For low-value disputes between a consumer and a seller or service provider, applying to the consumer arbitration committee is mandatory before going to court. The application is free of charge and no attorney is required. However, how well the file is prepared has a direct effect on the outcome.
Which disputes go to the arbitration committee?
If the amount in dispute is below the monetary threshold set each year according to the revaluation rate, applying to the arbitration committee is mandatory. Disputes above this threshold are filed directly with the consumer court. The most common subjects of applications are defective goods and services, refunds of bank charges, subscription and distance sales disputes, and disagreements over installments and credit cards.
How to apply
- The application is made to the arbitration committee at the consumer's place of residence or where the transaction took place.
- You can apply online through the Consumer Information System on e-Devlet (the e-Government Gateway), or by submitting a petition to the committee at the district governor's office.
- Invoices, contracts, payment receipts, correspondence and any service reports are attached to the petition.
The decision process
As a rule, the committee decides on the application within six months, and this period may be extended by up to six months. An expert examination is ordered if deemed necessary. The decision is served on the parties and has the force of a court judgment. If the seller does not comply, the consumer can directly initiate enforcement based on a court judgment.
Challenging the decision
The parties may file an objection lawsuit with the consumer court within fifteen days of service of the decision. The objection does not stay enforcement of the decision, so an injunction must be requested separately from the court. The court's decision on the objection is final.
For sellers and service providers
Companies can have arbitration committee decisions made against them reviewed by filing an objection on time. Our firm monitors arbitration committee applications for its corporate clients collectively and handles the objection process.