This chapter critically analyses the privatisation of consumer disputes in financial services in the EU and advances two arguments. First, the author argues that the outsourcing of consumer financial disputes to arbitration and ADR bodies contradicts the objectives of the EU consumer protection framework in the financial sector - such as ensuring consumer trust and responsibility - to the extent that it sanctions the privatisation of consumer financial disputes by unaccountable bodies which generally exclude civil liability for the performance of their services. Second, the author provides normative solutions to the problems previously presented by proposing more civil liability for ADR bodies in the resolution of consumer disputes in financial services.
This chapter analyses the implications of the changing interplay between arbitration practices and EU policies, rules and standards that apply to arbitration beyond the EU marketplace. It is commonly assumed that the EU’s recent focus on arbitration is a response to changes in arbitration practices. In contrast, my hypothesis posits that arbitration is proactively used by the EU – in particular, the European Commission (EC) – as a tool of transnational legal ordering that promotes EU law beyond its borders. There are two main fields where the EU has recently promoted arbitration: international trade and investment law (broadly referred to as international economic law) and EU-regulated markets, including crossborder consumer redress. The aim of this chapter is to (1) present a summary account of EU policies and rules on arbitration in these fields, (2) demonstrate the increasing power of the EU in governance and the standardization of dispute settlement in international economic law and (3) examine the effect of such power on the development of European regulatory private law beyond EU borders.