Each year the global economy creates an estimated 150 million new consumers of financial services. Most are in developing countries, where consumer protection and financial literacy are still in their infancy. In a world where banks are highly interdependent, a banking crisis anywhere in the world will further undermine consumer confidence and could have unpredictable international consequences. The global dimension of financial services and the increasing interdependence of financial markets, as well as the common challenge of effectively regulating complex and fast-moving markets in financial consumer services, adds to the urgency for better regulation of such practices.
In light of the global financial crisis and its results on developing countries like India, CUTS International is joining with Consumers International (CI), being a member, and other consumer organisations around the world in calling up on the G20 to take urgent action to protect consumers of financial services. In support of the international campaign Mr. Pradeep S. Mehta, Secretary General, CUTS International wrote letters to the Prime Minister Mr. Manmoham Singh and Finance Minister Mr. Pranab Mukherjee to raise the issue and to support the establishment of an experts group on consumers’ financial protection during forthcoming G20 Summit to be held in Seoul (South Koria) on 11-12 November 2010.
The Experts Group should be charged to report to the G20 summit in 2011 with recommendations supporting effective financial consumer protection around the world.
The G-20 is an informal forum that promotes open and constructive discussion between industrial and emerging-market countries since 1999. In addition to heads of governments from the twenty member countries, central bankers and finance ministers, the heads of key international institutions, including the United Nations, the International Monetary Fund, the World Bank and the Financial Stability Board, will participate in the meetings.
Consumer Unity & Trust Society (CUTS International), an Indian origin international advocacy organisation, is pursuing social justice and economic equity, within and across borders, since its inception in 1983.