Financial Banking Arbitrator: boom in appeals, here's how it works

More and more Italians are resorting toFinancial Banking Arbitrator (ABF) the system created by the Bank of Italy to resolve disputes between banks and financial intermediaries and their customers. It is an alternative tool to ordinary justice and compared to normal lawsuits it allows you to save time and costs.

According to the latest Bank of Italy report on the activity of the ABF, in 2017 appeals increased by 42%, reaching 30.644. The surge is partly due to the opening of new colleges in Bari, Bologna, Palermo and Turin, which have joined those in Milan, Naples and Rome.

The vast majority of disputes (73%) are about financing against employee loans salary or pension, in particular the request for reimbursement of expenses incurred by the applicants and not accrued in the event of early termination of the relationship.

Of the total appeals, nearly half were accepted (47,3%) and just under a quarter were rejected (23,2%). The remaining share (29,5%) concerns cases that have been resolved with an agreement between the parties before the final pronouncement. In all, the applicants were recognized about 19 million euro.

The expected budget for this year it is not very different: in the first quarter of 2018 almost 8 thousand appeals were filed, a number similar to that of the same period of 2017.

For those who want to appeal to the Financial Banking Arbitrator, here is a brief guide taken from the Report of the Bank of Italy.

1) WHAT IS THE FINANCIAL BANKING ARBITRATOR?

• • The Arbitrator is independent and impartial with respect to the Bank of Italy.
  • You do not need legal assistance or the help of other professionals.
  • The decisions of the Arbitrator, although not binding, are respected in almost all cases; any defaults are disclosed on the ABF website.
  • The arbitrator's pronouncements are not sentences: the parties, if they are not satisfied with the decision, can in any case turn to the judge. Furthermore, those who want to initiate a civil case can therefore make use of the ABF procedure as an alternative to mediation.
  • The decision is taken on the basis of the documentation presented by the parties. Other means of proof are not admitted, such as the official technical consultancy or the hearing of the parties.
  • There is no means of appeal against the rulings and therefore it is not possible to review the merits. The procedure only provides for the possibility of requesting any correction of the decision in the presence of omissions, material or calculation errors.

2) AGAINST WHO CAN YOU APPLY?

• The banks;
• the financial intermediaries entered in the register pursuant to art. 106 of Consolidated Banking Act (TUB);
• credit lines pursuant to art. 112 TUB;
• payment institutions (PI);
• electronic money institutions (Imel);
• Poste Italiane spa in relation to the activity of BancoPosta.

3) WHAT CAN YOU ASK THE FINANCIAL BANKING ARBITRATOR?

The Arbitrator decides on disputes relating to banking and financial operations and services (for example, current accounts, mortgages or personal loans), including payment services.

You can ask the ABF:

• the recognition of a sum of money for an amount not exceeding 100.000 euros;
• the verification of rights, obligations and faculties (for example the right to receive transparency documentation or the right to obtain the cancellation of a mortgage after the extinction of a loan), in this case with no amount limits.

4) IN WHICH CASES IS IT NOT POSSIBLE TO APPLY TO AFB?

The Arbitrator cannot decide whether the dispute concerns:

• services or activities for investment purposes (e.g. trading or placement of securities such as shares or bonds, investment advice, asset management). For investment services, theArbitrator for Financial Disputes (ACF);
• goods or services other than banking and financial ones;
• transactions or conduct prior to January 2009, XNUMX;
• matters already submitted to the Judicial Authority or already being examined by arbitrators or conciliators.

 5) WHAT TO DO BEFORE LODGING AN APPEAL?

It is possible to appeal to the Arbitrator only after having submitted a written complaint to the intermediary on the same issue. If the intermediary does not respond within 30 days or if the response is not satisfactory, the customer can contact the ABF within 12 months of the date of the complaint.

It is advisable to collect all the useful documentation in support of the application, as the ABF decides only on the basis of the documents received.

6) HOW MUCH DOES AN APPLICATION COST?

Before submitting an appeal, the customer must pay 20 euros as a contribution to the costs of the procedure.

In the event of total or partial acceptance, the intermediary is required to reimburse this sum to the customer, as well as pay the Bank of Italy a contribution of 200 euros.

7) HOW IS THE APPEAL SUBMITTED?

Online, through a dedicated portal: just access it by registering in the reserved area of ​​the ABF website and then submit the appeal by attaching the documentation. For details you can consult Complete guide to using the ABF Portal.

8) HOW LONG DOES IT TAKE TO PRONOUNCE?

After receiving the appeal, the intermediary has 45 days to present their counterarguments.

The Board of the AFB must rule on the appeal within 60 days, but in some cases the term can be suspended up to a maximum of a further 60 days. Another 30 days are foreseen to communicate to the parties the complete statement of the motivation.

In any case, the procedure cannot last more than 270 days (90 for the completion of the file and 90 for the conclusion of the procedure, which can be extended by another 90 in case of complexity).

In 2017, the overall average duration of the process (from the receipt of the appeal to the communication of the decision to the parties) was 294 days, which drops to 261 if the periods of suspension are not considered.