Financial consumer protection is defined as the state in which the rights of consumers of financial services are preserved through a clear legislative framework.
This framework defines and clarifies the relationship between providers of financial services and their customers, in order to ensure the rights of consumers in terms of fairness and transparency. Financial consumer protection also involves efforts to increase consumer awareness and enable them to make informed financial decisions; it is a crucial component in achieving financial inclusion.
Moreover, having a comprehensive framework in place for financial consumer protection leads to increased confidence and competitiveness in the financial system, thereby improving the quality and accessibility of financial services provided to customers.