Disputes in competence of the Financial Arbitrator

Whether the Financial Arbitrator is or is not competent to decide a specific dispute depends on the circumstances of that case. Please be aware that the below mentioned examples shall not constitute an exhaustive or definite list of cases in competence of the Financial Arbitrator, nevertheless it may help you to get a basic understanding of the competence of the Financial Arbitrator.

Disputes arising in connection with payment services, electronic money and money exchanges

The Financial Arbitrator is authorized to decide disputes arising in connection with providing a payment service, or issuing and reverse exchange of the electronic money, even if the dispute does not concern the payment service or electronic money itself.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • malfunction of the ATM – not issuing the money,
  • malfunction of the ATM – money debited from the account twice (or several times),
  • money presented to the bank by client via ATM or personally not credited to the account,
  • ATM withdrawal made by a third party (misuse of a credit card),
  • payment with a credit card - money debited from the account twice (or several times),
  • payment with a credit card made by a third party (misuse of a credit card),
  • delayed execution of a payment transaction,
  • non-execution of a payment transaction initiated by the payee,
  • incorrect exchange rate used for a cross-border wire transfer,
  • incorrect fee for providing a payment service,
  • payment transaction made without a consent of the payment service user.

The Financial Arbitrator is authorized to decide disputes arising in connection with money exchanges.

Disputes arising in connection with consumer credits

The Financial Arbitrator is authorized to decide disputes arising in connection with offering, providing or mediation of the consumer credit by a creditor or credit intermediary.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • incorrect amount of compensation for early repayment,
  • validity of the withdrawal of the credit agreement,
  • validity of declaring the whole credit payable,
  • fees following from the credit agreement,
  • fees following from the intermediary agreement,
  • invalidity of the credit agreement due to malperformance of the assessment of creditworthiness of the debtor,
  • invalidity of the provision of the credit agreement (e.g. a provision on penalty for non-compliance with the agreement),
  • right to a discount interest rate set by the Czech National bank (after being claimed with the creditor). 

Disputes arising in connection with collective investment and life insurance

The Financial Arbitrator is authorized to decide disputes between a consumer and person managing or administering a collective investment fund, or offering an investment in the collective investment fund or in a comparable foreign investment fund arising in connection with managing or administering the collective investment fund, or with offering an investment in the collective investment fund or a comparable foreign investment fund.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • settlement following the purchase/redemption/exchange of units,
  • purchase/redemption/exchange price of units,
  • malperformance of the demand of the unit-holder to purchase/redeem/exchange units,
  • fee for purchase/redemption/exchange of units,
  • damage caused in connection with collective investment counselling,
  • failure to perform information duties.

The Financial Arbitrator is authorized to decide disputes arising in connection with the insurance of an individual for the case of death, reaching certain age or date of the end of the insurance, or for the case of other situation concerning a change of personal status of such individual.

Examples of heard disputes:

Whether the Financial Arbitrator is or is not competent to decide a specific dispute depends on the circumstances of that case. Please be aware that the below mentioned examples shall not constitute an exhaustive or definite list of cases in competence of the Financial Arbitrator, nevertheless it may help you to get a basic understanding of the competence of the Financial Arbitrator.

Disputes arising in connection with payment services, electronic money and money exchanges

The Financial Arbitrator is authorized to decide disputes arising in connection with providing a payment service, or issuing and reverse exchange of the electronic money, even if the dispute does not concern the payment service or electronic money itself.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • malfunction of the ATM – not issuing the money,
  • malfunction of the ATM – money debited from the account twice (or several times),
  • money presented to the bank by client via ATM or personally not credited to the account,
  • ATM withdrawal made by a third party (misuse of a credit card),
  • payment with a credit card - money debited from the account twice (or several times),
  • payment with a credit card made by a third party (misuse of a credit card),
  • delayed execution of a payment transaction,
  • non-execution of a payment transaction initiated by the payee,
  • incorrect exchange rate used for a cross-border wire transfer,
  • incorrect fee for providing a payment service,
  • payment transaction made without a consent of the payment service user.

The Financial Arbitrator is authorized to decide disputes arising in connection with money exchanges.

Disputes arising in connection with consumer credits

The Financial Arbitrator is authorized to decide disputes arising in connection with offering, providing or mediation of the consumer credit by a creditor or credit intermediary.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • incorrect amount of compensation for early repayment,
  • validity of the withdrawal of the credit agreement,
  • validity of declaring the whole credit payable,
  • fees following from the credit agreement,
  • fees following from the intermediary agreement,
  • invalidity of the credit agreement due to malperformance of the assessment of creditworthiness of the debtor,
  • invalidity of the provision of the credit agreement (e.g. a provision on penalty for non-compliance with the agreement),
  • right to a discount interest rate set by the Czech National bank (after being claimed with the creditor). 

Disputes arising in connection with collective investment and life insurance

The Financial Arbitrator is authorized to decide disputes between a consumer and person managing or administering a collective investment fund, or offering an investment in the collective investment fund or in a comparable foreign investment fund arising in connection with managing or administering the collective investment fund, or with offering an investment in the collective investment fund or a comparable foreign investment fund.

The Financial Arbitrator is authorized to decide e.g. the following disputes:

  • settlement following the purchase/redemption/exchange of units,
  • purchase/redemption/exchange price of units,
  • malperformance of the demand of the unit-holder to purchase/redeem/exchange units,
  • fee for purchase/redemption/exchange of units,
  • damage caused in connection with collective investment counselling,
  • failure to perform information duties.

The Financial Arbitrator is authorized to decide disputes arising in connection with the insurance of an individual for the case of death, reaching certain age or date of the end of the insurance, or for the case of other situation concerning a change of personal status of such individual.

Examples of heard disputes:

ATM withdrawal made with a stolen credit card

While the complainant was shopping in the mall someone stole a wallet including the credit card from her. The complainant notified the bank and the police of the theft immediately. Subsequently, she found out using her internet banking that before the...

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Malfunction of the ATM

The complainant asserted in the complaint that he hadn´t obtained the amount of CZK 5.000 from the ATM as requested. To prove that the payment transaction had been made correctly the institution submitted the ATM journal, i.e. the record of all the...

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Account blocked due to the enforcement of judgement including the...

NOTE: if a party who lost court proceedings does not comply with the judgement voluntarily the judgement may be enforced by a court-appointed bailiff who may issue an order to seize money deposited on that party´s bank account up to the due amount. In...

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Ungrounded penalty for non-compliance with the credit agreement

The complainant asserted that on 3th April 2012 the creditor had sent him a reminder to pay an instalment of CZK 329 due in March + CZK 100 for sending the reminder, i.e. CZK 429 in total. The complainant paid the instalment on 12th April 2012. Although...

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