Extrajudicial Settlement of Consumers Disputes in Domain of Financial Services – EU and Croatia

Abstract

A process of integration of Croatian financial market into European financial services market does not only involve implementation of acquis communautaire, but also mechanisms for effective protection of consumers of financial services. Where cross-border disputes arise, resorting to traditional litigation is not always practical, nor cost effective. Alternative methods of dispute resolution, by default are defined as out-of-court dispute resolution processes conducted by a neutral third party, excluding arbitration. So, not only courts but also other dispute mechanisms should be available. Since the field of financial services presents special and technically complex area, a special net called FINNET was created in EU to mediate when a dispute between financial service consumer arises with a cross border provider. Aim of this paper is to recommend the institution that can in a close future be domestic body for dispute settlement in a field of financial services. First part of paper briefly shows a level of achieved integration of EU financial market as well as obstacles to it. A brief view on the alternative dispute settlement models in EU countries follows, with emphasis being added on out of court bodies in domain of financial services. The structure of and basic principles of FIN-NET are explained and solution for Croatia is proposed.