CIVIL LAW AND CIVIL PROCEDURE

Financial arbitrator and banking ombudsman: a comparative analysis of out-of Court dispute resolution models in the czech republic and kazakhstan

Abstract

The article examines the institution of the financial arbitrator as a mechanism for out-of-court dispute resolution between consumers and financial institutions. Using the example of the Czech Republic, the legal foundations governing the activities of the Financial Arbitrator under the Act on the Financial Arbitrator are analysed, as well as their interrelation with European Union directives on alternative dispute resolution in consumer matters.

In the Czech Republic, the Financial Arbitrator is a public authority appointed by the Government and empowered to resolve a broad range of disputes, including those related to consumer credit, insurance, investment services, and pension products, within the framework of administrative proceedings. Particular attention is paid to the practice of adjudicating disputes concerning consumer loans, including issues of early repayment and the assessment of the borrower’s creditworthiness.

A comparative analysis is conducted with the institution of the banking ombudsman in Kazakhstan, highlighting differences in legal status, institutional independence, and accountability. The study concludes that the financial arbitrator model in EU Member States demonstrates a higher degree of transparency and institutional independence compared to the Kazakhstani ombudsman model.