CBUAE Imposes Dh600,000 Fine on Firm for Breaching Consumer Protection rules

The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh600,000 on an unnamed finance company for failing to comply with market conduct and consumer protection regulations.

 

The fine was issued under Article (137) of Decretal Federal Law No. (14) of 2018, which concerns the Central Bank and the Organisation of Financial Institutions and Activities, along with its amendments.

 

According to a statement from the apex bank, the penalty follows investigations that revealed the finance company’s non-compliance with regulations and standards relating to market behaviour and consumer rights.

 

The Central Bank emphasised its commitment to maintaining transparency and integrity throughout the financial services sector. The CBUAE endeavours to use its supervisory and regulatory powers to ensure that all finance companies and their staff adhere to UAE laws, regulations, and standards, the statement read.

 

Protecting Consumers

One of the Central Bank’s objectives is to establish regulations and standards for the protection of consumers of licensed financial institutions. These regulations are intended to ensure consumers’ interests are protected when using any financial product and/or service or when they have a relationship with licensed financial institutions.

 

By introducing these regulations, the Central Bank ensures that the financial institutions’ approach to consumer protection aligns with international standards.

Consumer protection includes:

 

• Setting standards for business and market conduct for licensed financial institutions.

• Strengthening the governance and oversight of the design, promotion, and sale of financial products and/or services.

• Promoting responsible financing practices to protect consumers from becoming over-indebted.

• Ensuring licensed financial institutions provide effective and timely disclosures to consumers regarding matters and/or risks that may affect their decision to purchase a financial product and/or service.

• Giving consumers access to the right information at the right time to allow them to make informed decisions.

• Addressing unreasonable barriers and limits to fair competition and consumer choice.

• Implementing clear and reasonable mechanisms for handling consumer complaints by licensed financial institutions.

• Improving consumers’ knowledge, awareness, and ability to assess financial products and/or services.

• Promoting inclusion for all segments of society by eliminating unreasonable barriers or practices that limit access to financial products and/or services. 

 

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