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 w...
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| Language: | English en_US |
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Washington, DC
2013
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| 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 |
| 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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