THE Bangko Sentral ng Pilipinas (BSP) has released new guidelines, under which financial consumers may make their complaints known; resolve conflicting consumer and service-provider interests; rant against false advertisement; and, in certain cases, allow agitated consumers a cool-off period.
The guidelines come some six months after the policy-making Monetary Board adopted a system-wide consumer-protection framework.
In an 11-page circular, the central bank laid down the scope and effectivity of the consumer- protection framework that will measure and keep track of the local lenders’ ability to honor the rights of consumers.
The framework provides for an evaluation process of all BSP-supervised financial institutions (BSFIs) that will include periodic on-site assessment and continuing off-site evaluations.
Financial institutions are given a composite rating based on their ability to follow the measures set in the new framework. The ratings are on a scale of 1 to 4—with 1 being poor and requiring close supervisory attention and monitoring, while 4 being strong and without cause for supervisory concern.
The framework was also broken down into several functions, including the guidelines on the role and responsibility of the board and senior management; consumer-protection risk-management system; compliance program; policies and procedures; and internal-audit function as earlier stated by the central bank.
Among the other features of the entire framework that were not earlier discussed by the BSP were the details of the complaint mechanism; the provision on conflict of interest; giving consumers a “cool-off period”; and guidelines against false advertising.
Included in the framework are guidelines and procedures governing the consumer-assistance management system of BSFIs.