Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno has again called on banks and other financial sector players to back up BSP’s push for the quick passage of the proposed Financial Consumer Protection Act (FCPA), which seeks to ensure “transparency, disclosure, responsible pricing and fair treatment” for Filipino consumers.
“Consumer welfare is a continuing agenda of the BSP (and) we enjoin financial institutions, bank organizations, and relevant partners and stakeholders to push consumer protection initiatives forward as the responsibility is too great for any entity to take on singly,” said Diokno on Monday.
Diokno reiterated that BSP is strongly committed in promoting financial stability and consumer protection by advocating the passage of the FCPA through active participation in committee hearings and coordination with the Senate of the Philippines.
“This legislative initiative has far-reaching benefits to consumers especially amid the rise in digital transactions,” said Diokno. “The proposed reforms in the financial sector will enhance the authority of regulators and ensure that appropriate mechanisms are in place to safeguard the interest of financial consumers,” he said.
Under the proposed FCPA, the financial regulators such as the BSP and the Securities and Exchange Commission will have the power to issue a cease-and-desist order without the need for prior hearing in unfair collection practices deemed as threats or harassment against a financial consumer.
The BSP said consumers will no longer need to go to court if their claim involves a return of money from a financial service provider. This translates to a prompt and more efficient process when consumers seek reparation in financial transactions, as warranted by financial regulators.
The BSP also said that in cases of undispensed ATM 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, a consumer may go through the adjudication process and file a claim directly with the BSP,” said the BSP.
The FCPA will also allow regulators to go after financial service providers that are responsible for credit card fraud in online shopping. These violators will have sanctions, fines, suspension, or penalties.
Diokno has said before that the BSP and other financial regulators will have the extra authority under FCPA to craft rules, to have stricter market surveillance and examination, and market monitoring.
House Bill No. 6768 or “An Act Affording More Protection to Consumers of Financial Products and Services” has already been approved on third and final reading last June 2, while Senate Bill Nos. 60, 534, 1329, 1335, 1739 and 2287 have been filed and referred to the Senate Committee on Banks, Financial Institutions and Currencies.