Fines of up to P2 million and up to five years of jail time await unethical financial service providers and scammers found guilty of a bill the House of Representatives passed before going to recess.
This according to Quirino Rep. Junie Cua, who on Tuesday said House Bill Number 6768, or the Financial Products and Services Consumer Protection (FINSCOP) Act, should discourage individuals or groups planning to take advantage of consumers hoping to avail of financial services or products in order to maximize or augment their earnings.
“It should also give consumers the confidence to avail of these financial services.”
Cua explained that the FINSCOP Act––passed on third reading last week––was passed in order to provide additional protection to consumers in light of the increasing number of financial services and products offered on online platforms, as well as the numerous complaints received by the Bangko Sentral ng Pilipinas (BSP).
“There are many legitimate financial products in the market, but we have observed over the years several spurious or suspicious products offered via online channels,” said Cua, Chair of the House Committee on Banks and Financial Institutions and one of the principal authors of the bill.
The veteran lawmaker from Quirino pointed out that “as more and more Filipinos go online, we expect a deluge of digital banking services, online investment services, and even application-based financial services to flood the market.”
“As more and more Filipinos go online, we expect a deluge of digital banking services, online investment services, and even application-based financial services to flood the market.”
“The FINSCOP Act should serve as a stern reminder to all these financial service providers to be fair, forthright, and transparent in their dealings with consumers,” said the Quirino solon.
“It should also give consumers the confidence to avail of these financial services and products because they know there is a mechanism to address their complaints.”
The proposed measure empowers financial regulators like the BSP, Securities and Exchange Commission, and Insurance Commission to formulate and enforce rules with regard to financial services and products within their jurisdiction and to provide an efficient consumer complaints handling system.
Those found violating these rules and the provisions of the FINSCOP Act can face sanctions to be imposed by these financial regulators. The sanctions include disqualification or suspension of the officers of the financial services provider, fines, and the suspension of operations.