Settle a dispute at the BaFin arbitration board

Are you in a dispute with a bank or a financial services institution? Then, under certain circumstances, you can turn to the arbitration board at the Federal Financial Supervisory Authority (BaFin).

Consumers can resolve disputes with companies out of court. For this purpose, there are dispute resolution bodies where legal professionals strive for an independent and impartial resolution of conflicts. The Federal Financial Supervisory Authority (BaFin) operates such a dispute resolution body, which intervenes in conflicts with banks and financial service providers. However, this body is a fallback dispute resolution entity. It only becomes active if no other recognized dispute resolution body is responsible for your case.

Before contacting the BaFin arbitration board, please check whether any of the other recognized arbitration boards are responsible for your case. These so-called consumer arbitration boards are recognized by the Federal Office of Justice (BfJ) and operate within a defined area of responsibility. You can find the consumer arbitration boards relating to the subject of finance and their specific areas of responsibility on the BfJ website. A link to the page can be found in the “Further Information“ section. If none of the consumer arbitration boards is responsible for your case, you can submit an application for dispute resolution to BaFin.
 

Before arbitration proceedings are initiated, you must submit an application to the Federal Financial Supervisory Authority (BaFin).

• Go to the BaFin website and open the “Arbitration Request“ form.
• Fill out the form completely. This can be done using the online form, on a computer, or by hand. In the form, you state what you are accusing the company of and what you want to achieve with your application for conciliation.
• Print out the form if necessary and sign it.
• Enclose or upload the supplementary documents and send them to the BaFin dispute resolution body. You can submit the application online, by email, by fax, or by mail.
• Upon receipt of the application, BaFin will examine whether it is responsible for dispute resolution in your case.
  • If BaFin is responsible, you will receive an acknowledgment of receipt and your documents will be reviewed.
  • If the BaFin is not responsible, you will be informed. The BaFin will forward your case to the competent consumer arbitration board if applicable, provided that a board can be assigned.
• You will receive a written notification regarding the initiation of the dispute resolution procedure or a rejection with reasons.
• If your request for dispute resolution is accepted, the BaFin arbitration board will contact the company you are in conflict with and ask for a statement on the case.
• In the best-case scenario, the company will then inform you that it is complying with your demands and the conciliation procedure is concluded.
• If the company does not agree, you have the opportunity to comment on this additionally.
• If the conciliation body has all the necessary documents, the conciliator will draw up a settlement proposal. This will be submitted to both parties, i.e., you and the company. Both sides must decide whether they accept the proposal.
• The conciliation board will notify you of the outcome. This concludes the proceedings.
• If you are not satisfied with the outcome of the arbitration, you are free to take legal action against the company.

• In the event of an incorrect application: BaFin gives you the opportunity to correct deficiencies in the application within 1 month.
• The company has 1 month to respond to your request for arbitration.
• If the company informs you that it will not grant your request, you have the opportunity to submit supplementary comments within 1 month.
• Once you have received the settlement proposal, you have 6 weeks to inform the conciliation body whether or not you wish to accept it.

Note: The arbitration procedure is free of charge for consumers. However, expenses such as postage, telephone charges, copies, or legal fees are not reimbursed. The arbitration board generally charges the participating companies a fee of EUR 200.00.

You have no legal remedies available against the decision of a conciliator.

However, if you are not satisfied with the outcome of the arbitration, you are free to take legal action against the company.