PPPs - Point to point protocols
Point to Point Protocols are among the first instruments used by the Italian Banking Association to facilitate a concrete collaboration with Consumer Associations. These are specific instruments adopted on a voluntary basis or imposed by law. Their objective is to regulate certain aspects of the relationship between banks and customers, so as to resolve problematic issues and to fill regulatory gaps. Several Point to Point Protocols have been signed over the past few years, as follows:
PPP on contract revision
Point to Point Protocol concerning contract revision was signed in light of the EU regulations on abusive clauses. This PPP has led to the revision of banking contracts for the purpose of canceling unfair terms, if any.
PPP on general terms and conditions governing the relationship between banks and customers
The Point to Point Protocol on the general terms and conditions governing the relationship between banks and customers was signed in 2000 between ABI and 9 Consumer Associations. The 1999 version was updated through this PPP, in light of the new regulatory principles originating from the EU guidelines for consumer protection. Specifically, this Point to Point Protocol regards investment and payment services, as well as liquidity management.
PPP on the general terms and conditions for the use of credit cards
The Point to Point Protocol on the general terms and conditions for the use of credit cards was signed in 2002 between ABI and 11 Consumer Associations. With this paper, the Parties defined a framework regarding “general terms and conditions for the use of credit cards”. This PPP was drafted in compliance with consumer protection regulations, and with the spirit of establishing a well-balanced and fair relationship between the issuer and its customers.
PPP on the “General guarantee on banking transactions”
The Point to Point Protocol on the “General guarantee on banking transactions (the so-called fideiussione omnibus)” was signed in 2002 between ABI and 10 Consumer Associations. It contains provisions regulating guarantees regarding banking transactions in general, as well as specific provisions that apply to cases of relationships with customers.
^ up
ABI - Consumer associations round table
The ABI – Consumer Associations Round Table was established in 2003 to discuss the most important current financial matters, as well as banking issues relating to possible customer concerns.
Its goal is to examine claims voiced by consumers and consumer representatives, and to find shared solutions to these problems, even by the use of specific tools such as Agreements and Conventions. This Round Table has provided an important venue to share views, discuss issues, and outline shared projects and initiatives. Within this context, ABI has adopted a “flexible” approach to relations with Consumer Associations, in other words it allows them to be free to decide whether to participate in individual initiatives or not, and to sign Point to Point Protocol on a voluntary basis.
^ up
Training courses and financial education
In the context of the Permanent Joint Task Force on Savings and Investments, several in-depth and study seminars on key economic and legal issues have been organized. These seminars address representatives of the banking sector and Consumer Associations. The first meeting, which was held in May 2005, addressed the issue of families’ savings. On that occasion, the MiFID Directive was analyzed to raise banks’ awareness of its potential opportunities and concerns. After two years the same experience was repeated and another meeting was held in October 2007.
Seminars
Within the scope of its financial education activity, which mainly addresses the “citizen-consumer”, ABI has created practical guides with regard to key items for clients. These guides have been prepared in collaboration with and approved by Consumer Associations, which affix their logos to these guides and commit themselves to directly promoting and distributing them.
Guides
Guide to Saving – how to find your way about: this is an instrument that aims at providing information on how to manage the family budget, by providing useful tips on budget planning criteria as well as to correctly evaluate family finances.
Guide to IBAN and Credit Transfers: is a practical handbook that clearly and simply explains how the new bank code works to the client. This code has recently been introduced following the creation of the Single Euro Payments Area (SEPA).
Guide to Early Repayment Mortgage Loan: this is an instrument that aims at explaining to citizens what the Agreement concerning early repayment on mortgage loan is about, also by providing user-friendly charts, which summarize cases of interest.
^ up
Joint task force on savings and investments
ABI and Consumer Associations established the “Permanent Joint Task Force on Savings and Investments” at the beginning of 2005, along the lines of a “flexible” membership approach. It pursues the task of improving customer knowledge, thus preventing problems arising from any new financial products’ complexity.
The Task Force promotes initiatives aimed at improving the relationship between banks and customers, by raising clients’ risk awareness and return trade off associated with each product. The Task Force is also working on streamlining documentation pertaining to each financial instrument.
^ up
Agreement on early repayment mortgage loan
ABI and 16 Consumer Protection Associations operating in Italy signed the Agreement concerning the early repayment of mortgage loans on May 2nd 2007. The Agreement identifies the maximum early repayment charge applicable to mortgage contracts. This agreement was the outcome of a long process, whereunder regular meetings were held between ABI’s experts and Consumer Associations, to define a common position on the matter. This paper was designed so as to allow both banks and consumers to identify the maximum early repayment charge applicable to each type of contract.
When the Agreement was in the process of being signed, the Management Committee regarding the ABI - Consumer Associations Agreement was established with the aim of ensuring a correct interpretation and application of the provisions. The Committee is composed of representatives appointed by ABI and Consumer Associations.
^ up