To raise the standard of consumer rights protection in the financial sector and comply with the Association Agreement between Georgia and the European Union, the National Bank of Georgia has approved amendments to the Regulation on the Protection of Consumer Rights in the Provision of Services by Financial Organizations, which will come into force on July 1, 2024.
Protecting the rights of consumers in the financial sector is a key priority for the National Bank of Georgia. Therefore, the National Bank of Georgia continually strives to refine and improve current practices, incorporating best international experiences and addressing sector challenges.
According to the changes, customers will have the right to refuse remotely concluded contracts, as well as loans/credits issued up to one million GEL, within 14 days of signing. Specifically, in the event of refusing a loan/credit agreement, customers will be required to return the withdrawn principal, cover the interest for the used period, and pay costs incurred by administrative bodies and notaries. Additionally, the obligation to specify information about the right of refusal and its conditions in the contract is mandated. Certain exceptions related to the exercise of this right are also outlined in the regulation.
Furthermore, the changes mandate that financial organizations must verbally inform customers of the important terms of the contract before providing the financial product. They must also ensure the placement of certain types of information and contracts on Internet and Mobile Banking platforms.
The updated regulation on the protection of consumer rights in the provision of services by financial organizations also clarify certain concepts and introduce new term definitions.
It is noteworthy that the financial sector was fully involved in the draft review process. Additionally, the document was publicly available for review by any interested parties.
In the future, the National Bank of Georgia will continue to study best international practices and sector challenges and, if necessary, further refine the regulatory framework.
