Annual Report 2019
54
CENTRAL BANK OF ARMENIA
CONSUMER PROTECTION AND
FINANCIAL EDUCATION
I saw
T
he Central Bank pursues protection of consumer rights and
lawful interests by making sure that financial service providers'
business conduct is fair and that appropriate institutional
environment and financial education framework are in place.
Regulatory framework development
In 2019 changes were made to extra requirements to
improved transparency in sub-legislative acts on communication and
information disclosure by financial institutions; effective from August
2019, these are designed to improve information disclosed and
provided to consumers on mortgage and agricultural loans, verbally
and/or remotely disclosed information to consumers in the cases of
early repayment, additional information on financial services provided
remotely, information containing special warning in advertising.
materials and websites. Financial institutions will also provide clear,
complete and affordable extracts to information on mortgage and
agricultural loans, as well as individual sheets (in new a format) of
essential terms of consumer, agricultural and mortgage loans.
The supplemented text of the sub-legislative act on
communication with guarantors by banks and credit organizations
took effect from December 6, 2019, according to which the provisions
on the communication now apply to a wider range of contracts.
Guarantors will have the opportunity to electronically agree to accept
the guarantee and understand the consequences arising therefrom.
From now on, the guarantors will receive the reminder about the
obligations in the most convenient way.
ANNUAL REPORT 2019View entire presentation