The Office of Competition and Consumer Protection (UOKiK) ends proceedings against four banks regarding unauthorized transactions

UOKiK versus banks

Earlier, in proceedings against banks, the President of the Office of Competition and Consumer Protection questioned the way in which they dealt with reports of unauthorized transactions. According to the Office, banks did not always return the money within the statutory deadline, and in some cases they returned the money only conditionally - while the complaint was being considered. If they later determined that the customer had authorized or was responsible for the transaction, they would reverse the refund and withdraw the money from his account again.

The Office of Competition and Consumer Protection explained that another issue was cases in which banks justified the refusal of a refund by the correct authentication of the customer's identity, considering the customer's authentication as authorization of the transaction.

The Office emphasized that the regulations specify the rules and deadlines for the return of funds, but banks did not always fulfill their obligations.

"This was the reason for proceedings initiated by the President of the Office of Competition and Consumer Protection against the largest Polish banks regarding their actions after the consumer reported an unauthorized payment transaction. Four of them resulted in binding decisions. The decisions concern Alior Bank, mBank, BNP Paribas and Bank Millennium and end the proceedings against these institutions lasting almost four years," he pointed out.

Banks will change their practices

This means that Alior Bank, mBank, BNP Paribas and Bank Millennium will change their practices and re-examine customer reports that they previously rejected.

Commitment decisions end proceedings against Alior Bank, mBank, BNP Paribas and Bank Millennium. The Office of Competition and Consumer Protection emphasized that this is not the end of the activities of the President of the Office regarding unauthorized payment transactions - there are still 10 proceedings pending in which banks were charged with similar issues.

"For years, the President of the Office of Competition and Consumer Protection has consistently pointed out the need to distinguish the concepts of authorization from authentication, as well as the obligation to establish the consumer's informed consent to perform a payment transaction. Authorization and authentication are not the same thing. Authorization means the consumer's consent to perform a specific transaction, while authentication allows the bank to verify the user's identity or the validity of the use of a payment instrument," the Office pointed out.

The bank should refund the amount immediately

He recalled that after reporting an unauthorized transaction, as a rule, the bank should immediately refund the consumer the amount of the reported unauthorized transaction - no later than the end of the next business day after detecting such a transaction or receiving the report. The regulations provide for exceptions to the obligation to return immediately. They concern, among others: a situation in which the bank has reasonable and duly documented grounds to suspect fraud on the part of the payer and will inform law enforcement authorities about it.