LEGAL AND SUPERVISORY

FRAMEWORK FOR
CONSUMER PROTECTION

Consumer Protection

Consumer

An individual who buys products or

services for personal use and not for
manufacture or resale

The Role of Islam in Protection of

Consumers
The Holy Quran
"The almighty says... O you who believe! Fulfill
your contracts".(5:1)

"Give full measure when ye measure, and

weigh with a balance that is straight; that is
the most fitting and the most advantageous in
the final determination."(17:35)

History
2nd world war

President John F Kennedy (15 March 1962)

United Nations Economic and Social

Council (1981)
United Nations General Assembly (9 April
1985)

Why to protect a consumer?

Satisfaction of basic needs

Safety
Information
Choice

Be heard
Redress
Consumer Education

A healthy environment

United States of America

Consumer Protection Legislation/Legal Framework
Commission Act (1914)
Consumer Credit Protection Act (1968)
Consumer Affairs Act (1971)

Institutional
Arrangement/Regulatory Framework
Office of Consumer Protection
Consumer Financial Protection Agency
Department of Commerce and Consumer affairs
(DCCA)
General Services
Federal bureau of consumer protection

INDIA

Consumer protection legislation/Frame work

India
Consumer Protection Act (1986)
Banking Ombudsman Scheme (2006)

Institutional arrangements/Regulatory
Framework
Customer Service department
Banking Ombudsman section

Initiatives taken by Reserve bank of India

PAKISTAN

Legal Framework
1. Pakistani perspective
2. Institutional Arrangement comprises
o

Banks own consumer complaint cells

Banking Mohtasib

Consumer Protection Department

Consumer Protection Legislation

Islamabad consumer protection Act (1995)
KPK consumer protection Act (1997)
Baluchistan consumer protection Act (2003)
Punjab consumer protection Act (2005)

Sindh government consumer protection law is

under process

State bank of Pakistan Regulations

Basic Banking Account (2005)
Fair Debt collections Guidelines (2008)
Collection of utility bill (1997)
Pension disbursement through Banks (2010)
Service charges on PLS Deposits (2011)
Suo-moto (2006)
Foreign Exchange Deposits (2005)
Dishonoring of Cheques and Stop Payment
instructions (2005)
Recovery penalty amount imposed by SBP from
customers (2006)
Minimum rate of return on Savings/PLS Deposits
(2008)

Institutional
Arrangements/Regulatory
Framework
The consumer Eye Pakistan (TCEP)
Credit information bureau (CIB)
Banking Mohtasib Pakistan
Consumer protection department

Laws
USA

INDIA

PAKISTAN

Federal Trade

Consumer Protection

In Pakistan there is no

Commission Act

Act (1986)

National Assembly law

(1914)

for consumer protection.

Fair Trading Act

Banking Ombudsman

(1987)

Scheme (2006)

Provincial Assemblies

Consumer Affairs Act

like Islamabad Act

(1971)

(1995) KPK Act (1997),

Consumer Credit

Punjab Act (2005) ,

Protection Act (1968)

Baluchistan Act(2003)

Competition and

LAWS

Consumer Act (2010)

SBP is working on

Wall Street Reform

Consumer protections

and Consumer

laws.

Protection Act (DoddFrank)

Federal Ombudsman
Institutional Reforms
Act, 2013

Role of oversight bodies

Role of oversight bodies

USA

INDIA

PAKISTAN

Office of the
Consumer
Protection.
The United State
Consumer
Protection Bureau
(CFPU).

Customer Service
The consumer Eye
Department
(TCEP)
Banking Ombudsman The Credit
Scheme (2006).
Information Bureau
(CIB)
The Banking Mohtasib

Disclosure and Transparency

USA

INDIA
The Board of
Service provider
Federal Reserve
not only written
System
but also guide
Authorized
verbally
Agent
Recovery agent
Reports
engaged by bank
draft guide and
branch service
committee.

PAKISTAN
Time to time guide
line to financial
services provider and
authorized agent.
It can take action
against them whose do
not comply on the
guideline of SBP.
CPD of SBP aware the
most important
documents when
contracting financial
services provider.

Recommendation and conclusion

Federal legislation.

Consumer rights commissions of Pakistan.

Guideline and loan recovery procedure.
Consumer education and awareness.

Focus on consumer rights .

Protection of Consumer from hazards.
SBP should develop a strong consumer

protection policy.

THANK YOU