Consumer protection laws and regulations in deposit and loan services: A cross-country analysis with a new data set

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Consumer Protection in South Africa: Challenges and Opportunities for Furniture Retailers in Cape Town, South Africa

“…According to Ardic et al (2011), different countries apply different frameworks in terms of consumer protection and nature of the framework adopted by a particular framework is dependent on the country's legal environment and a number of other factors such as the economic system, level of literacy, the competitive environment and so on. However, a basic consumer protection framework hinges on three basic factors.…”

“…As the world moves more and more towards the comprehensive protection of the consumer on the marketplace, South Africa has become one of the latest countries to join the consumer protection bandwagon by enacting legislation that supposedly transfers power from sellers to buyers. Ardic, Ibrahim and Mylenko (2011) argue that "government intervention and regulation in the area of consumer protection is justified on the basis of inherent information asymmetries and power imbalances in markets, with producers or service providers having more information about the products or services than the consumers". In 2009, the government of South Africa, after years of consultations and discussions with various stakeholders, enacted the Consumer Protection Act (CPA).…”

Exploring the Managerial Perspectives of Banking Industry Towards Consumer Empowerment: A Study in Banking Industry

“…Furthermore, the regulators and consumer associations of these countries have made it compulsory for banks to inculcate the initiatives aimed at empowering consumers through greater financial education and financial literacy. Apart from this, these countries have incorporated strict adherence to consumer protection rights in the financial sector to cater the disparity of information between consumers and financial service providers and to ensure that consumers don't fall a prey to deceptive practices (Ardic & Ibrahim, et. al, 2011).…”

Safe credit to the poor: The role of anti‐usury policies

“…In several developing countries, as well as in certain areas of the US and Europe, usury laws specify the maximum legal interest rate at which loans can be made (Rockoff, ). Most of these laws also include provisions against the use of violence or threats to collect usurious interests although, in most cases, these features represent subordinate elements of the crime (Attuel‐Mendes & Ashta, ; Brix & McKee, ; Ardic, Ibrahim, & Mylenko, ). This is also referred to as “loan sharking” or “predatory lending,” although these terms are also applied to non‐coercive usurious lending.…”