Brussels, 18/10/2011 (Agence Europe) - The new G20 proposals on the financial protection of consumers flout the lessons learned from the crisis, say Consumers International (CI) and the European Consumers' Union (BEUC). The two organisations deplore the fact that these proposals do not make any explicit reference to deposit guarantees in the case of banking failure and do not support the adoption of minimum norms for financial products. They had stated this in an open letter published on 13 October prior to the G20 Finance meeting in Paris, and are now planning on the G20 summit (Cannes, 3-4 November) to put matters right. BEUC, for its part, calls on the EU to set an example.
The international consumers' defence movement considers that the vital failings in the G20 proposals on financial services bear witness to the fact that little effort was made to improve consumer protection in the event of bank failure. It believes that, as these vital points were left out, this will prevent high-risk mortgages and irresponsible market credits from being eliminated. They also call on the G20 leaders to support the creation of a new international organisation for consumers' defence with regard to banking services.
Monique Goyens, BEUC Director General, said that, as G20 leaders still refuse to take the essential and concrete measures for protecting consumers on the financial markets, the EU must set an example. With bold measures in the areas of mortgage credits and placement products, Europe can give the signal so urgently needed and thus contribute to helping consumers in a world of ever more connected financial markets, she said.
Jim Guest, CI President, said he believed the recommendations have not included two of the most important lessons learned from the financial crisis - that regulators should have been more ambitious in order to be rid of bad quality and high-risk financial products, and that consumers need to know their money is guaranteed by deposit protection mechanisms. (AN/transl.jl)