While dealing with financial service providers, Pakistani consumers face problems ranging from irresponsible lending practices to unfair contracts, abusive charges and advices by salespeople that lack objectivity.
“Despite the fact that Consumer Protection Department at the State Bank and the Banking Ombudsman entertain complaints from consumers, grievances redressal is not satisfactory,” said Consumers Association of Pakistan (CAP) Chairman Kaukab Iqbal on Thursday while addressing the 4th Financial Services and Consumers Conference.
The conference was organised by the Consumer International-backed CAP at a local hotel with Deputy Governor State Bank of Pakistan (SBP) Kazi Abdul Muktadir as the chief guest.
President and CEO Silkbank Azmat Shahzad Ahmed attended the moot as a guest of honour. Kaukab said financial institutions in Pakistan had a target-oriented approach to get more clients rather than facilitating and satisfying their consumers with better services. He slammed banks and other financial institutions for fleecing their customers under various fictitious heads.
“Service providers use technical marketing practices to trap customers and lack of information leaves consumers hapless,” the CAP chief said. He also deplored a lukewarm response to customers’ complaints by the Banking Ombudsman which, Kaukab claimed, had resolved only 362 of the 1,047 complaints received during 2010. The CAP chairman urged the SBP, Banking Ombudsman and the Competition Commission of Pakistan to augment their mechanism through keeping a vigil eye on the delivery of services by the financial institutions, especially in the rural areas. Elaborating on the consumers’ doubts about the religious status of Islamic banking in the country, Kaukab stressed the need for community learning and understanding towards the distinguishing features of Islamic banks.
