Consumer protection in face of misselling: institutional gaps revealed by the restructuring and bankruptcy of Idea Bank S.A.

Purpose:The purpose of the publication is to examine the effectiveness of consumer protection for individuals who suffered losses due to misselling in the context of bank restructuring and bankruptcy.The publication focuses on the institutional framework of protection and the actual actions taken by state institutions.Design/methodology/approach: The study draws upon the analysis of academic publications, decisions and communications issued by state institutions, national court rulings, press articles, and a case study based on the documentation of a bank client who fell victim to misselling.Findings: Consumer protection for those harmed by misselling proves inadequate in the context of bank restructuring and bankruptcy.The current framework for consumer protection seems poorly adapted to such circumstances, while the established procedures present considerable barriers for affected individuals.Research limitations/implications: Both the analyzed decisions of state institutions and the documents included in the case study are partially basing on statements from consumers, who may present events in a manner that is legally more advantageous to them.Additionally, the projection of the final loss in the case study lacks basis in measurable data, and therefore should be approached with great caution.Practical implications: The publication can serve as a valuable resource for organizations dedicated to consumer protection, as well as for entities involved in shaping and drafting legislation related to consumer rights.Social implications: The research findings highlight the variation in the strength and quality of protection among consumers, depending on the financial situation of the bank and the legal assessment of their circumstances.Utilizing these insights could contribute to the development of more equitable solutions.Originality/value: The study reveals gaps in the protection of financial services consumers who have been harmed by misselling in cases of bank restructuring and/or bankruptcy.It also highlights the scale of the phenomenon and the extent of losses that consumers are exposed to.