The Parliament has approved a new set of penalties with sharper fines for improper use of the Financial Client Protection Office, coming into effect just 48 hours after the first discount. Several parliamentary groups agreed to soften penalties on Tuesday, reducing maximum fines from 500 euros to 300 euros for illegal filings and up to 1,000 euros to 500 euros after a claim is accepted and resolved. The groups emphasized the bad faith of the claimant and the need to deter frivolous actions. Later that day they unanimously lowered the limits further to 200 euros and 250 euros respectively, with a mechanism to raise them in the event of recidivism.
The new body will have the authority to punish repeated claims within a one year period that are deemed unfounded or fail to consider the rights and legitimate interests of the client, including any offensive content. The initial fine remains 200 euros, with 300 euros for the second offense, 400 euros for the third, and 500 euros for the fourth instance.
The institution also plans to address damages arising from bad faith claims and the alleged assets. The initial fine for these cases will be 250 euros, rising to 500 euros for a second offense, 700 euros for the third, and 1,000 euros for the fourth. Appeals can be filed through both administrative and contentious-administrative courts as appropriate.
Additionally, the groups approved minor adjustments. For example, the claim document template will not be mandatory. The new organ will provide specific staff to assist claim presentations, including free telephone lines. The institution may also enter into agreements with regional governments and consumer institutes to offer information on how to file claims and how to proceed effectively.
Courts and Fees
As reported, another important change concerns access to the courts. Under the Government plan, organizations and clients may challenge decisions of the Authority or pursue contentious-administrative routes before the National Court in binding civil matters and in non binding cases. The General Council of the Judiciary and the Financial Council flagged questions about legal reserves, and it was decided that most resources from first instance courts would follow a shortened, largely written procedure.
It was also decided to replace the 250 euro fee per request. It was argued that the organization should remain accessible to those affected, while the groups expect the new authority to be funded. About 40 percent of operating costs will be distributed proportionally to the number of resolved claims per asset, while the remaining 60 percent will be distributed according to the proportion of favorable outcomes for clients. The annual global income will be estimated and the final amount determined in April of the following year when the Authority’s final expenses are known.