In Kyrgyzstan, no government agency is not officially defined as responsible for protecting of the rights of pawnshops customers, providers of payment and other services - expert I. Funke 

In terms of consumers protection microfinance sector of the country achieved significant progress, specialist of the World Bank on financial involvement Ilka Funke noted at the International conference "Microfinance - successes, problems and solutions" held in Bishkek on June 25-26. There is an increase in reserve requirements for customers who have multiple loans, it was enacted a ban for indexation of loans in foreign currency and the size of fines for overdue loans was limited. "Most of the microfinance institutions are guided by the best international practices and revise the policy of lending, risk management, showing good results. For example, the number of borrowers with multiple loans decreased to 13% compared to 31% in 2011-2012", - she informed.  

Among the achievements of the financial sector, the expert noted its shortcomings. Namely: discrepancy between some provisions, lack of legal framework for credit bureaus and lack of Regulations for the protection rights of customers, frequent changes and additions to legislation that creates additional complexity. "Another important issue is the lack of affordable channels of borrowers for fast and efficient settlement of disputes and the limited functions of the NBKR in the field of disputes resolution", - I. Funke said.  

However, as I. Funke stressed - "In Kyrgyzstan, no public authority does not consider itself responsible for protecting the rights of pawnshops customers and payment service providers".  

She noted that the pawnshops activities and payment service providers in the country is regulated by no one. According to her, in order to clarify the mandate and role of each of the supervisory authority, including the Anti-Monopoly Agency, the National Bank of the Kyrgyz Republic and other organizations, a Memorandum of Understanding should be concluded and a legal framework for the regulation of the foregoing should be developed. "Today, many countries around the world to improve the quality of supervision include issues of consumer right protection in the regulatory framework for financial institutions", - the expert added.  

In conclusion, the expert recommended to the public authorities, MFIs to regulate the legislation, guiding by the Banking Code, to create an institution of the financial ombudsman, to simplify and to streamline the procedure for obtaining a loan, to disclose information to the client on the effective interest rate, fees and schedule of nominal payments, etc.