Nefndir.is

The Complaints Committee on Transactions with Financial Firms deals with disputes between consumers and credit institutions, securities firms, or the subsidiaries of such financial firms.

Who can submit a complaint to the committee?

Clients who have entered a contract with a financial firm can submit a complaint to the Committee. The choice to appeal is always at the clients’ discretion, i.e. they do not have to seek the approval of the financial firm concerned. However, before consumers can approach the committee, they must present their claims to the financial firm in question.

How does one seek a ruling?

• A special form must be used, that can be obtained here. The form must be signed and sent by email to fjarmal@nefndir.is
• Private individuals pay a fee of ISK 10.000 upon lodging an appeal. This fee is refunded, when a ruling has been passed, if the client’s claim is wholly or partly accepted. The fee may be refunded if a case is dismissed following an agreement between the client and the financial enterprise concerned.
• Owners of private enterprises whose complaints are related to their business activities pay a fee of ISK 25.000 upon lodging an appeal. In other respects, the provisions of paragraph 2 above shall apply to the owners of private firms. Legal persons pay a fee of ISK 50.000.
• An appeal is not approved unless the fee is paid in full into:

             0370-26-030321
             Kt. 450122-0250

• Please enclose a transcript of the payment with the complaint. Further information regarding fee is on the appeal form.
• It is important to enclose all necessary documentation concerning the disagreement at hand, including reasons for the complaint, the views of the appellant etc. as detailed on the appeals form.
• Careful preparation is helpful to the Committee in concluding matters promptly and efficiently. Appellants are advised to study the information provided below on the committee and its areas of responsibility.

Who is responsible for the committee?

The Committee operates in accordance with an agreement between the Ministry of Finance and Economic Affairs, Finance Iceland and the Consumers’ Association of Iceland as of 1^st of January 2022.

What is the committee’s area of responsibility?

• The clients of the financial firms can turn to the Committee with grievances arising from disputes. In addition, the Committee handles complaints concerning legal disputes between financial firms, or their subsidiaries and their clients, provided there is a contractual relationship between these parties.
• The Committee does not settle disputes that come under the jurisdiction of the Icelandic government. Nor does it handle claims that cannot be valued in financial terms, changes in the general financial charges of financial firms, or disputes that are being handled by civil courts or courts of arbitration. The Committee does not handle cases that are so unclear, badly informed or if the claims are so vague that they are unfit for ruling.
• The Committee may dismiss a case on the grounds that the available information or other special circumstances render it unfit for ruling. A dismissal shall be supported by arguments and accompanied by information on how to seek recourse within the legal system or from other organizations. If the committee has begun procedures to settle a dispute that subsequently comes before a court of law, the case shall be dismissed by the Committee.

How does the committee operate?

When a complaint has been received, the Committee sends all accompanying documents to the financial firms in question.

If a financial firm has not forwarded objections or comments to the Committee within three weeks of the receipt of the complaint, procedures may start on the case based on the available information unless the Committee has accepted a request for a further delay from the financial firms.

A complaint may be withdrawn at any stage. The case is dismissed if the financial firms and the client reach an agreement.

The Committee decides on the kind of information necessary so that a ruling can be made.

The Committee may also request special expert opinion if necessary. As a rule, it shall be the responsibility of the financial firms concerned to seek the required expert opinion.

Committee rulings shall be made within 90 days of receiving all the documentation relevant to the complaint in question. The ruling is always in Icelandic.

The findings of the Committee shall be sent to the parties concerned within 10 days of the ruling. At the same time, the client shall be informed of the possibility of taking legal action or any other available resort depending on the nature of the case. In general, a delay of 4 weeks shall be granted between the announcement of a ruling and its fulfilment.

There are limits to the re-opening of cases, which further emphasizes the importance of carefully preparing each appeal. According to Committee by-laws, the Committee may decide that a case for which a ruling has already been passed be examined again based on new information, which might have brought about a different outcome had it been available at the time of the ruling.

Committee rulings do not prevent subsequent handling of a case by a court of law.

Who are the committee members?

The Committee is made up of five members who shall all be of legal age, have an unblemished reputation, and always have had full control of their personal finances. The chairman and vice-chairman shall also possess the necessary qualifications required for the Office of District Court Judge. Two members shall be jointly nominated by the financial firms participating in the Committee, two by the Consumers’ Association of Iceland and one, who is also the chairman of the Committee, by the Minister of Commerce. Alternates are similarly appointed and shall hold the same qualifications. The chairman’s alternate acts as chairman in his absence.

The Insurance Complaints Committee deals with disputes concerning liability for compensation between clients/consumer and insurance companies.

Who can submit a complaint to the committee?

A consumer, as defined in the by-laws for the committee, is anyone who is insured and/or believes he/she is entitled to insurance compensation. Insurance companies are responsible for keeping their clients adequately informed as to the option of appealing to the committee. Appeals are made at the consumers’ discretion, i.e. they do not need to obtain the approval of the insurance company. However, before consumers can approach the committee, they must present their claims to the insurance company in question.

How does one seek a ruling?

Appeals can be made by filling in a special form A special form must be used, that can be obtained here. The form must be signed and sent by email to tryggingar@nefndir.is

Private individuals pay a fee of ISK 10.000 upon lodging an appeal. This fee is refunded, when a ruling has been passed, if the client’s claim is wholly or partly accepted. The fee may be refunded if a case is dismissed following an agreement between the client and the financial enterprise concerned.

Owners of private enterprises whose complaints are related to their business activities pay a fee of ISK 25.000 upon lodging an appeal. In other respects, the provisions of paragraph 2 above shall apply to the owners of private firms. Legal persons pay a fee of ISK 50.000.

An appeal is not approved unless the fee is paid in full into:

                      0370-26-030321
                      Kt. 450122-0250

Please enclose a transcript of the payment with the complaint. The fee is refundable if the committee decides partly or wholly in the appellant’s favour.

It is important to enclose with the appeal all necessary documentation concerning the disagreement at hand, including reasons for the complaint, the views of the appellant, etc.

Careful preparation is helpful to the committee in concluding matters promptly and efficiently. Appellants are advised to study the information provided below on the committee and its areas of responsibility.

Who is responsible for the committee?

The Committee operates in accordance with an agreement between the Ministry of Finance and Economic Affairs, the Financial Services Association, and the Consumers’ Association of Iceland as of 1^st of January 2022.

What is the committee’s area of responsibility?

• The Insurance Complaints Committee handles disputes concerning liability for compensation, including liability between consumers and insurance companies licensed to operate in Iceland.
• The committee does not handle disputes that should be dealt with by the authorities, claims that cannot be valued in financial terms, changes to the premiums of insurance companies, disputes before civil courts or courts of arbitration, or cases that are so unclear, or where the claims are too vague to allow for a proper ruling.
• The main role of the Insurance Complaints Committee is to handle disputes between a consumer and a domestic insurance company. It is, however, possible to refer to the committee a complaint against a foreign company that is licensed to operate in Iceland. For the committee to make a ruling in such a case, the foreign company has to give its endorsement.
• The Insurance Complaints Committee decides whether a dispute comes under the Committee’s area of responsibility and whether its nature and supporting documents allow for a ruling in the matter. If the committee decides this is not so, the case is dismissed.

How does the committee operate?

When an appeal has been lodged with the Insurance Complaints Committee, the insurance company or companies concerned are notified of the appeal and given three weeks to respond and inform the Committee of their stance. The insurance company in question is expected to notify the counterparty of an appellant of the appeal, if such a party exists. The Committee stresses the importance of observing the right to object in every case before a final ruling is made.

The Committee rules based on information that is either submitted or collected in some other way. All Committee rulings are supported with arguments and shall be made within 30 days of receiving all the documentation relevant to the complaint in question. If the complaint is complex the ruling can be extended for 90 days. When a ruling has been made, its details are sent out to the parties concerned within 10 days. The ruling is always in Icelandic.

Decisions on a ruling are reached by a majority vote of committee members. Committee rulings are not binding for the consumer, who may refer the case to a court of law at any time. Committee rulings are binding for the insurance company concerned unless the company gives notification of non-compliance to the consumer and the committee within a period of four weeks of receiving the ruling.

There are limits to the re-opening of cases, which further emphasises the importance of carefully preparing each appeal. According to Committee by-laws, the Committee may decide that a case for which a ruling has already been passed be examined again based on new information, assuming the appellant was unable to collect or produce at the time of the original ruling and which may affect its outcome.

Committee rulings do not prevent subsequent handling of a case by a court of law.

Who are the committee members?

The Insurance Complaints Committee is made up of three representatives and three alternates. All committee members shall have a law degree and be nominated for a term of two years. Each of the three founding parties of the committee nominates one Committee member and an alternate.