BSP MORB Section 1001 Financial Consumer Protection Framework

Duration 3 days – 21 hrs

 

Overview 

 

This course equips banking teams in the Philippines with a practical, implementation-focused understanding of the BSP Financial Consumer Protection Framework under MORB Section 1001 / Part Ten and its enabling bases under the Financial Products and Services Consumer Protection Act (RA 11765). It also deep-dives into credit card billing and disclosure controls—covering billing cycle governance, statement and fee transparency, interest/finance charge rules, customer communication requirements, and complaint/dispute handling—aligned with BSP regulations for credit card operations and consumer assistance mechanisms.

 

Objectives 

 

•  Explain and apply the financial consumer rights and BSP expectations under RA 11765 and BSP’s consumer protection regulations.
• Translate BSP consumer protection requirements into bank controls: governance, monitoring, training, third-party oversight, and issue management. 
• Design or enhance a Consumer Protection Risk Management System (CPRMS) and consumer assistance/complaints operating model aligned with BSP expectations. 
• Implement compliant credit card billing and disclosure practices (billing cycle, statement integrity, charges/fees transparency, and customer notices). 
• Apply BSP rules on interest/finance charges and customer notification requirements for credit card-related changes. 
• Set up an escalation-ready complaints pathway aligned with FCPAM (BSI-level) and BSP-CAM (second-level) procedures.

 

Audience  

• Compliance / Regulatory Affairs / Legal
• Risk Management (Operational Risk, Conduct Risk, ORM)
• Cards Business / Credit Card Operations / Billing & Collections
• Customer Experience / Contact Center / Complaints Handling Teams
• Product Managers (Retail, Cards, Digital Channels)
• Internal Audit / Quality Assurance
• Third-party / Vendor management teams supporting card servicing

 

Pre- requisites   

• Basic understanding of banking products and customer servicing operations

• Familiarity with credit card lifecycle (application, issuance, billing cycles, payments, disputes)

• Helpful (not required): prior exposure to BSP circulars / MORB navigation and internal policy writing

 

Course Outline 

 

BSP MORB 1001 Consumer Protection Framework (Governance + Controls)

 

Module 1: Regulatory Context & Key Concepts

• BSP financial consumer protection direction and scope
• RA 11765: policy intent + core consumer rights (fair treatment, transparency, fraud protection, data privacy, complaint redress) 
• BSP Part Ten / MORB Section 1001: how the framework is applied to BSIs and products 

 

Module 2: Consumer Protection Operating Model (What BSP Expects to See)

• “Customer outcomes” and market conduct expectations
• Product governance: product design, suitability/affordability thinking, and controls for vulnerable segments
• Third-party and outsourcing considerations (what to enforce in vendor SLAs/monitoring)

 

Module 3: CPRMS — Consumer Protection Risk Management System (Build/Enhance)

• CPRMS components: governance, policies, processes, measurement, monitoring, mitigation 
• Roles and accountability: Board oversight & Senior Management responsibilities 
• Practical workshop:
  • Identify top consumer protection risks in your card business (fees, disclosures, collections conduct, disputes, fraud, data privacy)
  • Map risks → controls → evidence

 

Module 4: Standards of Conduct (Hands-on Controls)

• Transparency & disclosure: what “clear, accurate, understandable” means in practice
• Fair and equitable treatment across lifecycle (marketing → onboarding → servicing → collections)
• Effective recourse: channels, turnarounds, root-cause analysis, and reporting expectations 

 

Module 5: Complaints & Assistance Mechanisms

• FCPAM: first-level recourse inside the BSI
• BSP-CAM: second-level recourse; when and how complaints escalate 
• Minimum process design: intake → classification → investigation → response → closure → corrective actions
• Mini-workshop: draft a complaints SLA + escalation matrix for card billing disputes

 

Credit Card Billing Compliance Deep Dive (Credit Billing “100/1003” Focus)

 

Module 6: Credit Card Billing Fundamentals (Definitions + Controls)

• Billing cycle, statement cut-off, statement of account/billing statement concepts 
• What must be consistent and reconcilable: transactions, fees, interest, reversals, adjustments
• Payment posting and allocation controls (avoid unfair/unclear practices)

 

Module 7: Interest, Fees, Finance Charges, and Disclosures

• BSP rules on interest/finance charge caps and related controls (including installment and cash advance considerations) 
• Disclosure requirements: presenting the “full cost” clearly (fees, penalties, interest computation method) 
• Notice requirements for changes that affect customers (e.g., computation method/fees) 
• Workshop: build a Billing Disclosure Checklist (statement content + fee table + change notices)

 

Module 8: Billing Errors, Disputes, and Complaint Handling Playbooks

• Common dispute scenarios: unauthorized charges, duplicate postings, merchant disputes, installment disagreements, fee reversals
• Investigation workflow design: evidence gathering, timelines, communication templates, decisioning and goodwill adjustments
• Documentation and audit trail requirements (what regulators/audit will ask for)

 

Module 9: Monitoring, Reporting, and Internal Assurance

• KPIs for billing and complaints: response time, resolution time, repeat complaint rate, upheld vs rejected disputes, root causes
• Quality assurance controls for statements and notices
• Internal audit/testing approach: sampling methodology + red flags

 

Module 10: Capstone Exercise (Implementation Plan)

• Create a 30–60–90 day action plan:
  • Policies to update
  • Process gaps to close
  • Training and monitoring to deploy
  • Evidence pack to maintain for BSP exams