Defence Forces to help them purchase housing.
- Macau Consumer Council (CCM), China, will be publishing the results of a comprehensive survey on fees and charges of retail banks in their monthly magazine. CCM will also release a 'checklist' on insurance for consumers.
- Consumer Association of Singapore (CASE) will sign a Memorandum of Understanding (MOU) with CCM (see above). Under the MOU, both organisations will mutally recognise the accreditations they provide to businesses that operate in Singapore and Macau. The organisations will also cooperate on cross-border consumer dispute resolution and product testing. CASE are also organising a crossword puzzle competition to raise consumer awareness of consumer protection issues.
- Consumer Council of Fiji (CCF) intends to bring together representatives from the banking industry, regulatory authorities, consumers and other stakeholders to discuss how to ensure fairer banking services for consumers in Fiji.
The consumer movement across Latin America will be mobilising on and around 15 March 2010 to highlight World Consumer Rights Day (WCRD) 2010. Here is a selection of the rich variety of activities that will be taking place across the region:- Organización de Consumidores y Usuarios de Chile (ODECU), Chile, will be surveying consumers on their experiences of using financial services, and undertaking financial education activities on and around 15 March in different regions of Chile. ODECU are also officially launching a new and improved version of www.misdeudas.cl, a website dedicated to providing debt counselling to consumers. They will also launch a new 'Financial Education Guide', produced as part of a project with other organisations in the region and ADICAE, a CI member organisation in Spain.
- Comité de Defensa de los Derechos del Consumidor (AIS-CODEDCO), Bolivia, held a conference in February on the 'Situation of consumers of financial services and banks in Bolivia', in collaboration with the Vice-Ministry for Consumer Protection, Authority for Supervision of the Finance System, Community for Human Rights in Bolivia and the Ombudsman of Bolivia.
The Israel Consumer Council (ICC) is campaigning to advance legislation that will prevent banks from charging fees for basic services on current accounts.
A bill which was submitted to the Israeli Knesset signified the culmination of a public campaign which won widespread support - 700,000 letters were sent urging the Supervisor of Banks to adopt ICC's proposal.
For more see http://tinyurl.com/ylguzup
CODEDCO, Bolivia recently held a conference entitled: ‘The situation of consumers and users of financial and banking services in Bolivia’. The event was attended by 150 participants, including experts from the Spanish consumer organisation ADICAE, as well as other representatives from civil society, government and industry.
Bolivia is the only country in the region that still lacks basic consumer protection legislation. In an economy with high rates of informal employment and unemployment, many have little choice but to get heavily into debt simply to make ends meet. An estimated 13,000 families are believed to be in a 'desperate' financial situation.
The conference debated the abusive terms in credit contracts that Bolivian consumers must routinely contend with, and raised the issue of bias shown by financial institutions against poor families.
CODEDCO has called on the relevant authorities to guarantee independent financial advice to consumers, and for consumer representation on tripartite dispute resolution panels in relation to debt. The organisation is also calling for the appointment of a financial ombudsman.
In a promising move, the financial regulatory authority has promised to put pressure on banks to cut down waiting times, in particular for the disabled and the elderly, to a maximum of 30 minutes.
For more on the work AIS-CODEDCO visit their website at www.aisbolivia.org
Tanzania Consumer Advocacy Society (TCAS) recently released a paper entitled: The Quality of Financial Services: a Critique From Consumers' Perspective.
According to Daimon Mwakyembe, TCAS chairman, financial institutions in Tanzania 'have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as "unbankable".'
TCAS also believe that recent reforms of the financial sector have not taken consumer protection into account.
For more see http://tinyurl.com/yzey2je.
CI member CLCV has just published their annual retail banking survey for 2010, putting an impressive 140 French banks under scrutiny. The study compares 57 types of financial product or service, covering over 15,000 different fees and charges.
A key finding is that in mainland France the same service can be up to 220% more expensive depending on the provider. 'Bundled' or 'packaged' products were also found to be more expensive for consumers than purchasing the same products and service individually on a 'pay as you go' basis. This despite banks promoting 'packages' as better value for money. For more see: http://tinyurl.com/yepfnle
The cost of personal loans in Portugal has risen dramatically since 2004, with fees increasing by over 70% in some cases. This is according to a recent study by DECO Proteste.
Consumers also face a confusing myriad of different 'entrance', 'opening', 'administration' and 'application' fees.
DECO believe that all banks in Portugal should use standard terminology to avoid consumers being 'deceived by jargon'.
'Even with lower interest rates, opening fees are more expensive. The Bank of Portugal and the Department of Consumer Affairs should impose a single opening fee with the same terminology across all banks.'
For more see http://tinyurl.com/ybqm3r7
