Arms Ltd refunds penalties - 'Victory for consumers' - PL

The Labour Party said today that Arms Ltd was refunding the €12 penalty imposed on hundreds of consumers for allegedly defaulting.

The penalty was imposed when the company issued warning letters warning its clients that unless they settled their bills, they would be sued. Every consumer who received the letter was also fined €12.

The PL said the company's u-turn was the result of its pressure on the government.

It recalled that these illegal and unsigned letters was revealed by Joseph Muscat on October 3. The government had later acknowledged that the letters were illegal and abusive, the PL said. Finance Minister Tonio Fenech had said in Parliament that these letters were being considered null.

Yesterday, he confirmed in Parliament that where the €12 fine had been collected, it was being refunded through a credit note.

The party noted that the minister had still failed to say who, of the four managers at Arms Ltd, had actually authorised these letters and who, therefore, would be held responsible.