CGAP (Consultative Group to Assist the Poor) has released the “Technical Guide for Investors on Implementing the Client Protection Principles,” as part of a wider consumer protection campaign focusing on fair lending within the microfinance industry. The guide encourages investors to adopt the six “Client Protection Principles”—avoidance of over-indebtedness, transparent pricing, appropriate collections practices, ethical staff behavior, mechanisms for redress of grievances and privacy of client data—by providing specific action steps and concrete examples of tools currently being used or developed by investors and fund managers.

By: Stefanie Rubin, Research Associate

About CGAP (Consultative Group to Assist the Poor):

Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Additional Resources:

Source Article: CGAP: “Investors Implementing the Client Protection Principles in Microfinance,” http://www2.cgap.org/p/site/c/template.rc/1.9.42046/

MicroCapital Universe: CGAP: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29