An Analysis of Consumer Protection in the Financial Service in Iraq: Consumer Loan Contract

Abstract

Recently, the contract law is the basis of any economic system worldwide. As such, to which degree the Iraq laws are perfect for protected consumers from unfair terms between formal and informal institutions. In this regard, all relevant legal agreements inadequate due to weakness of the legislative and institutional role in enacting and amend the consumer protection laws. Therefore, consumers who are hunted by the unfair terms in loan contracts are calling the Iraqi lawmakers to act positively in order to parallel the developments of other countries in dealing with unfair terms in consumer loan contracts. It is time for Iraq to offer a complete regime of law for consumer protection due to the weaker party must be protected from deception and fraud that harm their interests. This paper examined the adequacy of relevant legal materials by critical review and analysis the problems underlying consumer protection institution and the statutory provisions in Iraq that governing the consumer protection from unfair terms in a standard form loan contract. By adopting pure legal research methodology, the present paper emphasized that the Iraqi consumer protection organization (Civil law 1951, Consumer Protection Law 2010 and consumer institutions) lacks ingredients of the business to consumer (B2C) transactions. Also, unfair terms in the consumer loan contracts are essential issues that must be considered by the government.

Keywords: Consumer protection, unfair terms; Standard form, Iraqi law, Loan Contract.