Microfinance Leaders Launch Campaign for Client Protection at Clinton Global Initiative

At the Clinton Global Initiative this week, the Center for Financial Inclusion at ACCION International has announced a Campaign for Client Protection in Microfinance - a broad-based initiative to unite microfinance providers in commitment to the campaign standards for the appropriate treatment of low-income clients. Founding partners of the Campaign include Al Amana (Morocco), CGAP, Compartamos Banco (Mexico), Deutsche Bank, Freedom from Hunger, Grameen Foundation, Opportunity International, Pro Mujer and Women's World Banking.

Designed to maintain and extend the microfinance industry's dedication to the welfare of its clients in a period of rapid growth, the campaign will promote a Microbanker's Oath, akin to the Hippocratic Oath, articulating six core principles:

• Avoidance of reckless lending that creates over-indebtedness
• Transparent and fair pricing
• Collections practices that are not abusive or coercive
• Ethical standards for staff
• Recourse mechanisms for client problems
• Privacy of client data

Beyond adherence to common principles, the Campaign will develop implementation tools and certification standards to ensure that pro-consumer practices are implemented. The Campaign also seeks to engage microfinance investors, who have become increasingly active in monitoring the social performance of financially self-sustaining MFIs.

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