Financial Consumer Rights and Responsibilities

The financial landscape comprises many financial services and products which herald complexity in the environment. The financial landscape complexity is compounded by the prevalence of financial technology and digital financial products and services. Regardless of this complexity, consumers continue to enjoy the protection rendered through legal and regulatory regime, and the regulatory policy and procedural guidelines. In this context, consumers are accorded basic rights which are balanced with responsibilities.

The Financial Consumer Protection Act No. 7 of 2022, provide for the following fundamental consumer rights:-

1. The consumers should be provided with the key fact statement which summarizes the major terms of the financial product or service prior to acquisition. The consumer has the responsibility to ensure understanding of the key fact statement prior to signing the related contractual obligation.
2. The consumer has the right to be provided with the material information related to the products or services in a clear, fair and legible, plain and intelligible language that can be easy to decipher. It remains the consumer’s responsibility to ensure understanding prior to acquisition.
3. The consumer has the right to receive an explanation of the contract from the financial service provider. It is the consumer responsibility to seek explanation in the event that there are unclear provisions in the contract relating to the service or product.
4. The financial consumer shall have the right to information on bundled or tied product package prior to acquisition.
5. The consumer should be adequately informed of the product/service cost or yield and the inclusive fees at any stage of the product or service lifecycle.
6. A consumer shall have the right to cancel a contract for a financial product or service within five working days after a date in which an agreement was entered into by both parties. The service provider shall disclose the cooling off right to the consumer in the key fact statement.
7. A consumer shall have the right not to be charged interest, fees or charged unless they have been disclosed and agreed in contract.
8. A consumer shall have the right to be issued periodic statement that contains sufficient information on a financial product or service upon request.
9. A consumer shall have the right to be informed on change of terms and condition within thirty day before the change take effect.
10. The consumer has to be notified of the default and his/her rights before enforcement proceedings on credit liability.
11. A consumer shall not be subjected to discrimination on the basis of gender, marital status, ethnicity, sexual orientation religion, political belief or any form of disability.
12. A consumer shall have the right to make advance payment on the product or service on an outstanding balance of credit account, at any time during the life of the product or service.
13. The consumer shall be given the right to raise a complaint with the service provider. This should be managed adequately through independent internal mechanism to ensure impartial resolution.

It is the responsibility of the consumer to understand all contract terms and conditions. A consumer should ensure that he/she meets contract terms and condition, make payments on or before due dates to avoid arrears and penalties.