Responsible Finance: The Making of Association-Led Client Grievance Redress Mechanisms - Experiences of AMFIU in Uganda and Consortium Alafia in Benin

A grievance redress mechanism (GRM), also called complaint resolution mechanism, recourse or redress mechanism, or mediation, refers to a system for collecting, resolving, and responding to client questions and complaints, and for using client feedback to improve products and operations. The existence of well-functioning GRMs that are easier, faster, and more affordable than seeking redress through the court system is recognized as a fundamental element of consumer protection and a responsible financial system.

This report summarizes the process used, mechanisms set up, and early lessons from the Responsible Finance through Local Leadership (RFLL) pilot interventions on GRMs with the Association of Microfinance Institutions in Uganda (AMFIU) and Consortium Alafia in Benin to develop and implement a GRM in each of these two associations. It aims to contribute to the growing interest in spurring the application of and compliance with the consumer principle related to complaint resolution mechanisms.