HE Congress of Deputies He approved the bill this Thursday to create the Financial Client Defense Authority. new organism who will undertake resolution management claims offered by customers banks, insurers and investment firms, among other financial companies. Once it starts, predictably next yearThe new institution is destined to revolutionize. the current system management of these complaints, shortcomings In recent years, cases involving mortgaged land clauses have led to court crashes.
What is the Financial Client Defense Authority?
This Governing Authority for the Defense of Financial Clients will be one new Public institution that will assume the receivables of customers that have been submitted to the Bank of Spain to date, the National Securities Market Commission (CNMV) and the General Directorate of the Bank of Spain. Insurance and Pension Funds. But in addition to this, it will also be able to prevail in areas that have not been covered so far by these bodies. consumer loans awarded by unregulated lenders Bank of Spain or crypto assets. Also on the allegations without economic content tangible, such as the refusal of a basic payment account (where concessions are mandatory for banks to make concessions to vulnerable groups except in high-value situations) or violations of good practice rules such as mortgages. they can go to him individuals, freelancers and SMEsBut not big companies.
Will their opinions be binding on institutions?
This biggest innovation What the new body brings is that its decisions binding for assets (not for customers) for requests under 20.000 Euro. This represents a big change because the views of claims services Not Bank of Spain, CNMV and Segurosthis is them ignored in very relevant percentages by financial companies. Of course, customers and companies must comply with the constitutional principle of effective judicial protection. go to civil courts If they do not agree with the authority. However, the opinions of the institution will be taken into account. expert report and the Government believes that this will make the judges tend to agree with him.
What will it cost to claimants and how will it be financed?
Going to the new body will be free for customers financial, as well they won’t need a lawyer nor can use lawyers and volunteers standard format filing of claims. This companiesinstead they will have to to finance. They would pay in the first place 250 Euros per request taken against. However, this tax created legal doubts and left its place to a system that mostly penalized the institutions that declared against it. Like this 40% of operating cost will be distributed proportionally to the number of settled receivables of each financial asset according to the total number of resolved claims. remaining 60% will be distributed proportionally to the number of opinions in favor of the plaintiffs Each organization based on the total number of decisions in favor of customers.
What kind of compensation and sanctions do you foresee for institutions and customers?
authority, companies give back to those affected Quantities demanded – wholly or partially. cases no amount requested may apply compensation. 50 and 2.000 Euros. In addition, to the members of the board of directors and managers of organizations that do not comply with their binding decisions, 250,000 Euros (minor violations) or million euros (serious crimes). In the case of companies in serious cases fines can be up to 2% of turnover and the ceiling two million eurosand 1% light, maximum 500.000 Euros. Same way, customers those who repeatedly make claims that are unacceptable because they are “clearly unfounded” Penalized by 200, 300, 400 or 500 Euros (depending on the repetition of the offense), to whom the Institution’s final opinion will be given “appreciate the bad faith” can be fined 250, 500, 700 or 1,000 Euros (based on recidivism).
When will it be published?
The bill will be put into action after the approval of Congress. now for him Senate. If this room does not approve the changes, they will be confirmed for sure. If he makes changes, he will return to Congress to get his final green light. In any case, it can be foreseen that it will be approved. before summer. Later, the Ministry of Economy regulatory developments about its inner workings. Another key point is appointment of the first president, scheduled for the fall and possibly setting its place in Madrid. In addition, you will need to rent 250 employees anticipates the government will need it. All this makes it predictable that he won’t start managing receivables until he’s compensated. next year.