What is submission?

What is submission?

The submission is the written or orally taken and recorded statement of the financial service provider at the hearing, in which it undertakes to submit itself to the procedure of the Financial Arbitration Board and, in the absence of an agreement, to the decision adopted in such proceedings, i.e. to accept the Board's decision as binding on itself. Declarations of submission can be general or case-by-case declarations of submission (concerning one particular case only).

The provision of both the general and the case by case statements was optional for the service provider, there was no legal provision that would mandate the service providers to make a statement of submission in the proceedings, however, from 1 January 2017, as a result of a legal amendment applying to every service provider, in proceedings conducted by the Board submission by law was introduced up to a value limit of HUF 1,000,000. With the amendment of the law effective from January 1, 2024, this limit was raised to HUF 2,000,000.

This means that from January 1, 2024, in the absence of an agreement, the Board may issue a binding decision (section 113 (2) of the MNB Act) if the financial service provider involved in the case has not submitted a declaration of submission, but the petition is is substantiated and the consumer's claim - neither in the petition nor when the decision containing the binding resolution is adopted - does not exceed HUF 2,000,000. However, this legal amendment does not mean that the service providers are prevented from making a general or case-by-case declaration of submission.

In addition to statutory submission, the financial service provider may limit the extent and scope of its commitment in its declaration of submission to the value of the subject of the dispute as determined by it (e.g.: indicating the limit of the amount within which its declaration of submission is valid up to the requested amount submitted), or in another way (e.g.: indicating which transaction is not covered by its declaration of submission).