Consumers protection in financial sector within east African community

Abstract

The main objective of this study was to propose an efficient legal framework on how the interest of consumers of financial services must be protected for the sustainability of the EAC country’s economy. The main interest of this study was to let consumers of financial services know their interest, to advise the financial firms to refrain from abusive conduct and for the government to know how strong the protection of consumers in this sector is in as far as its economic stability is concerned. As the Governments offer smart environment to run a business, currently, competition can be perceived in nearly all parts of business in EAC. Taking in mind that developing a financial sector raises varieties of consumers of financial services and reduces the cost of services as well, we can realized that consumers in this area need an exceptional kind of protection contrary to any abusive conducts of financial establishments that are in competition towards the realization of their particular interests. We have found that there is shortage of a consumer redress measures which forms a significant portion of consumer well-being. In the occasion of a disagreement on the understanding of the EAC treaty or a grievance on the dispute concerning consumer protection in financial matters, the EAC treaty does not stipulate the procedures to be tracked. For the consumer safety ,we come to an agreement that financial growth is essential, however it must go hand in hand with consumer protection which is not only restricted to access on financial services and products but also the correctness in that process is needed.