Paper
Consumer Protection Principles in Practice: A Framework for Developing and Implementing a Pro-Client Approach to Microfinance
Development and implementation of pro-client principles at SEEP
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12 pages
This Progress Note presents a framework for developing and implementing pro-client principles, building on the experiences of the SEEP Network members over the last two years.The note:
- States that pro-client principles, with a pro-active approach to consumer protection, will encourage microfinance institutions (MFIs) to improve their practices.
- Illustrates the importance of developing consumer protection policies in the microfinance industry with descriptions of events where allegations of consumer abuse negatively affected MFIs.
The brief presents information about:
- The history of SEEP work on consumer protection.
- The four stages of constructing a Consumer Protection Statement: the phases of commitment, development, approval and implementation.
- Areas that require attention when putting a code into practice: Revision of human resources policies, marketing, operations, monitoring.
- The diverse approaches to consumer protection of the following organizations: ACCION International, ACDI/VOCA, CARE, the Association of Microfinance Institutions in Uganda (AMFIU), the Microfinance Network (MFN), Freedom from Hunger and Bank Rakyat Indonesia (BRI).
- Translating a consumer protection statement into action.
- The experience of various MFIs in the area of consumer protection.
The brief lists the six pro-client principles of the SEEP network:
- Quality of service;
- Dignified treatment;
- Truthful and transparent information;
- Appropriate pricing;
- Protection from unethical and illegal practices;
- Privacy of client information.
It concludes by listing ten tips that would make MFIs more client-friendly.
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