Republic of Bulgaria : Alternative Dispute Resolution for Financial Services Options

Republic of Bulgaria : Alternative Dispute Resolution for Financial Services Options

The objective of this technical note is to evaluate the existing legal, regulatory and institutional framework of financial Alternative dispute resolution body, for example an ombudsman (ADR) mechanisms in Bulgaria, and to present the authorities with options for reform and improvement. There is a need to further strengthen and reform the existing financial ADR framework in Bulgaria. Fortifying the design and structure of financial ADR mechanisms is an important step to increase currently low levels of consumer trust in financial services. In addition, the implementation of the recently approved European Union (EU) Directive on ADR will require a significant amount of restructuring and reorganization of the existing ADR mechanisms in Bulgaria in order to be compliant with the new required standards. An ADR will not be a success unless consumers can be confident that financial services providers will take part and will follow decisions in favor of the consumer. Bearing in mind the Bulgarian context and the limitations imposed by the Bulgarian constitution, it is recommended to opt for a compulsory and binding ADR structure, but with a possibility to appeal to court. Moreover, financial services providers should bear the first-line responsibility for resolving complaints and be subject to similar complaints handling rules and procedures. In order to be successful, the new arrangements for financial ADR need to command respect from financial services consumers, financial services providers and the authorities. Where the views of stakeholders currently diverge, some compromise will be necessary in order to create a coherent and workable system.

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Bibliographic Details
Main Author: World Bank
Format: Other Financial Sector Study biblioteca
Language:English
en_US
Published: Washington, DC 2013-06
Subjects:ABUSE, ACCOUNTABILITY, ADMINISTRATIVE COURT, ADR, ALTERNATIVE DISPUTE RESOLUTION, ARBITRATION, ARBITRATION COURT, BANK OF SPAIN, BANK SUPERVISION, BANKING PRODUCTS, BANKING SERVICE, BANKS, BENEFICIARIES, BEST PRACTICE, BINDING DECISION, BINDING DECISIONS, CHECKS, CLAIM, CODE OF CONDUCT, CONFIDENCE, CONFLICTS OF INTEREST, CONSOLIDATION, CONSULTATION PROCESS, CONSUMER ADVICE, CONSUMER COMPLAINT, CONSUMER COMPLAINTS, CONSUMER CREDIT, CONSUMER GROUPS, CONSUMER KNOWLEDGE, CONSUMER PROTECTION, CONSUMER PROTECTION LAW, CONSUMER RIGHTS, CONSUMERS, CONTRACTUAL DISPUTES, CONTRIBUTIONS, CREDIT CARDS, CREDIT INSTITUTIONS, CREDIT PROVIDERS, CURRENCY, DEPOSITS, ECONOMIC CIRCUMSTANCES, FINANCIAL ACCOUNTS, FINANCIAL CONSUMER, FINANCIAL CONSUMERS, FINANCIAL CRISIS, FINANCIAL EDUCATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL LITERACY, FINANCIAL MARKET, FINANCIAL MATTERS, FINANCIAL REGULATOR, FINANCIAL REGULATORS, FINANCIAL SECTOR, FINANCIAL SECTORS, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDER, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SERVICES INDUSTRY, FINANCIAL SERVICES PROVIDER, FINANCIAL SERVICES PROVIDERS, FINANCIAL SYSTEM, HEALTH INSURANCE, IMPARTIAL INFORMATION, INCOME, INFORMAL PROCEDURE, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL FRAMEWORK, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INTEREST RATES, INVESTIGATION, INVESTIGATOR, INVESTMENT CAPITAL, INVESTMENT COMPANIES, INVESTMENT PRODUCTS, JUDGE, JUDGES, JUDGMENT, JUDICIAL INDEPENDENCE, JUDICIAL RESOLUTION, JURISDICTION, JUSTICE, LAWS, LAWYER, LAWYERS, LEASES, LEGAL FRAMEWORK, LEGAL POWERS, LEGAL PROCEDURE, LEGAL REQUIREMENTS, LEGISLATION, LICENSE, LICENSES, MARKET SHARE, MINISTERS, MORTGAGES, NATIONAL BANK, NATIONAL LAWS, NET ASSETS, PAYMENT SYSTEMS, PENSION, PENSION COMPANIES, PENSION FUND, PENSIONS, PRIVATE PENSIONS, PROFESSIONAL ASSOCIATIONS, REASONABLE TIME, REGULATORY FRAMEWORK, REGULATORY RULES, REORGANIZATION, RESPONSIBILITIES, SALARY, SANCTIONS, SAVINGS, SECURITIES, SETTLEMENT, SOCIAL SECURITY, SOURCE OF INFORMATION, STAKEHOLDER, STAKEHOLDERS, STATE GOVERNMENTS, THIRD PARTIES, TITLE, TOTAL COST, TRANSPARENCY, TRANSPARENT PROCEDURES, UNFAIR TRADE, WAIVER,
Online Access:http://documents.worldbank.org/curated/en/2013/06/18019165/bulgaria-alternative-dispute-resolution-financial-services-options-paper
http://hdl.handle.net/10986/16060
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Summary:The objective of this technical note is to evaluate the existing legal, regulatory and institutional framework of financial Alternative dispute resolution body, for example an ombudsman (ADR) mechanisms in Bulgaria, and to present the authorities with options for reform and improvement. There is a need to further strengthen and reform the existing financial ADR framework in Bulgaria. Fortifying the design and structure of financial ADR mechanisms is an important step to increase currently low levels of consumer trust in financial services. In addition, the implementation of the recently approved European Union (EU) Directive on ADR will require a significant amount of restructuring and reorganization of the existing ADR mechanisms in Bulgaria in order to be compliant with the new required standards. An ADR will not be a success unless consumers can be confident that financial services providers will take part and will follow decisions in favor of the consumer. Bearing in mind the Bulgarian context and the limitations imposed by the Bulgarian constitution, it is recommended to opt for a compulsory and binding ADR structure, but with a possibility to appeal to court. Moreover, financial services providers should bear the first-line responsibility for resolving complaints and be subject to similar complaints handling rules and procedures. In order to be successful, the new arrangements for financial ADR need to command respect from financial services consumers, financial services providers and the authorities. Where the views of stakeholders currently diverge, some compromise will be necessary in order to create a coherent and workable system.

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