Consumer arbitration committee or consumer court?

Take a bank charge that the customer believes was deducted without justification. If the claim is taken straight to the consumer court, it is dismissed for lack of jurisdiction. In disputes below the monetary threshold in force, an application to the consumer arbitration committee (tüketici hakem heyeti) is compulsory, and without a committee decision the door of the court stays shut. Choosing the right forum matters as much here as the merits of the claim.

The measure that sets the boundary

The distinction rests on a single criterion: the monetary value of the dispute. The Consumer Protection Law sets a threshold that is updated each year in line with the official revaluation rate. Disputes below that threshold must go to a consumer arbitration committee; those above it are heard by the consumer court (tüketici mahkemesi).

Because the threshold changes every calendar year, the figure in force at the time of the application is the one to look at. The former distinction between provincial and district committees has been removed, and a single threshold now applies.

Calculating the claim correctly also matters: where interest and ancillary claims are added to the sum sought, which forum the value points to should be settled at the outset.

Applying to the committee

• The application is made to the committee for the consumer's place of residence or for the place where the consumer transaction was carried out.
• It can be made electronically through the e-Devlet portal, in person, or by post.
• There is no application fee, and representation by an advocate is not required.
• The invoice, contract, guarantee certificate, service slip, bank receipt and correspondence with the other side are attached to the application.
• What is being asked for (repair, replacement, refund of the price, or a reduction) must be stated clearly; the committee cannot decide beyond what is requested.

The committee examines the documents the parties have submitted, and no hearing is held. For that reason the whole of the case and its supporting material has to be gathered in the application itself. Any written defence obtained from the other side also goes into the file.

Applications are decided within the period laid down by statute, though that period may run longer when the workload is heavy.

Enforcing the decision

The committee's decision binds the parties and counts as a document with the force of a judgment. If the other side does not comply, the decision can be taken to enforcement under the Enforcement and Bankruptcy Law. There is no need to bring a separate action, and that is what makes this route effective in low-value disputes.

Objecting to the decision

A party who does not accept the decision may object to the consumer court within fifteen days of being served with it. The period is absolute. An objection does not as a rule stay enforcement of the decision, although on request the court may stay it by way of an interim measure.

The court's decision on the objection is final and cannot be taken further. The objection petition is therefore the last stage at which every argument on the substance of the dispute can be put forward.

Disputes that go to court, and mediation

Where the dispute exceeds the monetary threshold, the consumer court has jurisdiction; in places with no consumer court, the civil court of first instance (asliye hukuk mahkemesi) hears the case in that capacity.

In disputes to be heard by the consumer court, applying to a mediator before bringing the action is a procedural prerequisite. Among the matters left outside that requirement are disputes falling within the remit of the arbitration committees, objections to committee decisions, disputes arising from rights in immovable property, and requests for interim injunctions and interim attachment.

Finally, on time: claims arising from defective goods and services are subject to the limitation periods set out in the legislation. Where the defect has been concealed by gross fault or by deceit, no reliance can be placed on the statute of limitations.

This article is for general information only and does not constitute legal advice on any specific matter. Monetary thresholds are updated each year.