BSP bats for financial consumer protection bill

The Bangko Sentral ng Pilipinas (BSP) on Thursday emphasized the importance of the proposed Financial Consumer Protection Act (FCPA), which its chief says offers significant benefits to Filipinos amid the surge in electronic transactions in the country.

During a virtual briefing, BSP Governor Benjamin Diokno told reporters the measure covered all financial products and services offered by any financial institution. These include savings; credit; insurance; products offered by health maintenance organizations; investments; remittance; and digital financial products or services.

The FCPA will put in place a comprehensive financial consumer protection regime wherein financial inclusion, financial education, good governance and effective supervision come into play, he said.

“It underscores that consumer protection is a shared responsibility among regulators, consumers and other stakeholders,” the central bank chief added.

Consumers are also seen to benefit from the measure as regulators may issue a cease-and-desist order without the need for a hearing if an act amounts to fraud or causes serious harm.

“This may be applicable to unfair collection practices amounting to threats or harassment against a financial consumer,” Diokno explained.

Financial consumers also stand to benefit from the adjudication process as they no longer need to go to court if their claim is solely the return of money from a financial service provider.

The regulator may already adjudicate and award the amount, as warranted.

“For example, in cases of undispensed ATM (automated teller machine) withdrawals, both the depository bank and bank operating the ATM may be liable to cardholders. However, when neither is willing to settle a customer’s claim, the consumer may go through the adjudication process and file a claim directly with the BSP,” Diokno said.

The proposed law also imposes penalties to these providers if found responsible for credit card fraud in online shopping.

Diokno said a consolidated version of the bill in the House of Representatives, called the “Financial Products and Services Consumer Protection Act,” was passed on the third reading on June 2.

Meanwhile, the Engrossed Bill (HB 6768) was transmitted for the deliberation by the Senate Committee on Banks, Financial Institutions and Currencies on June 3.