Insufficient or misleading information about financial products and the unfair contract terms are some of the typical situations of violation of the rights of financial service consumers. This also includes hidden fees and commissions, aggressive or illegal debt recovery practices, as well as the lack of transparency regarding financial risks. The protection of consumers of financial services is vital for a prosperous society and its absence can lead to unfavorable situations for consumers and contribute to the appearance of financial crises, the National Bank of Moldova said in the context of the National Financial Education Campaign launched in partnership with the Independent Think Tank "Expert-Grup", IPN reports.
Among the most frequent irregularities is the provision of incomplete information on costs and interest. For example, a bank or non-banking institution promotes a consumer loan with an apparently attractive interest rate, but does not mention the additional commissions.
Another violation is the presentation of "associated" products in order to sell to the consumers more than they need. For example, the imposition of services that accompany a loan, such as an insurance policy in favor of the lending bank, even if the provision of the loan is not directly conditional on this additional service.
It also goes to the misrepresentation of product features, for example, when an insurance agent sells a life insurance policy by presenting it as having high guaranteed benefits, but avoids mentioning that they depend on investment performance.
Incomplete or incorrect information, including the omission of risks associated with investments, for example, when consumers are recommended 'safe' and 'high-returning' investments without explaining the market risks or associated volatility. In our country, these situations are amplified by investment services regarding transactions on the forex and cryptocurrency markets. They are not regulated by any authority and therefore customers have no one to turn to when they consider that their rights have been violated.
Unfair terms are those provisions in the contract that create a significant imbalance between the rights and obligations of the parties to the disadvantage of the consumer. These types of contract terms are not negotiated individually with consumers and are contrary to good faith. Clauses that violate consumer protection provisions refer to the capping of the interest rate and other related payments. Last year, the National Commission for Financial Markets (NCFM) prescribed the refund or cancellation of payments under loan agreements in the amount of about 113.8 million lei in 12,400 contracts.
In order to avoid infringement of rights, consumers of financial services must request detailed information, preferably in writing, i.e. complete, correct and accurate information on the products and services purchased. The contractual terms must be read carefully. Increased attention should be paid to the sections on commissions, interest and any other additional costs, etc.
To inform about irregularities related to the violation of rights, consumers of financial services can use the telephone number provided by the NCFM – 022 85 95 95.
