Cli̇ent Protecti̇on Pri̇nci̇ples (CPP)
Responsible financial inclusion is being fully transparent in the pricing, terms and conditions of all financial products. Responsible financial inclusion is working with clients so they do not borrow more money than they can repay or use products that they do not need. Responsible financial inclusion employs respectful collection practices and adopts high ethical standards in the treatment of clients. Responsible financial inclusion gives clients a way to address their complaints so they can be served more effectively. Responsible financial inclusion ensures client data remains private. Responsible financial inclusion protects clients, businesses, and the industry as a whole.
Responsible financial inclusion encompasses core Client Protection Principles to help financial service providers practice good ethics and smart business. The Client Protection Principles are the minimum standards that clients should expect to receive when doing business with a financial service provider. These principles were distilled from the path-breaking work by providers, international networks, and national microfinance associations to develop pro-client codes of conduct and practices.
There is consensus within the financial inclusion industry that providers of financial services should adhere to these core principles:
The privacy of individual client data will be respected. Providers will only use client data for authorized purposes and with client consent. They will maintain systems to keep client data from being released improperly or misused and to protect clients from fraud, whether by internal staff, partner companies or bad actors.
Providers will take care to design products, services and delivery channels in such a way that they do not cause clients harm. Products, services and delivery channels will be designed taking client characteristics into account and with client feedback.
Providers will take adequate care in all phases of their credit processes to determine that clients have the capacity to repay without becoming overindebted. In addition, providers will implement and monitor internal systems that support prevention of overindebtedness and will foster efforts to improve market level credit risk management (such as credit information sharing).
Providers will communicate clear, sufficient and timely information in a manner that clients can understand, so that clients can make informed decisions. The need for transparent information on pricing, terms and conditions of products is highlighted.
Pricing, terms and conditions will be set in a way that is affordable to clients while allowing for financial institutions to be sustainable. Providers will strive to provide positive real returns on deposits.
Financial service providers and their agents will treat their clients fairly and respectfully. They will not discriminate. Providers will ensure that adequate safeguards are in place to detect and correct corruption as well as aggressive or abusive treatment by their staff and agents, particularly during the loan sales and debt collection processes.
Providers will have in place timely and responsive mechanisms for complaints and problem resolution for their clients and will use these mechanisms both to resolve individual problems and to improve their products and services.