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LEGAL AND SUPERVISORYFRAMEWORK FORCONSUMER PROTECTION

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Consumer Protection

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An individual who buys products orservices fo r personal use and not for

manufacture or resale

Consumer

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The Role of Islam in Protection ofConsumers

The Holy Quran"The almighty says... O you who believe! Fulfill

your contracts" .(5:1)

"Give full measure when ye measure, and weigh with a balance that is straight; that isthe most fitting and the most advantageous inthe final determination." (17:35)

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History

2 nd world warPresident John F Kennedy (15 March 1962)United Nations Economic and SocialCouncil (1981)United Nations General Assembly (9 April1985)

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Why to protect a consumer?

Satisfaction of basic needs Safety Information

ChoiceBe heardRedress

Consumer Education A healthy environment

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United States of America

Consumer Protection Legislation/Legal Framework Commission Act (1914)

Consumer Credit Protection Act (1968)

Consumer Affairs Act (1971)

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Institutional Arrangement/Regulatory Framework

Office of Consumer Protection

Consumer Financial Protection Agency

Department of Commerce and Consumer affairs(DCCA)

General Services Federal bureau of consumer protection

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INDIA

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Consumer protection legislation/Frame work

India

Consumer Protection Act (1986)

Banking Ombudsman Scheme (2006)

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Institutional arrangements/RegulatoryFramework

Customer Service department

Banking Ombudsman section

Initiatives taken by Reserve bank of India

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PAKISTAN

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Legal Framework

1. Pakistani perspective

2. Institutional Arrangement comprises

o Banks own consumer complaint cells

o Banking Mohtasib

o Consumer Protection Department

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Consumer Protection Legislation

Islamabad consumer protection Act (1995)

KPK consumer protection Act (1997)

Baluchistan consumer protection Act (2003)

Punjab consumer protection Act (2005)

Sindh government consumer protection law isunder process

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State bank of Pakistan Regulations

Basic Banking Account (2005)Fair Debt collections Guidelines (2008)Collection of utility bill (1997)Pension disbursement through Banks (2010)

Service charges on PLS Deposits (2011)Suo-moto (2006)Foreign Exchange Deposits (2005)Dishonoring of Cheques and Stop Paymentinstructions (2005)

Recovery penalty amount imposed by SBP fromcustomers (2006)Minimum rate of return on Savings/PLS Deposits(2008)

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Institutional Arrangements/Regulatory

Framework

The consumer Eye Pakistan (TCEP)

Credit information bureau (CIB)

Banking Mohtasib Pakistan

Consumer protection department

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Laws

USA INDIA PAKISTAN

LAWS

Federal Trade

Commission Act

(1914)

Fair Trading Act

(1987)

Consumer Affairs Act(1971)

Consumer Credit

Protection Act (1968)

Competition and

Consumer Act (2010)

Wall Street Reform

and Consumer

Protection Act (Dodd-

Frank)

Consumer Protection

Act (1986)

Banking Ombudsman

Scheme (2006)

In Pakistan there is no

National Assembly law

for consumer protection.

Provincial Assemblies

like Islamabad Act(1995) KPK Act (1997),

Punjab Act (2005) ,

Baluchistan Act(2003)

SBP is working on

Consumer protections

laws.

Federal Ombudsman

Institutional Reforms

Act, 2013

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Role of oversight bodies

Role of oversight bodies

USA INDIA PAKISTAN Office of theConsumerProtection.

The United StateConsumerProtection Bureau(CFPU).

Customer ServiceDepartmentBanking Ombudsman

Scheme (2006).

The consumer Eye(TCEP)The Credit

Information Bureau(CIB)The Banking Mohtasib

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Disclosure and Transparency USA INDIA PAKISTAN

The Board ofFederal ReserveSystem

Authorized AgentReports

Service providernot only written but also guide

verballyRecovery agentengaged by bankdraft guide and

branch servicecommittee.

Time to time guideline to financialservices provider andauthorized agent.

It can take actionagainst them whose donot comply on theguideline of SBP.CPD of SBP aware themost importantdocuments whencontracting financialservices provider.

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Recommendation and conclusion

Federal legislation.Consumer rights commissions of Pakistan.Guideline and loan recovery procedure.

Consumer education and awareness.Focus on consumer rights .Protection of Consumer from hazards.

SBP should develop a strong consumerprotection policy.

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THANK YOU