25. 3. 2020
The Act on Judicial Protection for Former Holders of Eligible Liabilities of Banks (Official Gazette of the Republic of Slovenia, No. 72/19; ZPSVIKOB), which governs compensation claims by bank customers whose rights have been affected by the extraordinary measure imposed by the Bank of Slovenia and provides for both judicial and extrajudicial protection in enforcing compensation rights. With respect to extrajudicial protection, Article 4 of ZPSVIKOB provides for the right to a flat-rate compensation
. Flat-rate compensation claims are to to be submitted to the Bank of Slovenia by former holders whose gross income in 2013 did not exceed EUR 18,278.16
. The Bank of Slovenia would pay qualifying holders a flat-rate of compensation of 80% of the amount
paid by the holder for the eligible liabilities, whereas compensation may not exceed EUR 20,000 for each order. Qualifying holders availing of the flat-rate of compensation scheme waive the right to compensation under Article 350a of the Banking Act (Official Gazette of the Republic of Slovenia, No. 99/10, as amended; ZBan-1).
In terms of judicial protection, ZPSVIKOB allows actions for damages to be brought by former holders. In such cases, pursuant to Article 350a of ZBan-1, holders must prove that the damage caused by the extraordinary measure is greater than it would have been without the extraordinary measure. The deadline for bringing those actions is 7 months from the virtual data room announcement date for the bank in question.
ZPSVIKOB time limits for filing actions for damages and flat-rate compensation claims are currently suspended. Namely, on 5 March 2020 the Constitutional Court of the Republic of Slovenia rendered ruling No. U-I-4/20-19 suspending enforcement of ZPSVIKOB pending the outcome of a constitutional review of ZPSVIKOB on foot of an application by the Bank of Slovenia. Despite the suspension, we advise that you follow developments in the case and keep an eye on rulings rendered by the Constitutional Court, and prepare any claims under ZPSVIKOB on time.
Authors: Tim Gaberšek, student
Ana Kastelec, Attorney-at-Law