Question & AnswerQ&A (IRR of Republic Act No. 11765)
The full title is the "CDA Implementing Rules and Regulations of the Financial Products and Services Consumer Protection Act" or the "CDA FCPA IRR."
The rights include: a) Right to fair and equitable treatment; b) Right to disclosure and transparency of financial products and services; c) Right to protection against fraud and misuse of assets; d) Right to data privacy and protection; and e) Right to timely handling and redress of complaints.
These rules apply to all financial products or services offered or marketed by all types of cooperatives as authorized in their Articles of Cooperation and By-Laws, except insurance cooperatives and cooperative banks.
Cooling off refers to the policy or agreement allowing a financial consumer to consider the costs and risks of a financial product or service, free from pressure of the CDA-regulated entity, and to cancel the agreement without penalty upon written, electronic, or valid notice during a specified period.
A financial consumer complaint is an expression of dissatisfaction submitted by a financial consumer relating to a financial product or service regulated by the Authority, where a response and/or resolution is expected.
CDAREs must treat financial consumers fairly, honestly, and professionally, avoid unfair terms that create significant imbalance against the consumer, not employ abusive collection or debt recovery practices, and establish a Code of Conduct applicable to all staff and agents.
They must conduct affordability and suitability assessments considering the consumers' financial situation, needs, capabilities, and risk profiles, and have written procedures for determining affordability and suitability to prevent over-indebtedness.
CDAREs must adopt a clear cooling-off policy specifying products with a cooling-off period of not less than three (3) business days and up to ten (10) business days, allowing consumers to cancel contracts without penalty except for processing costs, with no undue burden on exercising this right.
CDAREs must have a Financial Consumer Protection Assistance Management System (FCPAMS) that includes receiving, recording, evaluating, resolving, monitoring, and reporting of complaints, with accessible channels and clear policies on complaint processing timelines.
The Authority can impose enforcement actions including restrictions on collection of excessive fees, disqualification or suspension of responsible officials, fines, cease-and-desist orders without prior hearing, suspension or cancellation of operations for violations, and orders for disgorgement of profits.
Sanctions may include penalties under the Cooperative Development Authority Charter of 2019, the Cooperative Code of 2008, suspension or cancellation of authority to operate related to a financial product or service, and other administrative sanctions pursuant to relevant rules and issuances.
Actions or claims prescribe after five (5) years from the consummation of the financial transaction or discovery of deceit, and in any event prescribe after ten (10) years from the commission of the violation.
The Board is responsible for establishing, reviewing, approving, and overseeing implementation of the cooperative's Consumer Protection Risk Management System (CPRMS), reviewing the Code of Conduct, ensuring resources for training, approving remuneration packages promoting responsible conduct, and reviewing compliance reports.
Responsible pricing means pricing, terms, and conditions of financial products and services are transparent, affordable to clients, and sustainable for CDA-regulated entities.
They must disclose risks, terms and conditions, rights and responsibilities of consumers and CDAREs, fees and charges, cancellation policies, involvement of agents, potential conflicts of interest, and contact information, all in clear, concise, and timely manner.
Training must be adequate to ensure understanding of product features, risks, terms, costs, relevant consumer protection requirements, and include financial and digital literacy as appropriate. Training should cover customer service skills, compliance, and ethical sales practices.
They must comply with the Data Privacy Act of 2012, its Implementing Rules and Regulations, and issuances by the National Privacy Commission, ensuring security and confidentiality of financial consumer data and transactions.
Mediation must be completed within 15 calendar days from conflict coaching, conducted only once, and may be terminated if no settlement is reached or parties decide to end proceedings. Counsel appearance is prohibited, and CDA Omnibus Rules of Procedure apply as much as practicable.
It must contain the parties' names and addresses, cause of action, date of loss or controversy, amount claimed, grounds for claim, relief sought, Certification of Non-Forum Shopping, and payment of docket fees.