Hylton Wants Banking Code to Free-up Consumer Choices

An appropriate code of conduct for banking services in Jamaica should address issues that restrict the choice of consumers.

This was proposed by Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, in an address at the recently held stakeholders’ consultation on the draft code at the Courtleigh Hotel, New Kingston.

According to the Minister, the code should “address the bundling of services and products and the use of tying clauses in contracts” that restrict choice.

He observed that, whenever a borrower is obliged by a bank to purchase any product, including an insurance policy as a pre-condition for receiving a loan from the bank, the borrower ought to have the option of choosing the provider of the product.

“Currently, it seems to me that there is a presumption by the banks that the consumer has no other choice, but to use their selected insurance provider, for example” he noted.

The Minister observed that in all transactions transparency was key, and the consumer’s right to choose must be respected.

“As new opportunities, in terms of new financial products, new instruments and technologies, become available, new challenges will be faced by consumers such as understanding the risks associated with complex products. In drafting the Banking Code of Conduct, all of this must be taken into consideration, as we seek to foster consumer confidence, help them to make informed financial decisions and to select products best suited to their needs,” he declared.

He emphasized that the financial services providers need to give consumers clear, concise, reliable, comparable, easily accessible, understandable and timely information on products and services, particularly on costs, penalties and risks.

By Allan Brooks, JIS Senior Reporter