Circular 131 on the Protection of Consumers of Financial Products and Services

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Bank of the Republic of Haiti
Circular

CIR. : BRH/IF/2026/131

TO FINANCIAL INSTITUTIONS

In accordance with Articles 83, 192, and 193 of the Law of May 14, 2012 on banks and other financial institutions, Article 45 of the Decree of November 25, 2020 on exchange intermediaries, Articles 54 to 56 of the Decree of June 5, 2020 on the organization and functioning of microfinance institutions, Articles 12 and 15 of the Law of June 26, 2002 on savings and credit cooperatives, and Circular 121 on electronic payment services, financial institutions are required to comply with the provisions of this circular regarding the protection of consumers of financial products and services.

1. OBJECT

This circular establishes minimum standards to ensure fair and responsible treatment of consumers of financial products and services during the purchase and use of these products and services, as well as in their relationships with the financial institutions providing them. It is based on the G20/OECD High-Level Principles on Financial Consumer Protection, as well as the World Bank’s good practices for financial consumer protection, namely:

a) Governance, culture, and accountability; b) Fair and equitable treatment of consumers; c) Information dissemination and transparency; d) Quality financial products; e) Responsible conduct and culture of financial service providers and intermediaries; f) Protection of consumers’ assets against fraud, scams, and misappropriation; g) Protection of consumers’ data and privacy; h) Complaint handling and redress.

2. SCOPE

This circular applies to all financial institutions referred to in Article 2 of the Law of May 14, 2012, leasing companies, microfinance institutions, savings and credit cooperatives, electronic payment service providers, including their agents, and distribution sub-agents, when used to distribute financial products and services, hereinafter collectively referred to as “Financial Institutions”.

3. DEFINITIONS

For a better understanding of this circular, it is important to define the following terms:

a) Banker's check: a check issued by a bank payable to a natural person or a legal entity. It cannot be issued payable to “cash” or “bearer”.

b) Abusive, fraudulent, or rights-restrictive clause: a clause that deprives or limits the consumer’s right to file a complaint, appeal, or legal action against the financial institution. It authorizes the institution to unilaterally modify contractual conditions (rates, fees, penalties, services, etc.) without clear prior notice and without the consumer having the possibility to terminate the contract without penalty; impose unjustified, disproportionate, or previously undisclosed fees, commissions, or penalties; excessively exclude or limit the financial institution’s liability in case of error, fault, breach, or service failure; subordinate access to a financial product or service to the acceptance of another unsolicited product or service (forced tied selling); impose manifestly unbalanced obligations on the consumer without equivalent consideration for the institution; unduly restrict the consumer’s right to terminate the contract or provide excessive penalties upon termination; collect, use, or communicate the consumer’s personal data without their free, informed, and prior consent, outside cases provided by law.

c) Inactive account: a deposit account on which no deposit, withdrawal, transfer, and/or payment transactions have been carried out for one (1) consecutive year for current accounts, three (3) consecutive years for savings accounts, and one (1) consecutive year for electronic payment fund accounts. It also refers to non-automatically renewable term deposit accounts that have matured for one (1) year.

d) Conflict of interest: a conflict that arises when a personal, financial, or commercial interest of an institution, its executives, employees, agents, sub-agents, or partners competes or risks competing with the consumer’s interests. This includes, among others, without limitation:

• financial or commercial incentives likely to influence a recommendation, transaction, or service to the detriment of the consumer;
• situations where the same person acts simultaneously for multiple parties with divergent interests.

e) Free and informed consent: any manifestation of free, specific, unambiguous will, with full knowledge of the facts by the consumer, without pressure or deception, given by a clear positive act. Tacit, presumed, or inferred consent from inaction is prohibited.

f) Advice: any personalized recommendation issued by a financial institution to a consumer, concerning a specific financial product, service, or transaction.

g) Consumer: any natural person who uses, has used, or intends to use one or more financial products or services offered by financial institutions. The term also applies, where applicable, to microenterprises and small businesses that rely on financial products or services to support their routine operational needs.

h) Total cost of credit: the total cost paid by the credit applicant. It is calculated by adding all fees and commissions payable upon credit establishment and during its repayment period. It represents the difference between the total amount the borrower must repay and the borrowed principal amount.

i) Discrimination: a situation in which, based on origin, sex, family status, physical appearance, economic situation, surname, place of residence or banking domicile, health status, loss of autonomy, disability, genetic characteristics, lifestyle, sexual orientation, gender identity, age, political opinions, trade union activities, ability to express oneself in a language other than French or Creole, actual or supposed membership or non-membership in a specific ethnicity, nation, so-called race, or religion, a person is treated less favorably than another in a comparable situation.

j) Data: information provided by a consumer to the financial institution. It includes written, photographic, and biometric information.

k) Personal data: any information relating to an identified or identifiable natural person, notably by an identifier, account number, biometric data, address, financial or digital data.

l) Abandoned funds: funds and assets received by a deposit-taking financial institution, such as a bank and a microfinance institution, as a deposit, loan, or other liabilities to be returned or disposed of on behalf of others when, within ten (10) years of receiving the funds or assets, or upon expiration of the notice period or agreed term, the owner has not carried out any deposit, withdrawal, collection, or transfer transaction, nor otherwise been in contact with the financial institution. In other words, abandoned funds consist of any account that has not undergone any transaction for 10 years or more.

m) Microenterprise: any enterprise that employs at most five (5) persons and whose annual turnover does not exceed two million five hundred thousand gourdes (2,500,000.00 HTG).

n) Personal Identification Number (PIN): a password or any other secret code used by a cardholder to access financial services.

o) Small enterprise: any enterprise that employs between five (5) and twenty (20) persons, and whose annual turnover or total balance sheet, while exceeding two million five hundred thousand gourdes (2,500,000.00 HTG), does not exceed twenty (20) million gourdes.

p) Complaint: any expression of dissatisfaction by a consumer regarding the products and services offered by a financial institution.

q) Abusive practice: an act or practice that takes unreasonable advantage of a consumer’s situation, notably their lack of understanding of conditions or risks, their inability to defend their interests, or their legitimate trust in the financial institution. For example, abusive practice may refer to the following cases: sale of financial or complex products to vulnerable clients, aggressive commercial pressure or abusive debt collection, forced bundling of unwanted products (e.g., mandatory insurance), exploitation of low financial literacy or client dependency.

r) Unfair practice: an act or practice that causes or is likely to cause significant harm to the consumer: when this harm cannot be reasonably avoided by the consumer themselves; and when this harm is not offset by corresponding benefits for consumers or for competition. For example: imposition of hidden or unannounced fees; unilateral modification of interest rates or fees without prior notice; billing for services not rendered; account blocking or access restriction without valid reason.

s) Misleading practice: any act, omission, or presentation likely to mislead an average consumer, normally attentive and informed, considering the circumstances. A practice is considered misleading when the information provided or omitted is likely to significantly influence the consumer’s decision, for example by leading them to purchase a product, subscribe to a service, or accept conditions they would not have chosen otherwise. The following are notably considered misleading practices: presenting an offer as free when it involves hidden fees, omitting essential information on costs, risks, or conditions, using ambiguous language to mask actual charges, or mentioning a non-existent guarantee.

t) Financial products and services: any activity, transaction, product, or service involving the management, receipt, transfer, investment, or guarantee of funds, including, without limitation:

• savings, demand, or term deposit accounts;
• credits, loans, overdrafts, and financing facilities;
• payment instruments (checks, cards, transfers, mobile wallets, etc.);
• investment, collective investment, and portfolio management products;
• advisory or financial intermediation services;
• as well as any other financial product or service covered by law and regulations, or designated as such by the BRH.

u) Advertising: any form of public communication intended to invite or encourage, directly or indirectly, a person to use a financial product or service.

v) Subrogation: a legal mechanism by which a third party who, having settled the debt on behalf of their debtor, then holds all rights to take action against that debtor.

w) Over-indebtedness: a situation of a consumer in good faith who is manifestly unable to meet all their due and payable debts. In other words, the consumer is incapable of meeting all obligations arising from the various loan contracts they have entered into, given their income and expenses.

x) Processing: any operation applied to personal data such as collection, recording, organization, storage, consultation, use, communication, transmission, or deletion.

4. FUNDAMENTAL RIGHTS OF THE FINANCIAL CONSUMER

4.1. Right to clear, accurate, and understandable information

The consumer has the right to sincere, complete, accurate, clear, understandable, and accessible information on the financial products and services offered, notably regarding their costs, rates, fees, risks, conditions, penalties, termination procedures, and remedies.

4.2. Right to fair and non-discriminatory treatment

Financial institutions must treat consumers fairly, with integrity and respect, without any form of discrimination.

4.3. Right to protection against abusive practices and financial risks

The consumer must be protected against any unfair or dangerous practice, whether commercial, contractual, or technology-related, that could cause them to lose money or limit their rights.

4.4. Right to confidentiality and personal data protection

The consumer has the right to access their data, request its correction or deletion, and be informed of any security breach affecting their data.

4.5. Right to contractual transparency

Contracts concluded between financial institutions and their clients must be drafted clearly, legibly, and accessibly, specifying the rights and obligations of the parties. No unilateral modification of contractual conditions may occur without prior notice to the consumer.

4.6. Right to redress and recourse

The consumer has the right to prompt, fair, and free handling of their complaints. Financial institutions are required to establish a formalized internal complaint handling mechanism and inform clients of the existence and procedures for recourse to external dispute resolution mechanisms, where applicable.

5. GOVERNANCE, CULTURE, AND ACCOUNTABILITY

5.1. Responsibility of financial institutions

To comply with the provisions of this circular, each financial institution must develop a comprehensive consumer protection policy, defining the principles, commitments, responsibilities, procedures, and internal mechanisms aimed at ensuring compliance with this circular. This policy must be approved by the Board of Directors. It notably encompasses:

a) the governance framework for financial products and services, including design, prior testing, target market identification, distribution, and post-marketing monitoring, to ensure that offered products and services meet consumers’ needs, situation, and interests, are designed and distributed responsibly, and do not cause harm to consumers throughout their lifecycle;

b) the complaint handling and redress policy, specifying the procedures for receiving, processing, monitoring, and resolving consumer complaints, to ensure effective access to fair, transparent, and efficient recourse mechanisms, quickly rectify suffered harm, and strengthen public trust in the financial system;

c) the policy for managing distribution agents and sub-agents, defining selection criteria, training requirements, supervision and control procedures, and applicable liability rules, to ensure their practices comply with consumer protection requirements.

The General Management is responsible for the operational implementation of policies approved by the Board of Directors. It ensures their effective dissemination within the institution, their integration into operational and commercial processes, as well as the training of personnel and relevant third parties.

It periodically reports to the Board of Directors on the implementation status, significant incidents, received complaints, and corrective measures taken, and provides the BRH with any information required as part of its supervisory activities.

The Board of Directors is responsible for adopting and periodically reviewing the financial product governance framework, to ensure consistency between:

a) the institution’s commercial objectives; b) regulatory requirements; c) and the effective protection of consumers.

5.2. Risk management devices and governance report

Financial institutions are required to establish internal risk management devices related to consumer protection, proportionate to the nature, size, and complexity of their activities.

These devices must enable the identification, measurement, monitoring, and mitigation of risks likely to harm consumers’ interests, notably those related to financial products and services, commercial practices, credit granting, complaint handling, and service continuity.

The Board of Directors periodically receives a governance report on risks to consumers and the corrective measures implemented.

Data related to complaints and redress are subject to specific monitoring, according to procedures specified in this circular.

6. GENERAL PRINCIPLES FOR THE PROTECTION OF FINANCIAL CONSUMERS

Financial institutions are required to respect and apply all the financial consumer protection principles set out below. These principles must guide the design, marketing, distribution, and management of financial products and services.

6.1 Fair and equitable treatment of consumers

Financial institutions are required to treat all consumers fairly, honestly, and justly at all stages of the business relationship, from initial contact to contract termination. They must:
a) ensure that all financial tools, whether digital or not, respect the principles of fairness, transparency, and non-discrimination. Particular attention must be paid to consumers in vulnerable situations, notably those facing economic, social, or informational difficulties. b) adopt appropriate measures, including, when necessary, providing impartial advice, establishing support mechanisms, and offering redress or recovery solutions for clients in over-indebtedness or financial fragility.

Financial institutions must refrain from any unfair, misleading, or abusive practice, notably any action, omission, or communication likely to harm the consumer, mislead them, or exploit their vulnerability. To this end, financial institutions are strictly prohibited from:

a) practicing any form of discrimination;

b) resorting to misleading, unfair, or aggressive commercial practices, notably in advertising, promotion, or distribution of financial products; c) inserting abusive, fraudulent, or rights-restrictive clauses in contracts to the detriment of the consumer; d) unilaterally modifying contractual conditions without sufficient prior notice and justification; e) conditioning access to a product or service to the purchase of another product or subscription to an unsolicited service; f) granting credit without evaluating the consumer’s actual solvency or with knowledge of manifest repayment incapacity; g) inciting or compelling a person to act as guarantor or endorser through direct or indirect pressure; h) deducting fees, commissions, or penalties not brought to the consumer’s attention prior to contract conclusion; i) applying inactivity fees on dormant or inactive accounts, regardless of their nature; j) closing an account without prior motivated notification addressed to the consumer within the prescribed timeframe; k) deducting counting fees on deposits in gourdes, whether in banknotes or coins; l) resorting to abusive, intimidating, or humiliating debt collection methods against the debtor; m) collecting a debt from a third party not bound by a valid guarantee contract; n) retaining pledged funds after full settlement of the debt; o) imposing transfer of assets in payment without the free and informed consent of the consumer; p) authorizing or tolerating merchants imposing additional fees on card or other electronic payments; q) disclosing confidential information regarding the consumer without their consent or outside cases provided by law; r) unjustifiably refusing access to a financial service to a solvent and eligible consumer; s) neglecting to report and compensate any consumer loss related to system failure; t) failing to inform the consumer in advance in case of assignment, transfer, or subrogation of debt; u) retaining abandoned funds and transfers or delaying their transfer to the BRH within the prescribed deadlines; v) manipulating or falsifying transaction data in the context of digital services; w) using or retaining the consumer’s personal identification number (PIN) in violation of security rules; x) failing to inform consumers of their rights, applicable fees, and conditions; y) refusing or hindering cooperation with the BRH during an inspection or information request; z) failing to handle complaints fairly or maintain a complaint register; aa) disseminating false or misleading advertising regarding rates, benefits, or product features;

bb) taking any action infringing upon the consumer’s dignity, privacy, or rights; cc) demonstrating gross negligence in supervising agents and sub-agents or lacking vigilance in dealings with any partner acting on behalf of the institution.

Any form of discrimination, misleading practice, abusive commercial pressure, or provision of unsuitable products is prohibited, including when it results from automated, digital, or algorithmic processes.

6.2 Information dissemination and transparency

6.2.1. General principle

Financial institutions must communicate to consumers clear, sincere, accurate, understandable, and non-misleading information, covering all essential characteristics of financial products and services, notably:
a) their benefits, risks, fees, rates, penalties, and costs; b) the actual conditions for granting or using them, including those related to payments and transactions; c) potential conflicts of interest between the institution and intermediaries (agents, distribution sub-agents, or partners).

6.2.2 Phases and modalities of disclosure

The information obligation applies to all stages of the contractual relationship, se