Bank Could Not Cooperate, Rid Five Million

The GFIC fined ABC Bank INC. HUF 5 million for refusing to cooperate with the Financial Arbitration Board. At the same time, the GFIC prohibited the Bank from engaging in grossly unlawful conduct.

Imposed a consumer protection fine

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The Good Financial Supervisory Authority (GFIC) imposed a consumer protection fine of HUF 5 million on ABC Bank INC. For non-compliance with the Financial Arbitration Board (FAB) in its conciliation procedure. The GFIC also forbade the Bank to continue its unlawful conduct. As the law clearly states, the financial service provider is obliged to cooperate with the FAB, but is not obliged to submit to the FAB decision. This is the first time a financial organization has been sanctioned by the GFIC for failing to co-operate with the FAB.

Granted financial consumers

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The Good Finance of the Republic of Hungary granted financial consumers the right to initiate proceedings of the Financial Arbitration Board of the GFIC in order to settle their disputes quickly and free of charge. Any financial service provider, including ABC Bank INC., May undermine this consumer right guaranteed by law. In the case of conduct that infringes or neglects consumer rights, the enforcer may expect severe sanctions from the GFIC.

Hearing to the financial organization

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Following a submission from a banking client, the FAB acting council issued a hearing to the financial organization and the client in July 2011. In connection with this, he requested ABC Bank INC. To submit a written statement within 8 days, in accordance with the law, on the lawfulness of the consumer’s claim, the circumstances of the case, the failure to resolve the consumer complaint, FAB and ensure your attendance at the hearing.

Legality of the consumer’s claim

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In its reply, ABC Bank INC. Stated that it would not make any statement regarding the legality of the consumer’s claim, the circumstances of the case, the failure to resolve the consumer complaint, make no settlement offer, participate in the hearing scheduled for FAB decision. Contrary to the written statement to the contrary, the financial organization submitted various documents at the hearing. However, the law provides 8 days to send a reply in order to allow a quick procedure in the consumer’s interest. This is how both the consumer and the FAB acting advisory board can prepare for the hearing, at which the FAB will make a decision. The behavior of ABC Bank has seriously hampered the acting advisory board in making decisions and enforcing consumer rights.