Moral damage and the lack of pedagogical character: an incentive for poor service provision by financial institutions

Abstract

In the last years, the poor service provision by financial institutions has caused significant losses to consumers. This study explores the difference between “moral damage” and “mere annoyance” as well as the trivialization of the pedagogical character of the indemnificationsin the context of consumer’s law, analizing how this difference influences the eligibility for compensation on lawsuits. The research founds itselfon the theories of Oliveira (2018), Melo (2012) and Santana (2014), that defend a pedagogical aproach in the damage reparation, encouraging ethic and responsible practices by the financial institutions. Using a critical analisis of laws and current practices, states out that the Consumer’s Defense Code, especially the 5^th article, supply a strong legal foundation for consumer protection, including measures such as free of charge juridic assistence and especialized prosecutors. The methods include the review of literature and lawsuits analisis, evincing the need of revision of the practice done by finantial institutions. The lack of pedagogical character on the repairs may encourage the poor service provision, impairing consumers and mining the trust on the financial market. The final considerations points that the adoption of a pedagogical aproach, as proposed by Oliveira, Mela and Santana, not only compensates the caused damages, but also promotes a more ethical and transparent envirionment, preventing future problems.