As financial markets develop and deepen,one of the key issues for a fair, open and efficient marketis effective consumer protection and financial literacy. TheEuropean Union takes the approach that an effective regimeof financial consumer protection should allow consumers tohave access to: sufficient information to make informeddecisions about their financial choices; cost-effectiverecourse mechanisms to redress violations of financialservice contracts; and programs of consumer education andfinancial literacy that empower them to understand theirfinancial rights and obligations. This review has found thatthe quality of consumer protection in financial services inCroatia has improved in recent years. In particular, theapproval of the 2007 Consumer Protection Act incorporatedmany of the EU Directives related to financial consumerprotection. In addition, the National Council on ConsumerProtection was established in 2008 to advise the Governmenton its national strategy for consumer protection in thecoming years. A nation-wide baseline survey of financialliteracy would provide useful information in designingprograms in financial education and consumer awareness. Aspioneered in the United Kingdom, financial literacy surveyscan identify which part of the population is most vulnerableto financial abuse. The baseline survey should be segmentedby age, gender, geographic area, household income, andformal education. After a period of three to five years, afollow-up survey could be done to evaluate the effectivenessof the programs of financial education and consumer awareness.
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