Electronic Funds Transfer : and the Case for Consumer Protection in Ethiopia

Abstract

Electronic Funds Transfer (EFT) whereby funds transfer electronically from the account of a payer to a payee significantly contributes to the efficiency and safety of national payment systems and thereby, national economy. States regulate EFT to achieve a number of objectives including protection of consumers. The National Payment System Proclamation of Ethiopia regulates Electronic Funds Transfer. In this writing, I evaluate consumer protection concerns that arise in EFT contracts between a consumer and a financial institution on the basis of the Proclamation and other relevant laws of Ethiopia. I have used relevant legislation of the U.S. and the European Union to elaborate issues and to draw lessons from their experiences. The findings of the thesis reveal that protection of consumers of Ethiopia in EFT is considerably inadequate and is mainly characterized by legal uncertainty. Based on the findings, I recommend for comprehensive consumer protection legislation specifically applicable to Electronic Funds Transfer. The thesis contributes for any legislative and regulatory measures taken on the matter.