ACCION Network Pro-Consumer Pledge

This document discusses the adoption of the pro-consumer pledge by the ACCION Network, a network of leading microfinance institutions (MFIs). The paper states that the pledge:

• Sets out the principles of pro-consumer microfinance;
• Defines principles to ensure that financial services benefit customers, while also ensuring that the legitimate needs of MFIs are met.

The paper explains the following principles of the pledge:

• Quality of service;
• Transparent pricing;
• Fair pricing;
• Avoiding over indebtedness;
• Appropriate debt collection practices;
• Privacy of customer information;
• Ethical behavior of staff;
• Feedback mechanisms;
• Integrating pro-consumer policies into operations.

It states that by adopting the pledge, members of the network agree to:

• Apply these principles in their own organizations;
• Promote the application of these principles in MFIs in their countries;
• Engage with regulatory authorities to promote effective, yet non-burdensome policies or rules;
• Raise awareness in the global microfinance industry about the importance of pro-consumer principles.

The paper concludes that in some cases, collective action by the industry or by regulatory authorities may be required to enforce application of these principles.