Financial Crime World

Assembly Considers Amendment to Consumer Protection Act

Clarifying Responsibilities for a Stronger Protection Framework

The Economic Commission of Nicaragua’s Assembly is processing a proposed amendment to the Consumer Protection Act, aiming to clarify the responsibilities of various agencies in protecting consumers’ rights. The amendment seeks to establish the Office for the Unified Attention to Users’ Complaints (OAUSF) as the primary agency responsible for handling complaints and disputes related to financial services and products.

Current Confusion

According to industry experts, the current lack of clarity has created uncertainty among financial institutions and consumers alike. “The confusion has led to a lack of trust in the system,” said a spokesperson for the Superintendency of Banks and Other Financial Institutions (SIBOIF).

OAUSF: A Department with Limited Resources

The OAUSF was established in 2010 as a department within SIBOIF, with the primary objective of receiving, processing, and tracking complaints and disputes submitted by credit card and micro-credit customers. However, it has received complaints that are not related to violations of laws, regulations, or contractual issues.

  • The agency currently has only two staff members.
  • It lacks a clear communication strategy with financial institutions and consumers.

Concerns about Adequacy of Resources

Industry experts have expressed concerns about the adequacy of resources allocated to the OAUSF to fulfill its mandate efficiently and effectively. “The agency’s workload has increased significantly, but its resources remain limited,” said an industry insider.

Expected Improvements with the Amendment

The amendment aims to improve the transparency and accountability of the OAUSF’s operations by:

  • Clarifying the responsibilities of various agencies in protecting consumers’ rights
  • Providing adequate resources for the OAUSF to fulfill its mandate
  • Establishing a clear communication strategy with financial institutions and consumers

Next Steps

The Economic Commission is expected to vote on the amendment soon, which will then be sent to the Assembly for approval. If approved, the amendment is expected to come into effect in the coming months.

Background

In 2010, the Nicaraguan government enacted a moratorium on debt payments by consumers, leading to an influx of complaints and disputes related to financial services and products. The OAUSF was established as a response to this situation, with the primary objective of receiving, processing, and tracking complaints and disputes submitted by credit card and micro-credit customers.

However, the agency’s operations have been hampered by limited resources and unclear communication strategies with financial institutions and consumers. The amendment seeks to address these issues and improve the transparency and accountability of the OAUSF’s operations.