Fogyasztóvédők Magyarországi Egyesülete

The Arbitration board - out of court proceeding

The arbitration board is established for the purpose of attempting to reach an agreement between a contractor and a consumer to settle a dispute (consumer litigation) or, should the prior process fail to produce results, to decide on the matter in order to quickly, efficiently and simply enforce consumer rights. The arbitration board is an independent organ operating in connection with regional chambers of commerce.

The scope of the arbitration board shall include out-of-court settlement of consumer legal disputesregarding the quality and safety of goods and services, the application of product liability regulations and the conclusion and performance of contracts.
 

The scope of the arbitration board shall not include consumer legal disputes which are assigned by law to the jurisdiction of another authority.
Consumers may file the petition with the arbitration board having jurisdiction over the location where the contract was concluded.

The arbitration board is comprised of the chairman, the deputy chairman and the members.
All arbitration board members are required to have a degree in higher education and no less than two years experience in a relevant field.
The process starts with the consumers petition.

The petition shall be submitted to the chairman of the arbitration board in writing and shall contain

• the name and address of the consumer, or his place of residence, or
• the name and registered office of the organisation initiating the proceedings and the authorisation of the parties affected,
• the name and registered office of the contractor which is the subject of the complaint,
• a brief description of the complaint, along with the facts and evidence in support such,
• the motion with regard to the decision of the council.

The document, or a copy (extract), the contents of which the consumer makes reference to, shall be attached to the petition, thus in particular the written statement of the contractor on the rejection of the complaint or, in respect of public service contractors or those providing financial services, the statement of rejection from the customer service department. Hereinafter a hearing has to be sustained.

If one of the parties fails to appear at the hearing in spite of having been properly notified or fails to present its evidence, the council shall continue the proceedings and shall pass its resolution on the basis of the information in its possession. If establishment or resolution of a substantial fact or other circumstance requires special expertise which the acting council does not possess, the council may appoint an expert to participate.

The council shall terminate the proceedings, if

• the consumer withdraws his petition,
• the parties agree on termination of the proceedings,
• continuation of the proceedings becomes impossible,
• continuation of the proceedings should not be necessary for any reasons whatsoever, as so deemed by the council.

The council shall decide the merits of the case by a simple majority of votes.
The council shall conclude the proceedings within sixty days of their commencement. In justified cases the above deadline may be extended by no more than an additional period of thirty days.

The resolution of the council shall be a recommendation, if the contractor involved in the case has stated upon commencement of the proceedings that it does not accept the decision of the council as obligatory, or shall be an obligatory resolution, if the contractor involved in the case has declared that will accept the decision of the arbitration board as obligatory upon commencement of the proceeding (submission) or upon announcement of the resolution.