A new player in the field of financial affairs: the financial consumer

Abstract

As a member of the EU, Hungary has to implement community norms into its legal order. The EU regulations have reached some basic institutions of the private and the business laws of the member states. The rules of consumer protection constitute the most important driving force behind the development. The current definition of the consumer intends to emphasize its weaker position in a contractual relationship. This definition seems to be in need of further specification in particular domains of transaction such as financial affairs.Recent financial scandals in Hungary, such as the case of the foreign currency loans and the bankruptcy of broker-houses and banks call attention to the need of providing special protection to financial consumers as well. In this paper, I would like to examine, whether and to what extent the concept of the financial consumer is taken into consideration in the current Hungarian economic and legal literature, and what steps should be taken to restore the balace between financial service providers and consumers. I think that the introduction of the concept would help to disseminate knowledge about financial culture, and prevent further malpractice.