Stand:updated on 10.06.2021 | Topic Consumer protection Resolving disputes out of court using the financial ombudsman services
Content
- Avoiding court proceedings by means of alternative dispute resolution (ADR)
- Ombudspersons are independent
- The key principles of ADR procedures
- Who should I contact?
- Who should I contact in the event of a cross-border dispute?
- Frequently asked questions about resolving disputes using the financial ombudsman services
Not all disputes have to end in court. Many banks, savings banks, investment firms and insurance companies in Germany are members of private dispute resolution entities recognised by the Federal Office of Justice (Bundesamt für Justiz – BfJ), known as consumer dispute resolution entities (Verbraucherschlichtungsstellen), and cooperate with them in order to resolve disputes out of court. The ombudspersons working at these entities are mainly former judges who make independent and impartial decisions.
Avoiding court proceedings by means of alternative dispute resolution (ADR)
In order to resolve disputes, many banks, investment firms and most insurance companies cooperate with private ombudspersons that, if recognised by the Federal Office of Justice (Bundesamt für Justiz – BfJ), are known as consumer dispute resolution entities (Verbraucherschlichtungsstellen). The aim of these entities is to give parties in dispute access to a simple, low-cost and efficient means of resolving disputes that, in some cases, is relatively faster than if the parties were to turn to the courts.
If you file a complaint with BaFin, and depending on the nature of the complaint, BaFin may suggest options for resolving the dispute extrajudicially.
Ombudspersons are independent
The consumer dispute resolution entities have to ensure that the ombudspersons meet special qualification requirements: they must either be qualified to exercise the functions of a judge or be certified mediators. The ombudspersons are often highly qualified legal experts and are in most cases former federal judges. They are appointed for a specific period of time. The ombudspersons are independent and may not be dismissed prematurely simply because they ruled against a company. You can therefore expect neutral and competent help and an impartial decision from all dispute resolution entities.
Each dispute resolution entity has its own rules of procedure, but they all have to match basic standards of fairness, transparency and neutrality. We recommend that you consult the entities’ websites for information on their conditions and procedures.
The key principles of ADR procedures
Regardless of which entity is responsible for resolving a particular difference in opinion, the procedures of the entities have certain key principles in common:
- In almost the entire ADR procedure, correspondence takes place in writing.
- Before initiating a conciliation procedure, you should always file a complaint in writing beforehand to the company or institution in question.
- The conciliation procedure itself is free of charge for you as the consumer. But you will have to cover any costs that might be incurred for postage, copies, phone calls, etc. You can, if you wish, hire the services of a lawyer (or other legal representative). However, this is not necessary and if you do so, you will also be responsible for bearing the costs of such legal representation.
- If you disagree with the ADR decision, you can still decide to take legal action and file a lawsuit against the institution concerned.
Stiftung Warentest:Dispute resolution entities – how to assert your legal rights without going to court
Whether you are in dispute with a company over a flight, an electricity bill or a loan – taking the matter to court could prove time consuming and expensive, and there is no guarantee that the court will rule in your favour. Dispute resolution entities offer an alternative. They mediate between consumers and companies from a large number of sectors, and their services are free of charge. The website test.de of Stiftung Warentest (website only available in German) explains how the dispute resolution process works and what consumers should keep in mind, and lists the main contact points where consumers can seek help. The conciliation bodies listed here now also include the German government’s General Conciliation Body (Universalschlichtungsstelle des Bundes). Consumers can turn to this body if there is no dispute resolution entity for a particular sector.
Who should I contact?
In the table below, we list the most important dispute resolution entities, ombudsperson schemes and complaints offices for customers in the German finance industry. Please note that this list does not claim to be exhaustive. The BaFin database of companies allows you to make a targeted search for institutions, companies and undertakings from the German financial sector which offer the means to resolve disputes via the ADR procedure. Before doing so, please carefully read the instructions on how to use the BaFin database and the legal notices (only available in German).
Whether or not a dispute resolution entity exists in the German financial sector for your case, or a single ombudsperson is responsible for handling it, you can still file a complaint with BaFin against the company concerned. You can also do this if you are unhappy or disagree with the conciliation ruling. On BaFin’s website, you can find detailed information on the procedure for filing complaints.
You can also call us on our consumer helpline on 0800 2 100 500. We are available on all working days from 8am to 6pm. And you can also seek assistance and support from the consumer helplines of the other dispute resolution entities.
| Institution | Responsible for resolving disputes out of court |
|---|---|
| The Ombudsman Scheme of the Association of German Banks (Bundesverband deutscher Banken e.V. – BdB) en.bankenverband.de/tasks/ombudsman-scheme en.bankenverband.de | with private banks which are BdB members and which participate in the BdB’s Ombudsman Scheme |
| Customer complaints office of the National Association of German Cooperative Banks (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V. – BVR) www.bvr.de | with all German cooperative banks which are BVR members and which participate in the customer complaints scheme. Please note that the service is only offered in German. |
| The customer complaint system of the Association of German Public Banks (Bundesverband Öffentlicher Banken e.V. – VÖB) www.voeb.de | with all public credit institutions which are VOEB members and which participate in the customer complaints scheme. Please note that the service is only offered in German. |
| Dispute resolution entity of the German Savings Banks Association (Deutscher Sparkassen- und Giroverband e.V. – DSGV) www.dsgv.de | with all institutions which are DSGV members and which participate in the DSGV’s dispute resolution scheme. Please note that the service is only offered in German. |
| The arbitration office of the Association of Private Bausparkassen (Verband der Privaten Bausparkassen e.V.) www.schlichtungsstelle-bausparen.de | with all private Bausparkassen which are Association members. |
| Ombudsman scheme for disputes concerning material assets and closed-end funds (Ombudsstelle für Sachwerte und Investmentvermögen e.V.) www.ombudsstelle.com | in connection with participations in capital investments within the meaning of the German Capital Investment Act (Vermögensanlagengesetz – VermAnlG) or the German Investment Code (Kapitalanlagegesetzbuch – KAGB). Please note that this service is only offered in German. |
| Independent ombudsman for investment funds of the German Investment Funds Association (Bundesverband Investment und Asset Management e.V. – BVI) www.ombudsstelle-investmentfonds.de | covering all aspects of investment funds and other services offered by investment companies as defined in the German Investment Code (Kapitalanlagegesetzbuch – KAGB). Please note that this service is only offered in German. |
| Arbitration Board of the Federal Financial Supervisory Authority - BaFin (substitute dispute resolution entity) | in connection with the KAGB and with banking business and financial services within the meaning of section 1 (1) sentence 2 of the German Banking Act (Kreditwesengesetz – KWG) and section 1 (1a) sentence 2 of the KWG; see section 14 (1) nos. 6 and 7 of the German Injunctions Act (Unterlassungsklagengesetz – UKlaG) |
| Ombudsman scheme for private health and long-term care insurance (Ombudsmann Private Kranken- und Pflegeversicherung) www.pkv-ombudsmann.de | with private health insurance companies and insurance intermediaries/consultants. Please note that this service is only offered in German. |
| Ombudsman scheme for insurance companies (Ombudsmann für Versicherungen) www.versicherungsombudsmann.de | between insurance intermediaries (agents and brokers) or consultants and policyholders in connection with the intermediation of insurance contracts and insurance companies which are members of the ombudsman scheme. Please note that this service is only offered in German. |
| Ombudsman scheme of the Federal Association of Loan Purchase and Servicing (Bundesvereinigung Kreditankauf und Servicing e.V. – BKS) www.bks-ev.de | between consumers and BKS members concerning sub-performing loans. Please note that this service is only offered in German. |
| Ombudsman scheme of the Real Estate Association IVD and the association of private builders VPB (Ombudsmann Immobilien IVD/VPB - Grunderwerb und Verwaltung) www.ombudsmann-immobilien.net | with member companies of the IVD and VPB. Please note that this service is only offered in German. |
| Dispute resolution entity of the savings banks association of Baden-Württemberg (Sparkassenverband Baden-Württemberg) www.sv-bw.de | with the member savings banks of the association. Please note that this service is only offered in German. |
| Dispute resolution entity of the Deutsche Bundesbank (substitute dispute resolution entity) www.bundesbank.de | in connection with distance selling of financial services, consumer loans (sections 491 to 509 of the German Civil Code (Bürgerliches Gesetzbuch – BGB) and other financing aids such as certain leases and hire purchases, including the broking thereof, payment services (sections 675c to 676c of the BGB), such as credit transfers, direct debits and card payments, the issuance and redemption of electronic money and payment accounts; see section 14 (1) nos. 1 to 5 of the German Injunctions Act (Unterlassungsklagengesetz – UKlaG). Please note that this service is only offered in German. |
| Ombudsman scheme of the VuV (Verband unabhängiger Vermögensverwalter Deutschland e.V.), which represents the interests of independent asset managers in Germany) www.vuv-ombudsstelle.de | with independent asset managers that are VuV members. Please note that this service is only offered in German. |
| The General Conciliation Body of the German government (Universalschlichtungsstelle des Bundes Zentrum für Schlichtung e.V.) (substitute dispute resolution entity) www.verbraucher-schlichter.de | between consumers and companies if no dispute resolution entity exists for a specific sector. Please note that the English website offers you an explanation of the services, but applications can only be made in German. |
| Dispute resolution entity for the commercial intermediation or broking of insurance and investment products and of loans (Schlichtungsstelle für gewerbliche Versicherungs-, Anlage- und Kreditvermittlung) www.schlichtung-finanzberatung.de | regarding the intermediation or broking of insurance and investment products and of loans. Please note that this service is only offered in German. |
| Out-of-court dispute resolution entity for consumers and entrepreneurs (Außergerichtliche Streitbeilegungsstelle für Verbraucher und Unternehmer e.V.) www.streitbeilegungsstelle.org | over financial services, etc. Please note that this service is only offered in German. |
Who should I contact in the event of a cross-border dispute?
FIN-NET
The BaFin arbitration board is a member of FIN-NET and, in the event of a cross-border dispute, transfers your application to open a complaints resolution procedure to the competent dispute resolution organisation of FIN-NET.
FIN-NET
FIN-NET is a network of national organisations responsible for settling consumers' complaints out of court in the financial services area. The network covers the countries of the European Economic Area, i.e. the member states of the European Union, Iceland, Liechtenstein and Norway. The organisations are responsible for settling disputes between consumers and financial services providers such as banks, insurance companies or investment firms. The network was set up on the initiative of the European Commission in 2001. FIN-NET promotes cooperation between the national dispute resolution entities and provides consumers with access to alternative dispute resolution procedures for resolving cross-border disputes out of court.
EU platform for online dispute resolution
The EU has set up a platform for online dispute resolution with which consumers can complain about merchandise or services purchased online. The platform helps consumers find a neutral dispute resolution entity in order to solve a dispute without taking the matter to court. To use this platform, you must live in an EU country and the trader must be based in the EU.
The advantage of this platform is that the complaint is translated into the language of the country in question and the parties to the dispute can see online what stage their complaint has reached in the settlement procedure.
In some countries, the traders are authorised to file complaints about consumers. If you are a trader in one of these countries, you can use this service in order to complain about a consumer.
