SEEP: Programs and Working Groups: Action Research: Working Groups: Consumer Protection

Pro-Client Working Group (PCWG)

Consumer Protection Working Group (CPWG)

Established: 2001

Goal

The Consumer Protection Working Group (CPWG) seeks to increase the transparency of microfinance institution (MFI) policies regarding consumer protection.

Objectives

Increase the number of institutions with progressive consumer protection practices in the MFI industry around the world.
Explore links with Business Development Services (BDS) on consumer protection issues.
Promote consumer orientation among private voluntary organizations.

Current Activities

Promoting consumer protection initiatives and adoption of a Code of Practice for Consumer Protection by conducting a series of workshops.
Developing a Code of Practice Facilitator’s Guide for use by institutions wishing to develop their own code of practice for consumer protection.
Working with SEEP to develop a pro-client ethical statement.
Working with SEEP members to adopt pro-client policies and codes.

Accomplishments

· In October 2004, SEEP members endorsed pro-client principles at SEEP's Annual General Meeting.

· Facilitated development of a pro-client pledge for the Microfinance Network, which was subsequently adopted by 29 leading MFIs.

· SEEP members ACCION International and Freedom from Hunger adopted pro-client initiatives, resulting in affiliates developing their own codes and policies to protect customers.

· In April 2003, the working group hosted a workshop for the microenterprise development community on identifying consumer issues in microfinance. Panelists presented the differing roles of consumer education, government regulation, and self-regulation in addressing consumer protection issues.

· Working Group members have promoted consumer protection by participating in workshops and meetings of MFIs, microfinance associations, and BDS providers, including the Microfinance Network, Microfinance Center for the NIS, AMFI Bosnia and Herzegovina, AMFIU Uganda, Prodesarrollo Mexico, Redcamif Central America, and PT Ukabima Indonesia.

· In Bosnia, MFI Partner has adopted a Code of Practice for Consumer Protection.

· In Uganda, AMFIU, is spearheading an effort to increase consumer education, train government financial outreach workers and develop an ombudsman.

Publications

Trust Through Transparency: Applicability of Consumer Protection Self-Regulation to Microfinance. This technical note provides the rationale for microfinance industry-sponsored self-regulation.

The Consumer Protection Code of Practice Template and Discussion Guide. This publication lists the main elements of a consumer protection code of practice and guides users through some basic questions for discussion. Working group members translated this document into Spanish and French, Russian and Bosnian.

Recently Added Documents

Branch Management Training for MFIs: Developing Staff Management Skills, PowerPoints

These PowerPoints accompany the Branch Management Training for MFIs: Developing Staff Management Skills Facilitator Manual.

Promoting Quality Bookkeeping in Self-Help Groups: The Mahakalasm Management Information System

This learning paper explains a solution created by Covenant Centre for Development (CCD) and ekgaon technologies regarding how to capture information from an extremely decentralized network of savers and borrowers in self-help groups and centralize it in order to create accurate, timely, consolidated financial reports.

Practitioner Learning Program: Annotated Bibliography of Learning Products

This is a working annotated bibliography of the 40 publications produced by the SEEP Practitioner Learning Program in BDS Market Assessment, Client Assessment, Poverty Assessment, Improving the Efficiency of MFIs, and Strategic Alliances for Financial Services and Market Linkages in Rural Areas.

Progress Note 14: Consumer Protection Principles in Practice: A Framework for Developing and Implementing a Pro-Client Approach

In 2004, SEEP members adopted the Pro-Client Principles, recognizing
that a proactive approach to consumer protection will encourage
MFIs to improve their practices before donors and regulators force their standards on this still-evolving industry. This Progress Note presents the accumulated experiences of SEEP members over the past two years as they implement their own pro-client policies and codes. A short description of recent events where MFIs were negatively affected by allegations of consumer abuse illustrates the importance of developing consumer protection policies for the entire industry. It is intended to be used as a framework for developing and implementing pro-client principles by MFIs, associations and networks.

Trust Through Transparency

ДОВЕРИЕ КАК РЕЗУЛЬТАТ ОТКРЫТОСТИ Использование самоконтроля защиты потребителя в микрофинансировании Trust Through Transparency in Russian

This publication is available as a free PDF download. Hard copies of this book are available for purchase in quantity orders only, subject to availability. Please contact SEEP for more information.