Financial Crime World

ITALY: BANKS FACE NEW RULES ON CONSUMER PROTECTION

Introduction

Rome, Italy - In a bid to enhance consumer protection in the banking sector, Italian authorities have introduced new rules requiring banks to provide clear information to customers before entering into contracts. The move aims to ensure that consumers are fully aware of the terms and conditions of their agreements with financial institutions.

New Rules for Banks

According to the Bank of Italy’s Resolution of 29 July 2009, banks must provide a set of pre-contractual documents containing the main terms and conditions of the contract. The resolution also requires banks to comply with other obligations aimed at ensuring transparency and fairness in their dealings with customers.

  • Banks must inform customers in writing about interest rates applicable to any financing contract
  • They must also provide information on prices that will be applied and other economic terms
  • Customers have the right to withdraw from a contract if they are not satisfied with the terms and conditions, or if the bank unilaterally amends them

Consumer Protection Measures

In addition to these measures, the Bank of Italy has introduced detailed rules for consumer protection, including:

  • The requirement for banks to provide a glossary of terms
  • A statement of fees
  • A fee information document

These documents aim to improve transparency and comparability of fees related to payment accounts. The move is designed to enhance customer protection and ensure that consumers are fully aware of the costs associated with their financial products.

Banking Arbitrator (ABF)

The ABF is an Italian institute established for the resolution of controversies on banking and finance matters. Consumers can file complaints without incurring any costs with the ABF if banks fail to comply with these rules.

Future Changes

In the coming years, Italy can expect further changes in its legal and regulatory policy, particularly in regards to fintech players. As technological evolution continues to shape the banking system, supervisory authorities will need to adapt quickly to ensure an adequate balance between opportunities and risks.

  • Italy is currently implementing EU legislation on lending crowdfunding service providers
  • The banking industry is deepening its commitment to environmental, social, and governance (ESG) goals within sustainable finance