Financial Consumer Protection_ Issue 28

poorly informed consumers . To sum up, financial consumer protection is necessary to building trust in the formal banking sector and thus, in encouraging financial inclusion. Last, the adopting good practices on financial consumer protection by all players will positively influence the financial services sector. Conclusion : The principles of financial consumer protection framework structure the practice of banking. As the nature of banking depends on the transfer of value and risk, there is need for powerful framework to guide the communication between the financial sector and their clients. In the last decade, complexity and diversity of the range of products and services introduced by the financial institutions have shown up enormous increase coupled with the increase in the risks and threats exposed to consumers. To mitigate some of these risks, regulators enact consumer protection frameworks, which serve to help consumers with basic information about their rights and obligations as consumers. On the other side, the consumer protection foster competition by encouraging financial institutions to offer better products and services rather than taking advantage of