In collaboration with the Federation of Cooperatives in the Episcopal Diocese of Northern Luzon (FEDCO-EDNL), the Cooperative Development Authority (CDA), through its Credit Surety Fund Service (CSFS), conducted an informative training session on the Financial Products and Services Consumers Protection Act (R.A. 11765) on March 26, 2025, in Tabuk City, Kalinga. The training aimed to enhance the understanding of cooperative officers and management staff regarding the key provisions of R.A. 11765 and other relevant CDA issuances.
Additionally, the event served as an opportunity for the 33 participating cooperatives in Kalinga to assess and ensure that their financial product policies align with the requirements of R.A. 11765 and the applicable CDA regulations. This initiative is part of the CDA’s ongoing commitment to supporting its regulated entities in maintaining compliance with the provisions of R.A. 11765 and its Implementing Rules and Regulations, thereby promoting the protection of consumers and the sustainable development of cooperatives.
During the activity, Atty. Elizabeth O. Batonan, CSFS Deputy Administrator, kicked off the session by defining essential concepts related to R.A. 11765. She provided a thorough overview of the law’s scope, particularly emphasizing the roles and responsibilities of CDA-regulated entities (CDARES), the CDA’s role as a financial regulator, and the enforcement of relevant regulations. Atty. Batonan also shed light on the critical provisions of CDA Memorandum Circular 2024-07, specifically in relation to financial products, with a focus on the treatment of interest rates. She stressed the importance of full disclosure and transparency, underscoring the need for cooperatives to uphold these principles in order to ensure consumer protection and foster trust in financial dealings. Lastly, she gave a comprehensive discussion on the handling of complaints in relation to R.A. 11765, emphasizing the mechanisms in place for consumer redress and cooperative accountability.
On the other hand, Ms. Jo Ann C. Gamboa, Chief of the CSFS – Inspection and Examination Division (IED), delivered an in-depth discussion on CDA Memorandum Circular 2024-22, which outlines the guidelines for preparing and submitting a Gap Analysis and Board-Approved Action Plan in compliance with the Implementing Rules and Regulations (IRR) of R.A. 11765. In her presentation, Ms. Gamboa explained how to effectively conduct a gap analysis, a process designed to evaluate the current consumer protection services of CDARES in comparison to the provisions set forth in the IRR of R.A. 11765. This process ensures that cooperatives are meeting the necessary standards for consumer protection and regulatory compliance, ultimately helping to strengthen the cooperative sector’s integrity and consumer trust.
Prior to this training, Atty. Batonan and Chief Gamboa, along with CDA-CAR Extension Office personnel, also attended the organizational meeting for the proposed Tabuk City Credit Surety Fund Cooperative. This meeting marked an important next step in the formal establishment of the Credit Surety Fund Cooperative in the province of Kalinga. The session provided an opportunity for stakeholders to discuss the cooperative’s structure, objectives, and the processes involved in its formation, reinforcing the CDA’s continued efforts to promote financial inclusion and support the cooperative sector in the region. – MEEM
