Retail Banking

Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Foundation of Customer Complaints Referee Committee,
Notification On Organization And Working Principles And Rules Of The Arbitration Committee
Foundation of Customer Complaints Referee Committee,

PART ONE
General Provisions

CHAPTER ONE
Purpose and Scope, Grounds and Definitions

Purpose and scope
ARTICLE 1 - (1) The purpose of this Notification is to regulate principles and rules related to Client Complaints Arbitration Committee as well as organization, authority, duties and liabilities of the Committee, in order to ensure assessment and resolution of disputes between Association members and retail clients.

Grounds
ARTICLE 2 - (1) This Notification was prepared on the basis of clause (j) provision of article 80 of Banking Law with no. 5411.

Definition
ARTICLE 3 - (1) Within this Notification;

a. Bank : means Participation banks with Association membership,
b. President : means the President of Client Complaints Arbitration Committee,
c. Union : means the Participation Banks Association of Turkey,
d. Committee : means Client Complaints Arbitration Committee,
e. Law : means Banking law with date 19/10/2005 and no. 5411,
f. Agency : means the Banking Regulation and Supervision Agency,
g. Member : means the members of Client Complaints Arbitration Committee.

CHAPTER TWO
Foundation and Organization of the Arbitration Committee

Foundation of the Committee
ARTICLE 4 - (1) The Committee is founded as to serve within the body of the Association. Secretariat services of the Committee are carried out by the Association If seen necessary by the Association, multiple Committees may be founded.

Organization of the Committee
ARTICLE 5 - (1) The Association consists of five members, one being the President. Three substitute members are selected as to serve instead of those full members who can’t take part in meetings due to their excuses. It’s obligatory that two of full members have at least bachelor degrees in field of law.

(2) Members to take office in the Committee are selected by Administrative Board of the Association from two members to be nominated by banks It’s obligatory that substitute members to take office in place of full members with law degrees also have degrees in field of law.

Eligibility requirements for members
ARTICLE 6 - (1) It's obligatory that committee members other than the members with law degrees have bachelor degrees at least in fields of economics, finance, money management, banking, business administration, public administration, management engineering or industrial engineering, the president has at least ten-year experience in field of banking and other members has at least seven-year experience in this field.

Period and termination of membership
ARTICLE 7 - (1) One of the members who meet necessary requirements is appointed as president by the Administrative Board. Term of office for president and members is two years. It’s possible that the members including president who concluded their terms of office may be reassigned to the same office for a second term.

(2) In case of presence of one or several following situations such as incapacity to work due to a serious disease or illness or malpractice or conviction of any crime mentioned in sub clause (d), the first clause, article 8 of the Law or termination of signing authority in accordance with the second clause, article 26 of the Law, President and members cease to be members.

(3) In case of a member's death, resignation from committee membership or severance from the bank, Association asks the bank for whom the member worked to assign a new member. The new member takes office for the remaining period of the member whom he replaced.

(4) More than one member nominated by the same bank within a term can not take offices in the committee for At most one member is selected for the Committee, from the banks which appear in the same risk group.

(5) The term of office of a member who concluded his/her term of office continues until a new member is selected in place of him/her.

Wages and expenses
ARTICLE 8 – (1) Committee members are paid wages for this term of office they take, within the frame of rules and procedures to be determined by the Administrative Board. Expenses required for activities of the committee are covered from annual budget of the Association.

PART TWO
Terms and Conditions of Application to the Committee

CHAPTER ONE
Scope of Application

Scope of complaints to be forwarded to the Committee
ARTICLE 9 - (1) The Committee examines all the complaints related to banks, except for those specified below. Complaints specified below are declined by the secretariat, without being forwarded to the Committee:

a. Complaints regarding disputes that occurred before this notification comes into effect,
b. Complaints that are not delivered to the Committee within thirty days following response date or end of response time of Bank’s general directorate or related branch,
c. Complaints that are not delivered to the Committee within one hundred twenty days following client’s getting information on transaction or act subject to the complaint, or loss caused by it,
d. Complaints that are not delivered to the Committee howsoever within a year following the date the transaction or act subject to the complaint, or loss caused by it occurred,
e. Complaints submitted to the jurisdiction,
f. Complaints resolved between the client and the bank,
g. Complaints originating from applications of funds having commercial qualities through banks,
h. Complaints with general qualities, concerning banks and services they provide,

Foundation of Customer Complai

i. Complaints concerning decisions taken by a bank decided on its bankrupt or liquidation,
j. Complaints concerning crimes subject to direct criminal prosecution.

(2) In case that complaints were directly delivered to the Committee without first applying to bank’s general directorate or related branch, mentioned complaints are forwarded to general directorate of the related bank by the secretariat in order for the complainant to be informed of response. Time periods specified in the first clause of the Article 11 are counted as from the date the complaints are received by the related Bank.

(3) Committee’s task related to the complaint ends once it is submitted to jurisdiction after having been forwarded to the Committee. The Committee is notified of the complaint submitted to the jurisdiction, by the complainant or bank.

CHAPTER TWO

Application to the Bank
Application to general directorate or related branch of the bank
ARTICLE 10 - (1) Before being delivered to the Committee, the complaint is announced to general directorate or related branch of the bank in written or through e-mail by the complainant. General directorate or related branch issues a document to complainant, with signature of bank official and date on indicating that his/her written application was received. In case that application was carried out through e-mail, the complainant is informed by the same way, of that his/her application was received.

Procedures to be carried out by the bank
ARTICLE 11 - (1) General directorate or related branch of the bank must give a positive or negative answer to complainant regarding his/her complaint within thirty days following the date complainant’s application was received. In case that general directorate of the bank sees it proper to forward the subject to internal auditing unit, mentioned time period is extended at most for ten days in order for necessary examinations to be made. This situation is announced to the complaint by the way he made his/her application.

(2) General directorate or related branch of the bank can forward to the Committee all the information and documentation concerning transaction or act subject to complaint in order for the matter to be determined. The complainant is immediately notified of this situation by means of sending a copy of all the information and documentation forwarded to the Committee.

(3) In accordance with principles and practices of banking and this notification, in order for clients to be informed of working principles and rules as well as authority and duties of the Committee, Banks keep brochures and complaint form samples prepared by the Association, in places clients can see in their general directorates and branches, by means of reproducing them.

CHAPTER THREE
Application to the Committee

Application period
ARTICLE 12 - (1) Following the date the answer given in case that complainant does not find the answer given by general directorate or related branch of the bank sufficient; or beginning from the end of this period in case no answer is given to him/her within the date period specified in Article 11 of this Notification, he can make an application to the Association within thirty days by means of filling the complaint form.

(2) In measuring the application period to the Association, in case that the client made applications to general directorate of the bank and related branch at different dates, date of the first application made applies.

(3) In case of force majeure, the time period specified in the first clause regarding application to the Association is implemented as one year.

Assessment of applications
ARTICLE 13 - (1) Upon forwarding the complaint to the Committee in due form, the Association asks related bank to forward its opinions on the matter as well as necessary information and documentation. It’s obligatory that the related bank forwards requested information and documentation to the Committee within ten days. Upon request of the bank, this time period may be extended five days for one time only.

(2) Information and documentation not forwarded within its time period by the bank are ignored. The Association comes to a decision through information and documentation in its possession.

(3) During the assessment process of applications, parties can submit new evidence, information and documents to the Association and respond to information and documentation submitted by the opposite party. The complainant can withdraw his application whenever he wishes.

Finalizing applications
ARTICLE 14 - (1) Matter in dispute between bank and complainant is examined by the Association and finalized within at the latest thirty days following the date it was applied to.

Announcing the Committee decision
ARTICLE 15 - (1) Decision taken by the Committee is justifiedly announced to general directorate of the related bank and the complainant within ten days.

Effects of the decision on parties
ARTICLE 16 - (1) In case that the matter of decision’s confirmation is not announced to the Committee by the client or the bank within fifteen days following announcement date, the decision is deemed to be denied by the complainant or the bank. In case such announcement is made, the decision is deemed to be confirmed by the complainant or the bank.

(2) Examination of complaints by the Committee does not abolish legal period limitations related to application to the jurisdiction or arbitration or matter’s submission to the jurisdiction or arbitration.

Annual activity report
ARTICLE 17 - (1) Numbers, subjects and conclusive information of complaints delivered to them are forwarded to the Association by banks in March, June, September and December months every year. The Association publishes annual activity report of the Committee on its website, containing statistical information on these information and complaints delivered to it and settled with a final solution, but also submitted to the jurisdiction, until at the latest December every year and a copy is sent to the Agency.

PART THREE
Working Principles and Rules of the Committee

CHAPTER ONE
Meetings of the Committee and Voting

Meetings and quorum of the committee
ARTICLE 18 - (1) Meeting agenda is determined by the secretariat based on application dates and announced in written to members at least seven days before the meeting. Committee members may be called to meet by the President if s/he deems it necessary.

(2) The Committee convenes with presence of the president and all the full members and taking into consideration the workload related to applications made, and decisions are taken by the unanimous decision of at least three members. Members can not abstain from a vote. Committee members can not take part in assessment and finalization sessions of complaints regarding banks that they,

Foundation of Customer Complai

their spouses or blood relatives and relatives-in-law to the third degree (including the third degree) are related, members of or nominated for. In this case one of the substitute members participates in the meeting.

Conditions for failure to attend meetings

ARTICLE 19 - (1) It is essential for the president and members to attend meetings. Members with excuses for failure to attend inform the Committee Secretariat of their reasons in written. In this case the substitute member participates in the meeting.

(2) Those members failing to attend two successive meetings with no excuse are excluded from membership.

Discussion and voting

ARTICLE 20 - (1) Complaints are discussed according to application date order. The President recognizes those within an order, who ask permission to speak in discussing the complaint. After discussions are completed, agenda item is put to vote. Open ballot is used for votings. A complaint discussed and finalized within the Committee can not be put into vote again.

CHAPTER TWO

Committee Decisions

Committee Decisions

ARTICLE 21 - (1) Committee decisions are signed by members who attended the meeting. Members sign the decisions they have objections against, indicating their reasons for dissent.

Matters that must be put into decisions

ARTICLE 22 - (1) It is obligatory that below-mentioned matters are put into decisions:

a. Date and no. of the decision,
b. Names and surnames of Committee members who made the decision,
c. Names, surnames and addresses of parties,
d. Summary of the complaint and defense,
e. Summary of examination and technical and legal matters discussed,
f. Assessment of all the evidence and statements put forward,
g. Justification and legal basis of the decision,
h. Indication that reads “In case confirmation of this decision by your party is not announced to our Committee within fifteen days following the notification date, the decision is deemed to be denied."
i. Members’ reasons for dissent, if any,
j. Conclusion.

Storage of Committee decisions and documents subject to complaint

ARTICLE 23 - (1) It’s obligatory to store Committee decisions and documents subject to complaint for five years.

Bank and client confidentiality

ARTICLE 24 - (1) Provisions of the law regarding bank and client confidentiality apply to complaints delivered to the Committee.

Enforcement

ARTICLE 25 - (1) Provisions of this Notification enter into force in the date of 01.09.2007.

Execution

ARTICLE 26- (1) Provisions of this Notification are executed by the Participation Banks Association of Turkey.