{"id":14450,"date":"2025-06-29T17:18:31","date_gmt":"2025-06-29T15:18:31","guid":{"rendered":"https:\/\/mediadorconflictos.com\/?p=14450"},"modified":"2025-09-29T16:46:45","modified_gmt":"2025-09-29T14:46:45","slug":"consumers-financial-institutions-and-airlines-facing-the-mandatory-use-of-adr-in-lo-1-2025","status":"publish","type":"post","link":"https:\/\/mediadorconflictos.com\/en\/consumers-financial-institutions-and-airlines-facing-the-mandatory-use-of-adr-in-lo-1-2025\/","title":{"rendered":"Consumers, Financial Institutions and Airlines Facing the Mandatory Use of ADR in LO 1\/2025"},"content":{"rendered":"<h3><strong>Consumers, Financial Institutions and Airlines Facing the Mandatory Use of ADR in LO 1\/2025<\/strong><\/h3>\n<p>On <strong>Wednesday, June 25, 2025<\/strong>, I had the opportunity to attend, thanks to the kind invitation of <strong>Mr. Jai Nanwani<\/strong>, the conference titled <strong>\u201cConsumers, Financial Institutions and Airlines Facing the Mandatory Use of ADR in Organic Law 1\/2025\u201d<\/strong>, held within the framework of the <strong>10th Barcelona Legal Congress<\/strong>.<\/p>\n<p><strong>Speakers<\/strong><\/p>\n<p>The session was presented by lawyer <strong>Jai Nanwani<\/strong>, president of the <strong>ICAB\u2019s Aviation and Space Law Section<\/strong>, who has just been awarded the <strong>\u2018CorporateLiveWire\u2019 Innovation and Excellence Awards 2025<\/strong> in the category of <strong>Aviation Law Firm of the Year<\/strong>, and moderated by <strong>Silvia Pardo Prado<\/strong>, lawyer and president of the <strong>Consumer Law Section of ICAB<\/strong>. The panel featured:<\/p>\n<ul>\n<li><strong>Vicente P\u00e9rez Daud\u00ed<\/strong>, Professor of Procedural Law at the University of Barcelona.<\/li>\n<li><strong>Helen Pino Vera<\/strong>, lawyer and member of the ICAB\u2019s Procedural Law Section.<\/li>\n<li><strong>Elisabet Valencia Ortega<\/strong>, lawyer and vice-president of the ICAB\u2019s Banking Law Section.<\/li>\n<li><strong>Juli\u00e0 Guimer\u00e0 Gargallo<\/strong>, Head of the Information and Consumer Support Division at the Catalan Consumer Agency and Secretary of the Consumer Arbitration Board of Catalonia.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Contributions by Professor Vicente P\u00e9rez Daud\u00ed<\/strong><\/p>\n<p>Professor <strong>P\u00e9rez Daud\u00ed<\/strong> expressed a critical view of the judicial interpretation of <strong>LO 1\/2025<\/strong>, calling for increased budgetary resources for the justice system. He argued that <strong>\u201ccourts are applying this law in an excessively restrictive manner\u201d<\/strong>. He pointed to major legislative gaps, such as the <strong>lack of a definition of \u201cconsumer\u201d<\/strong> and the <strong>absence of a clearly regulated financial responsibility threshold<\/strong>.<\/p>\n<p><strong>What is the financial responsibility threshold?<\/strong><\/p>\n<p>It refers to a <strong>limit amount<\/strong> that determines whether a dispute can be resolved through <strong>ADR<\/strong> mechanisms, such as consumer arbitration. In Spain:<\/p>\n<ul>\n<li>In many simplified procedures, the threshold is around <strong>\u20ac300<\/strong>.<\/li>\n<li>In other cases, it is set at <strong>\u20ac2,000<\/strong> for proceedings without a court hearing.<\/li>\n<li>It may vary depending on <strong>regional legislation<\/strong> or <strong>individual arbitration board regulations<\/strong>.<\/li>\n<\/ul>\n<p>The <strong>LO 1\/2025<\/strong> <strong>does not establish a \u20ac2,000 threshold<\/strong>. This amount comes from the <strong>Regulation of the Consumer Arbitration System (RD 713\/2024)<\/strong>, not from the Organic Law. Article <strong>5.1<\/strong> requires recourse to ADR before filing a civil claim but <strong>does not set any monetary limits<\/strong>.<\/p>\n<p><strong>The case of Catalonia<\/strong><\/p>\n<p>In <strong>Catalonia<\/strong>, the consumer arbitration system also sets differentiated thresholds based on the type of procedure:<\/p>\n<ul>\n<li>Up to <strong>\u20ac300<\/strong>: a <strong>simplified procedure<\/strong> is applied, without an oral hearing and with <strong>document-based processing only<\/strong>.<\/li>\n<li>Between <strong>\u20ac300 and \u20ac2,000<\/strong>: either the <strong>simplified<\/strong> or <strong>ordinary procedure<\/strong> may be used, depending on the complexity of the case and the arbitration board\u2019s assessment.<\/li>\n<li>Above <strong>\u20ac2,000<\/strong>: the <strong>ordinary procedure<\/strong> is usually applied, with <strong>greater procedural safeguards<\/strong>.<\/li>\n<\/ul>\n<p>These figures are established by regional regulations and internal resolutions of the Catalan Consumer Arbitration Board. The goal is to <strong>ensure system efficiency<\/strong> and <strong>guarantee equitable access<\/strong> to out-of-court dispute resolution.<\/p>\n<p><strong>P\u00e9rez Daud\u00ed<\/strong> also highlighted the <strong>efficiency of the Catalan Consumer Agency<\/strong>, which resolves many cases through mediation and arbitration, in contrast with the <strong>collapse of the Spanish Aviation Safety Agency (AESA)<\/strong>, which operates only in Madrid and has <strong>very limited capacity<\/strong>. He stated that <strong>\u201cAESA is not functioning in litigation; it is collapsed\u201d<\/strong> and that <strong>\u201cit does not deal with important issues like lost luggage\u201d<\/strong>.<\/p>\n<p>He further warned that the <strong>lack of a chance to correct the absence of a prior ADR attempt before filing a lawsuit<\/strong> could give rise to a <strong>constitutional challenge<\/strong>. In his words: <strong>\u201cthis will end in a declaration of unconstitutionality.\u201d<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Assessment by the Catalan Consumer Agency<\/strong><\/p>\n<p><strong>Juli\u00e0 Guimer\u00e0<\/strong> gave a positive assessment of <strong>LO 1\/2025<\/strong>. He stressed that the <strong>Seventh Additional Provision<\/strong> sets as a procedural requirement the need to <strong>have first submitted a claim to the company<\/strong>. He reminded that <strong>\u201cthe client must first try to contact the company as a condition for proceeding\u201d<\/strong>. The Catalan Consumer Agency has been contributing for years to <strong>easing the court burden<\/strong> through <strong>free mediation and arbitration services<\/strong> (Decree <strong>98\/2010<\/strong>).<\/p>\n<p>Guimer\u00e0 clarified that <strong>consumer arbitration<\/strong>, since it involves a third party issuing a decision, is <strong>not technically ADR like mediation<\/strong>, but rather a <strong>quasi-judicial alternative<\/strong>. He stated: <strong>\u201cA tribunal makes a decision; it is not a method to bring parties closer together.\u201d<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Remarks by Elisabet Valencia Ortega<\/strong><\/p>\n<p>Lawyer <strong>Elisabet Valencia<\/strong> discussed the situation of <strong>banking consumers<\/strong>. She noted that they may contact the <strong>Customer Service Department (SAC)<\/strong> or resort to <strong>ADR<\/strong>. She expressed concern about <strong>Article 439 bis of the Civil Procedure Act (LEC)<\/strong> in relation to <strong>claims for abusive clauses in mortgage loans<\/strong>, stating that <strong>\u201cif the client chooses ADR, there are problems with confidentiality and preclusion of claims\u201d<\/strong>. She emphasized that <strong>a prior claim is not ADR<\/strong>, and that often consumers are <strong>just requesting documentation before suing<\/strong>.<\/p>\n<p><strong>What does preclusion of claims mean?<\/strong><\/p>\n<p><strong>Preclusion of claims<\/strong> is a procedural principle whereby a party <strong>loses the right to submit certain arguments or evidence<\/strong> if not done at the proper stage. In the context of ADR, it refers to <strong>cases where courts reject lawsuits for not proving prior out-of-court attempts<\/strong>, <strong>without allowing the party to remedy this<\/strong>, which may infringe on the <strong>right to effective judicial protection<\/strong>.<\/p>\n<p>Valencia supported the motto <strong>\u201cFewer lawsuits, lower costs\u201d<\/strong>, and insisted that <strong>\u201cwe must learn to let go\u201d<\/strong>. She also highlighted <strong>consumer identification issues<\/strong>, warning that <strong>\u201cwe cannot send statements to just anyone\u201d<\/strong>.<\/p>\n<p>She pointed to the <strong>low prevalence of mediation<\/strong> in the banking sector. Often, what is called direct negotiation <strong>boils down to minor discounts<\/strong>, without a real dialogue process. Regarding <strong>revolving credit cards<\/strong>, she noted that <strong>not all are abusive<\/strong>, and that <strong>there is a grey area where negotiation is preferable<\/strong>. She referred to the use of ADR to <strong>request documentation before filing a lawsuit<\/strong>, especially in <strong>usury cases<\/strong>. She concluded that <strong>\u201cjustice is clearly being instrumentalised\u201d<\/strong> and that <strong>\u201cthe client ends up choosing the ADR method they want\u201d<\/strong>.<\/p>\n<p>Relevant case law:<\/p>\n<ul>\n<li><strong>STS 149\/2020<\/strong>, on usury in revolving cards.<\/li>\n<li><strong>STS 367\/2022<\/strong>, on transparency in credit contracts.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Insights by Helen Pino Vera<\/strong><\/p>\n<p><strong>Helen Pino<\/strong> denounced the <strong>difficulties consumers face in air transport claims<\/strong>. She explained that it can take <strong>up to 24 months<\/strong> to resolve such matters and that there are <strong>documentation issues<\/strong>, especially with <strong>paper copies<\/strong>. This delay compromises the <strong>right to effective judicial protection<\/strong>.<\/p>\n<p>She warned about the <strong>regionalisation of procedural law<\/strong>: courts in places like <strong>M\u00e1laga or the Balearic Islands<\/strong> apply <strong>different protocols<\/strong>, leading to <strong>significant territorial inequality<\/strong>. She advocated for <strong>standardising procedures<\/strong> through official protocols.<\/p>\n<p>She recalled <strong>Articles 5 and 10 of LO 1\/2025<\/strong> and the <strong>Seventh Additional Provision<\/strong>, which states that <strong>\u201cthe procedural requirement is deemed fulfilled when a claim has been submitted to the other party and no response was received within the deadline, or the response was unsatisfactory.\u201d<\/strong><\/p>\n<p>She also highlighted that <strong>\u201caround \u20ac5 billion are being held in the courts, waiting for a court clerk to push a button.\u201d<\/strong> This situation reflects <strong>serious inefficiencies<\/strong> in the management of judicial compensation.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The conference highlighted both the <strong>progress and shortcomings<\/strong> of the recent <strong>LO 1\/2025<\/strong> in the field of <strong>out-of-court conflict resolution<\/strong>. Despite the legislative support for ADR, <strong>interpretive doubts<\/strong>, <strong>institutional imbalances<\/strong>, and <strong>practical deficiencies<\/strong> remain. <strong>Training<\/strong>, <strong>coordination among legal actors<\/strong>, and <strong>adequate resourcing<\/strong> will be key for this reform to achieve its goal of a <strong>faster, more accessible, and people-centered justice<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumers, Financial Institutions and Airlines Facing the Mandatory Use of ADR in LO 1\/2025 On Wednesday, June 25, 2025, I had the opportunity to attend, thanks to the kind invitation of Mr. Jai Nanwani, the conference titled \u201cConsumers, Financial Institutions and Airlines Facing the Mandatory&#8230;<\/p>\n","protected":false},"author":3,"featured_media":14441,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79],"tags":[],"class_list":["post-14450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"_links":{"self":[{"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/posts\/14450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/comments?post=14450"}],"version-history":[{"count":3,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/posts\/14450\/revisions"}],"predecessor-version":[{"id":15818,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/posts\/14450\/revisions\/15818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/media\/14441"}],"wp:attachment":[{"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/media?parent=14450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/categories?post=14450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mediadorconflictos.com\/en\/wp-json\/wp\/v2\/tags?post=14450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}