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Consumer protection and financial literacy : lessons from nine country studies

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  • Rutledge, Susan L.

Abstract

The 2008 global financial crisis has emphasized the need for adequate consumer protection and financial literacy for long-term stability of the financial sector. This Working Paper aims to summarize key lessons from reviews of consumer protection and financial literacy in the nine middle-income countries of Europe and Central Asia: Azerbaijan, Bulgaria, Croatia, the Czech Republic, Latvia, Lithuania, Romania, the Russian Federation and Slovakia. All the country assessments used a systematic common approach, based on a set of Good Practices for Consumer Protection and Financial Literacy developed by the World Bank's Europe and Central Asia Region. A financial consumer protection regime should meet three objectives. First, consumers should receive accurate, simple, comparable information of a financial service or product, before and after buying it. Second, consumers should have access to expedient, inexpensive and efficient mechanisms for dispute resolution with financial institutions. Third, consumers should be able to receive financial education when and how they want it. A common challenge among the nine countries is the need of an adequate institutional structure for financial consumer protection. Regardless of the specific institutional structures, financial consumers should have one single agency where to submit complaints and inquiries. Financial institutions should be required to apply fair, non-coercive and reasonable practices when selling and advertising financial products and services to consumers. Personal data should also be carefully protected.

Suggested Citation

  • Rutledge, Susan L., 2010. "Consumer protection and financial literacy : lessons from nine country studies," Policy Research Working Paper Series 5326, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5326
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    File URL: http://documents.worldbank.org/curated/en/676251468233092150/pdf/WPS5326.pdf
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    Cited by:

    1. Raccanello, Kristiano & Romero-García, David Arturo, 2012. "Prácticas predatorias y crédito al consumidor," eseconomía, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(36), pages 7-43, cuarto tr.
    2. Angela Romagnoli & Maurizio Trifilidis, 2015. "Does Financial Education at School work? Evidence from Italy," Rivista Bancaria - Minerva Bancaria, Istituto di Cultura Bancaria Francesco Parrillo, issue 1, January -.
    3. Gaganis, Chrysovalantis & Galariotis, Emilios & Pasiouras, Fotios & Staikouras, Christos, 2020. "Bank profit efficiency and financial consumer protection policies," Journal of Business Research, Elsevier, vol. 118(C), pages 98-116.
    4. Thorsten Beck & Samuel Munzele Maimbo & Issa Faye & Thouraya Triki, 2011. "Financing Africa : Through the Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 2355.
    5. Marimuthu SELVAKUMAR & Veluchamy SATHYALAKSHMI, 2015. "Financial consumer protection and customer satisfaction. A relationship study by using factor analysis and discriminant analysis," EuroEconomica, Danubius University of Galati, issue 2(34), pages 71-94, November.
    6. Morgan, Peter J. & Zhang, Yan (ed.), 2019. "Financial Inclusion, Regulation, Literacy, and Education in Central Asia and South Caucasus," ADBI Books, Asian Development Bank Institute, number 3, Décembre.
    7. Singh, Ardhendu & Venkataramani, Bhama, 2012. "Financial Education: Institutes of Higher Education as delivery channels," MPRA Paper 43336, University Library of Munich, Germany.
    8. Reurink, Arjan, 2016. "Financial fraud: A literature review," MPIfG Discussion Paper 16/5, Max Planck Institute for the Study of Societies.
    9. Gordon L. Clark, 2014. "Roepke Lecture in Economic Geography—Financial Literacy in Context," Economic Geography, Clark University, vol. 90(1), pages 1-23, January.
    10. Francisco Jesús Gálvez-Sánchez & Juan Lara-Rubio & Antonio José Verdú-Jóver & Víctor Meseguer-Sánchez, 2021. "Research Advances on Financial Inclusion: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    11. Fotios Pasiouras, 2018. "Financial Consumer Protection and the Cost of Financial Intermediation: Evidence from Advanced and Developing Economies," Management Science, INFORMS, vol. 64(2), pages 902-924, February.
    12. Iulian Viorel Brasoveanu & Laura Obreja Brasoveanu & Simona Mascu, 2014. "Comparative Analysis of the Consumer Protection, Considering the Globalisation and Technological Changes, within Member States of the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 517-517, May.
    13. Ardic, Oya Pinar & Ibrahim, Joyce A. & Mylenko, Nataliya, 2011. "Consumer protection laws and regulations in deposit and loan services : a cross-country analysis with a new data set," Policy Research Working Paper Series 5536, The World Bank.
    14. Habib Ahmed & Ili Rahilah Ibrahim, 2018. "Financial Consumer Protection Regime in Malaysia: Assessment of the Legal and Regulatory Framework," Journal of Consumer Policy, Springer, vol. 41(2), pages 159-175, June.

    More about this item

    Keywords

    Bankruptcy and Resolution of Financial Distress; Debt Markets; Access to Finance; Financial Literacy; Emerging Markets;
    All these keywords.

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