It was necessary to establish a Banking Ombudsman Institute in order to achieve enhancing of customers’ trust in banks and to find solution to disputes between banks and customers prior to courts. This institute can ensure the out-of-court settlement of disputes that may occur between banks and customers. The main purpose of the establishment of the institute is to achieve the formation of relationships based on trust between banks and customers by resolving disputes with the help of the Banking Ombudsman.
The decision on the establishment of the Banking Ombudsman was adopted at the meeting of the General Assembly of Azerbaijan Banks Association on 3 February 2017. At the same time, the meeting has approved the Statute and Regulation on Banking Ombudsman. Ikram Haydar oglu Karimov was elected to the position of a Banking Ombudsman at the next meeting of the Presidium of Azerbaijan Banks Association held on 14 April 2017.
What kind of cases can be submitted?
The competences of the Banking Ombudsman include the settlement of civil law disputes, upon an application of an applicant- a private individual who is a customer of a bank, seeking relief of 2000 (two thousand) USD at the most, expressed in manat and other currency equivalent at the applicable rate of the Central Bank of the Republic of Azerbaijan on the date of the receipt of the application, and arising from the conclusion, revision, application or cancellation of deals with banks, but in no case concerning the conduct of business activities.
At the same time, unless:
- a court decision settling the dispute on its merits entered into force;
- the Banking Ombudsman has previously considered the dispute, the Conciliation Agreement has been concluded thereon or the Ombudsman has adopted the decision settling the dispute on its merits;
- more than two years have elapsed from the event set forth in the application and from the alleged breach of a right;
- the problem set forth in the application is about the general banking business, a type of services provided by banks and banking policy;
- the problem set forth contain criminal and administrative offence elements in accordance with the applicable legislation;
- the case is about the pricing policy of a bank;
- the license of a financial institution, which was complained against, has been revoked or such financial institution has been dissolved.