The ABF (Financial Banking Arbitrator) is an "out-of-court" tool that anyone with a complaint about banking services and payment instruments can access. It is a relatively new tool, active since 2009; it is an alternative to recourse to the judicial authority (which, as we know, can be long and rather expensive).
Three "colleges", which have offices in Rome, Milan, Naples (and are made up of members indicated by the Bank of Italy, by customers, by intermediaries) decide on appeals concerning banking and financial transactions and services (in cases where the amount requested is less than 100.000 euros). To use the ABF you pay only 20 euros (which will be returned to the customer if successful). You must have first sent a complaint to the intermediary.
How does it work?
Each panel examines the appeal presented by the citizen and the arguments supported by the intermediary and decides with a "pronunciation": it is therefore not a conciliation instrument. The parties are not obligated to perform. Up to now, however, the intermediaries have almost totally complied with the ABF's rulings (over 95%). This is both because there is a reputational risk for the intermediary (those who fail to comply are included in a list published by the Bank of Italy) and because the decisions are authoritative and legally founded. It is always possible to appeal to the judicial authority.
How many and which appeals?
Over 2014 appeals arrived before the ABF in 11.000: 43% more than the previous year. In the first half of 2015 they grew again by 12%. Savers more attentive to their rights or an increase in the level of alarm in relations between them and the banks?
Definitely more aware savers (unfortunately ex-post, but still not quite ex-nate), but also more conflict in bank/customer relationships in these years of crisis. The increase in appeals is perhaps also the effect of the success of the ABF, a sign of appreciation for an instrument that satisfies a need for justice that previously remained unexpressed with low costs and relatively short times (even if it is still small numbers compared to bank accounts, which are tens of millions). However, we also observe the growth of appeals that we could call "opportunistic", solicited by third parties, with the hope of benefiting from a share of any reimbursements decided. This reduces the system's ability to respond to customers' real problems.
Who's right?
In 67% of the cases in the last two years the outcome was favorable to the customers: in one third of the cases with a ruling by the ABF, in another third due to the intermediary's renunciation (cessation of the disputed matter). This demonstrates that the ABF is an effective protection tool because it also works as a deterrent to those intermediaries who are immediately aware that they have no possibility of proving their reasons.
What are the most addressed topics?
One of the most frequent issues is the salary and pension assignment. In several cases the object of the appeal was the amount to be repaid to the customer in the event of early repayment of the loan. The ABF argued that those that accrue over time are reimbursable but those preparatory to the concession are not. If the nature of a commission is not adequately explained in the contract, it must be considered fully accrued over time and therefore repaid in the event of early repayment of the loan.
Who Appears?
Campania and Lombardy are the regions where the highest number of appeals are presented in absolute values; if we relate them to the Campania and Lazio population, they become the regions with the most appeals.
How you do it?
You fill out a form
(https://www.orbitabancariofinanziario.it/ilRicorso/modulistica/modulo_ed.pdf) and you pay 20 euros…
