MANILA— The Bangko Sentral ng Pilipinas with the Securities and Exchange Commission, Insurance Commission, Cooperative Development Authority and other financial regulators are coordinating with the Senate of the Philippines for the immediate passage of the proposed Financial Consumer Protection Act, the central bank said Friday.
The measure would empower financial regulators to "take necessary actions" against entities that compromise consumer welfare as well as the ability to correct such acts," the BSP said in a statement.
Under the proposed law, financial regulators will have the authority to issue rules that would ensure consumer protection. They will be allowed to conduct hearings on consumer complaints and enforce actions such as restriction on the imposition of excessive interests, fees or charges.
The proposed bill covers all financial products and services. It also institutionalizes consumer protection standards and promotes transparent and responsible pricing, fair and respectful treatment of clients' privacy as well as data protection.
“As the BSP promotes the digitalization of financial services, we also support the passage of the law that will provide our consumers with legal protection as they explore the opportunities and face risks associated with the evolving financial landscape,” BSP Gov. Benjamin Dioko said.
"This is seen to further strengthen the trust and confidence of the public in the financial system,” he added.
House Bill No. 6768 or “An Act Affording More Protection to Consumers of Financial Products and Services" has been approved by the House of Representatives on third and final reading on June 2.