Paper
ACCION Network Pro-Consumer Pledge
ACCION: Towards pro-consumer microfinance
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This document discusses the adoption of the pro-consumer pledge by the ACCION Network, a network of leading microfinance institutions (MFIs). The paper states that the pledge:
- Sets out the principles of pro-consumer microfinance;
- Defines principles to ensure that financial services benefit customers, while also ensuring that the legitimate needs of MFIs are met.
The paper explains the following principles of the pledge:
- Quality of service;
- Transparent pricing;
- Fair pricing;
- Avoiding over indebtedness;
- Appropriate debt collection practices;
- Privacy of customer information;
- Ethical behavior of staff;
- Feedback mechanisms;
- Integrating pro-consumer policies into operations.
It states that by adopting the pledge, members of the network agree to:
- Apply these principles in their own organizations;
- Promote the application of these principles in MFIs in their countries;
- Engage with regulatory authorities to promote effective, yet non-burdensome policies or rules;
- Raise awareness in the global microfinance industry about the importance of pro-consumer principles.
The paper concludes that in some cases, collective action by the industry or by regulatory authorities may be required to enforce application of these principles.
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