- Introduction
- Damage in the relationship between client and banking intermediary: what to do
- Characteristics of the ABF
- Main advantages of going to a Banking and Financial Arbitrator
- ABF: is it an independent body?
- Is it advisable to turn to a Banking and Financial Arbitrator to settle out-of-court disputes?
- Application to the ABF: the role of Studio Cappuccio
Introduction
The Banking and Financial Arbitrator (also known by the acronym ABF) is a dispute resolution system between banks (or intermediaries) and their customersin the field of banking-financial transactions or services.
It was introduced by the Law No. 262 of 28 December 2005 (so-called savings law) that has amended the Consolidated Banking Actto which customers of banks and financial intermediaries can turn with a complaint in case of disputes.
You often hear about this organism, but you have a very tenuous knowledge about how it works and the protections it offers to citizens.
With a view to deepening this important figure, the professionals of Studio Cappuccio in Rome decided to produce an ad hoc article dedicated to the ABF.
Damage in the relationship between client and banking intermediary: what to do
If a bank customer feels aggrieved in his relationship with the banking intermediary, he has a number of possibilities at his disposal.
A first step, which we believe is indispensable, is to submit a complaint to the intermediary, who is obliged to reply within 30 days.
Should there be no response, or should they be deemed unsatisfactoryother options, which will have to be considered depending on the seriousness of the situation.
In this case:
- you can send a complaint to the Bank of Italywhich will urge the customer to resolve the issue that has arisen;
- can appeal directly to the Banking and Financial Arbitratorwhich will have the task of exposing itself and making a decision, relative to the individual case;
- if none of the above options are deemed useful, one can, as a last resort, resort to civil justice.
Characteristics of the ABF
The Arbitro Bancario Finanziario is an out-of-court dispute resolution system.
This means that you don't have to go to court to use his workand resolves difficult/contentious situations between banks and customers who feel they have been wronged or have experienced a difficulty in their relationship with it.
It is, therefore, an alternative system to the judicial system. quick, simple and inexpensive.
Just think that an appeal to the ABF costs just EUR 20!
But how does it work?
The perspective of a Financial Banking Arbitrator's action is to 'act in accordance with the law'.i.e. making a decision as to who is right and who is wrong, within a confrontation between intermediary and client.
Main advantages of going to a Banking and Financial Arbitrator
But is it really convenient to turn to a body like the ABF?
The main advantages stem precisely from the simplicity and speed of decision-making processes, as well as from the effectiveness of protection, guaranteed by the decisions of the Banking and Financial Arbitrator.
Please note that the decision-making procedures carried out at the seat of the Banking and Financial Arbitrator are realised without the need to follow an actual procedure.
In practice, there are no real formalitiesthis means that the person who decides to resort to the ABF will not have the burden of being assisted by a lawyer.
Access costs and timing
Let us not forget the aforementioned costs of access, which are particularly convenient when one thinks of the costs one may face if one decides to go to court.
We are talking about only 20 euro, with no need for legal assistance and a very short waiting time for a reply.
If we want to apply for a contribution from the Banking and Financial Arbitrator, we only need to send an application by filling in a form on the ABF website.
Banking and Financial Arbitrator: is it an independent body?
One of the most interesting features of the Banking and Financial Arbitrator lies in its be an independent body.
This is possible, as the independence of the role is ensured:
- the procedure for appointing the members of the various panels of the ABF;
- by the requirements of impartiality, which are forcibly demanded of the various components.
In particular, we recall that each board consists of five members, three of whom are appointed by the Bank of Italy (as independent supervisory authority).
The Bank of Italy itself has been assigned a task to support the role played by the Arbitro Bancario Finanziario.
In this case, we are referring to the creation of a number of technical secretariats, which support the work of each college.
Physical locations where to apply to the Banking and Financial Arbitrator
As mentioned, there is the possibility of turn to actual physical offices of the Banking and Financial Arbitrator.
These were set up within the Bank of Italy offices in the following cities: Bari, Bologna, Milan, Naples, Palermo, Rome and Turin.
The opening of several locations across the country is necessary for the following reasons:
- increase responsiveness to citizens;
- reduce the average time for decision-making by the colleges.
This is useful, as appeals to the colleges have increased considerably over the years, now reaching four-figure numbers every year!
Is it advisable to turn to a Banking and Financial Arbitrator to settle out-of-court disputes?
But is it really worth turning to a Financial Banking Arbitrator?
According to the latest available data, the winning percentage for customers is 48% of cases.
To these results must be added a 17% relating to waivers where banks and customers probably reached an agreement.
Consequently, if we were to add up the percentages, there would be about a 2 in 3 chance of coming out of this litigation with an outcome favourable to us:
- as we obtained a positive opinion from the ABF;
- or because we came to an agreement by other means.
If the Banking and Financial Arbitrator makes a decision, is this to be considered binding on the financial intermediary?
Not really.
There is no constraint, as when we go for a judge's opinion, but however, intermediaries respect and comply with what is decided by the ABF in almost all cases.
This is because their non-compliance would be made public, leading to very significant image damage.
Consequently, even if there is no legal constraint, if a decision is made by the Banking and Financial Arbitrator, it is usually respected by both parties.
Application to the Banking and Financial Arbitrator: the role of Studio Cappuccio
Do you have a problem or dispute with a bank that needs to be assessed by an impartial body, such as the ABF?
Studio Cappuccio in Rome also deals with applications to the Arbitro Bancario Finanziario.
To arrive prepared for the appointment, our firm guarantees the drafting of extremely detailed technical advice, which is very useful in order to have, in extrajudicial (but also judicial) proceedings, an extra weapon, useful for obtaining a positive result.
Our forensic accountants are specialised experts in banking litigation. We have been helping as technicians for about 12 years:
- lawyersto win their banking law cases;
- judges: to shed light on banking issues in civil and criminal cases;
- private citizens and companies to identify any critical issues in their current account, mortgage and leasing contracts.
Our team of experts stands out for its high level of expertise in the field of derivative contracts, bank appraisals, anatocism (especially in theFrench-style amortisation).
In addition to these professional activities, we also carry out activities to disseminate the culture of banking litigation in particular through:
- books;
- courses;
- jurisprudential update mailing list.
Would you like to take recourse to these mediation institutions?
Fill in the following contact form to get to know us.
Together we will check whether there are grounds for recourse to the Banking and Financial Arbitrator, providing all the explanations for proceeding with the appeal.
