Results of 4/2008 poll

July 15, 2008    

Q. For typical microfinance clients, what is the most important consumer protection concern?

- Interest rates and transparent pricing: 47%
- Over-indebtedness: 37%
- Data privacy, security, and identity theft: 7%
- Recourse (resolving errors and disputes): 2%
- Other: 7%*

This poll reflects concerns about the transparency of pricing in the microfinance industry, as well as growing awareness about a problem little discussed until now – client over-indebtedness. Disclosure of interest rates, fees, and other costs of accessing financial services – in a way that is understandable to consumers with relatively low levels of education and experience with formal finance – topped the list of consumer protection concerns. Price transparency is important to permit informed choice and comparison shopping and also spurs competition among providers to lower costs and improve the offer. Over-indebtedness, perhaps especially in credit markets that are growing very rapidly and attracting aggressive new players, products, and practices has also surfaced on the radar screen.

* Total number of responses: 61