Dispute resolution in the area of consumer credit

Competence of the Financial Arbitrator

As of 1 July 2011 the Financial Arbitrator has been competent to decide disputes in the area of consumer credits pursuant to Sec. 1 Par. 1 letter d) of the Act No. 229/2002 Coll., on Financial Arbitrator, as amended.

In this area the Financial Arbitrator shall decide disputes (subject to further conditions set up by the Financial Arbitrator Act or other legislation) between a consumer and

a) creditor, or

b) intermediary.

It is recommended to use a Complaint Filing Tutorial of a complaint form to file a complaint.



As of 1 January 2011 the Act No. 145/2010 Coll., on Consumer Credit and on amendments to other acts, as amended, replaced the legislation formerly governing the area. The Act was adopted to implement the Directive 2008/48/EC of the European Parliament and of the Council and, compared to the rules in force before its adoption, it reinforced the rights of the consumers. The list of applicable legislation is available here.

The Act on Consumer Credit shall NOT APPLY to any deferred payment, loan, credit or similar financial service:

a) provided for the purposes of housing where the claim is secured by a pledge on an immovable property and the purpose of which is to

1. acquire property rights to the immovable property, settle the property rights to the immovable property, or build the immovable property,

2. pay for the transfer of the rights and obligations of the member in the housing association, or for acquiring ownership in other legal person, or for acquiring a right to use a flat or a house,

3. remodel the building or connect it to a public network,

4. pay the costs of getting the loan, credit or similar financial service for the purposes described in points 1 to 3, or

5. repay the loan, credit or similar financial service provided for the purposes described in points 1 to 4, or 5,

b)   granted by a hiring or leasing agreement where no right or obligation to purchase the object of the agreement after a certain period of time has been agreed,

c) granted free of interest, or without any other charges,

d) granted in the form of continuous providing of a service or supplying of goods of a specific kind that the consumer may pay for in instalments during the period of providing,

e) involving a total amount of credit less than CZK 5.000 or more than CZK 1.880.000; the amount of CZK 5.000 is considered to be reached also where the same creditor and debtor conclude several agreements within a period of 12 months with the same or similar purpose; the consumer credit agreement shall be considered the agreement through which the total amount of CZK 5.000 is reached or exceeded, as well as all the subsequent agreements concluded in the above mentioned period,

f) granted by an employer to his employees as a secondary activity at annual percentage rates of charge lower than those prevailing on the market and which are not offered to the public generally,

g) agreed with a security trader or a bank where its purpose is to perform an operation with an investment instrument where the security trader or the bank is involved in the operation,

h) granted as a free of charge deferral of payment of an existing debt,

i) granted to a restricted public under a statutory provision with a general interest purpose, and at lower interest rates than those prevailing on the market, or free of interest,

j) upon the granting of which the consumer is requested to deposit an item as security in the creditor's safe-keeping and where the liability of the consumer is strictly limited to that pledged item, or

k) that constitutes the outcome of a settlement reached in court or before another statutory authority.

Other legislation relevant for the decision-making process of the Financial Arbitrator in the area of consumer credit: Act No. 321/2001 Coll., on Certain Conditions for Negotiation of the Consumer Credit and on Amendments to the Act No. 64/1986 Coll., Act No. 89/2012 Coll., Civil Code, Government Regulation No. 351/2013 Coll. Laying Down the Amount of Interest on Late Payment and Costs Associated with the Claim, the Remuneration of the Liquidator, the Liquidation Administrator and the Member of the Body of a Legal Entity Appointed by Court, and Regulating Certain Issues of the Commercial Bulletin and the Public Registers of Legal Entities and Individuals, etc.

It is recommended to use a Complaint Filing Tutorial of a complaint form to file a complaint.

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