Effect of Dispute Resolution by Consumer Federation of Kenya on Consumer Protection in Commercial Banks of Kenya.
Abstract
Background: Many governments have yet to establish consumer protection laws, despite the financial services sector's expansion. This necessitates providing financial services clients with fundamental protections in order to boost their confidence and promote the adoption of new products. The prevalence of uninformed customers who rely on financial institutions has led to a rise in the misuse of consumer confidence.
Banks and its marketers are increasingly engaging in abusive practices, such as imposing exorbitant charges on clients' accounts without providing proper advice. The goal of the study was to learn about the measures taken by the Consumer Federation of Kenya to provide efficient consumer protection in Kenyan commercial banks.
This was done in an effort to determine how much dispute resolution affects commercial banks' ability to provide effective consumer protection.
Methodology: The study focused on all the 87 COFEK employees and employed a descriptive research design.
Questionnaires were employed in the study to gather data. Both descriptive and inferential statistics were used in the data analysis. Statistical Package for Social Sciences (SPSS) version 22 was used for data analysis. Data was displayed using percentages, frequency tables, and relevant statistical abstracts.
Results: Most of the respondents were fairly aware of the dispute resolution activities carried out by the protection agency in commercial banks. The analysis of the data showed that dispute resolution had a significant coefficient (β=0.587; p-value = 0.000).
Conclusion: Dispute resolution has a statistically significant impact on protecting consumers. Therefore, COFEK should strengthen its conflict settlement procedures. In order to decrease the number of civil lawsuits brought by irate customers, it is recommended that chartered arbitrators be hired. In the end, this will lower the expenses of costly arbitration and increase client trust in the consumer protection organization, making it more relevant
Collections
- Journal Articles (BE) [339]
