ARMS Ltd faces class action suit
EU citizens’ anger over paying more for utilities
The lawsuit alleges that ARMS is discriminating against non-Maltese.
Utilities billing company ARMS Ltd is some 10 days away from facing a class action lawsuit on behalf of a group of furious EU citizens living in Malta.
About 80 citizens have added their names to the lawsuit so far, alleging that ARMS is discriminating against non-Maltese by making it inordinately difficult for them to benefit from residential tariff rates.
The ARMS Class Action Group will continue to accept additional claimants until November 22. The legal process will then begin in earnest.
According to ACAG spokeswoman Patricia Graham, many people are holding back from joining the lawsuit for fear of angering their tax-evading landlords.
“Several landlords don’t pay any tax on their rental properties and don’t want their cover blown. And if people are happy with the property, they don’t want to upset their landlords,” Ms Graham said.
Tenants can be listed on utility bills as registered consumers but doing so exposes property owners to the taxman. Instead, Ms Graham said, many landlords kept utility bills in their own name and charged tenants directly.
“Most have no idea of how the system works when they first move to Malta and so just go along with it. It doesn’t help that estate agents seem entirely clueless about the system, either,” Ms Graham noted.
As a result, many such EU citizens receive utility bills charged at the so-called “domestic rate”, paying about 30 per cent more than those on the cheaper “residential” tariff.
To benefit from standard residential tariff rates, non-Maltese EU citizens must prove they are Maltese residents. But although such citizens must declare they reside here when applying for a local ID card, ARMS does not recognise this and insists on further proof.
Customers must put together multiple documents, from payslips to social security numbers, marriage certificates to proof of address, and present them to the Department for Citizenship and Expatriate Affairs in Valletta. In turn, the department issues them a registration certificate which clients then give to ARMS as proof of residency.
ACAG members say this is discriminatory because Maltese nationals only have to hand in their ID card to prove they are residents when applying.
An ARMS spokesman said that it usually took the company one week to process such applications. If the customer changed address, they did not need to resubmit residency documentation, the spokesman added.
But claims run directly counter to the experience of a number of such customers that The Times spoke to. One said that ARMS had taken “months” to process their application and that the bill they received while waiting was charged at the higher rate. Another simply laughed bitterly and asked: “Which week is ARMS talking about?”
ACAG spokesman David Reiling was similarly dismissive. “That’s absolute rubbish.
It took 81 e-mails and one month before ARMS confirmed my application,” he said, adding that each time he had re-applied following a house move, ARMS had insisted on him resubmitting all the necessary paperwork.
Ms Graham, who is a registered foster parent and regularly cares for Maltese children, said that ARMS did not even allow her to register the children as dependents and receive the concomitant bill reduction.
She threw her hands up in despair. “It seems I’m good enough to foster Maltese children but not good enough to get ARMS’ recognition of it. What nerve!”
The Government position is that ID cards given to EU citizens living here – and marked A for Alien – only prove temporary residency. Such ID cards will be phased out once newer cards are introduced. Until that happens, EU citizens living in Malta must dance to the bureaucratic tune or else receive bills charged at the higher tariffs, something ACAG members deem to be blatantly unjust but which ARMS says is simply in line with existing regulations.
ACAG members have written letters to the European Commission, MEPS and every Maltese MP asking them to petition on their behalf. The European Commission has already flagged the issue with the Government, sending it a letter of formal notice concerning the matter last September.
Ms Graham said that they had received “full support” from Alternattiva Demokratika, letters of support from some Labour MPs but no reply from any Nationalist MP.
“We know we have a case. I’m no lawyer, I’m just an ordinary woman. But someone has to speak up, because the way things are right now just isn’t right.”
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84 Comments
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Michael Bradbury
Nov 16th 2012, 20:17
Would like to put my name to help put Arms to order I've live here for four years and my bills as just getting silly now, please can some one let me no where I need to put pen to paper.
Regards
Michael Bradbury
David Willow
Nov 17th 2012, 09:22
email armsclassaction@gmail.com
or eucad.malta@gmail.com
or look for their facebook pages "Class Action Against Arms Ltd
Francesca Abela
Nov 15th 2012, 19:30
ARMS is yet another cock up from the great maestro Austin Powers Gatt, of the Arriva and smart city fame. What about the fact that you are charged twice , first on the estimated bill and then again on the actual bill. Case in point: my mother was over charges at 5 euros per sq m for an extra 20 units of water in an estimaed bill, when the actual bill came, they did not deduct the extra units .
Joseph Vassallo, (Bugibba)
Nov 16th 2012, 13:45
You are quite right madam, they don't deduct it from the ensueing actual readings... they hold it on credit and reflect it in future bills. It is a way of suureptitiously taking an interest-free loan from the consumer. 20 units @ €5 is €100 so they are holding €1m for every 10k consumers they do it to. Likely to remain charged at €5 too.
Frank Portelli 2BFRANK
Nov 15th 2012, 16:47
Most of us have been discriminated against
here we have it from the horse's mouth
http://www.timesofmalta.com/articles/view/20081016/opinion/subsidising-the-commercial-sector.229070
Julia Partridge
Nov 16th 2012, 00:37
Incredible .....using market forces to the best DISadvantage. Why am I surprised.
J Martinelli
Nov 15th 2012, 15:44
Why can't Parliament approve a Bill amending the Census form to include information whether the resident owns/rents and if the latter, how much per month and the landlord's name and address?
A list of landlords would then be forwarded to Inland Revenue who would scan their returns and look for property income. Another tax loophole plugged.
ARMS would then bill the renters as Maltese residents.
David Willow
Nov 16th 2012, 06:58
it is indeed interesting to note that the census completed last year there was a question about renting and how much a renter paid but no questions about the owner or landlord.
A A Camilleri
Nov 16th 2012, 08:49
census forms are supposed to be confidential as far as i know.
David Willow
Nov 16th 2012, 10:50
I agree yes they are so why was it required to hand it back to the person who delivered it without an envelope - everyone of those collectors could have read the contents - and all of them were likely to be someone we dont know. CONFIDENTIAL i dont think so
D. A . Agius
Nov 15th 2012, 15:30
I had a long drawn battle with arms which would not be resolved until finally someone with some sense there was given the case.
In the meantime, I kept paying an approximate rate for my consumption and had overpaid slightly by when these managed to clear up the mess they made.
Forget ARMS bills, take monthly readings and pay through their internet portal after calculating it there.
Leo Siliva
Nov 15th 2012, 14:02
And for locals who are complaining, this is what you get for joining the EU. But again the main problem is that we are talking about a public company, and there is no competition, which by the way goes against EU laws. So don’t be surprised if one day Malta gets fined from EU.
Gerard Sammut
Nov 15th 2012, 13:01
Just imagine if there is competition in this industry I am sure ARMS will change their attitude immediately.
Francis Raeymaekers
Nov 15th 2012, 13:10
Let's hook up to the Italian grid and be allowed to chose our energy supplier!
David Willow
Nov 15th 2012, 15:11
i like the idea of competition rather than monopoly... and i also like the idea of a grid connection and we can all say bye bye to ARMs - could anyone else be worse?
charles v schembri
Nov 15th 2012, 12:57
Not that I would wish to burden public officers unduly, but when filing a claim with ARMS I copied same to the Consumer Unit at the Ministry. The latter chased ARMS and within days I received the relative hefty refund.
And these at the Consumer Unit are civil servants that instill faith in the public service.
David Willow
Nov 15th 2012, 13:05
well done charles v schembri.....
Ray Woods
Nov 15th 2012, 12:50
I am told that ARMS has no appeals process. This is unbelievable in a modern European country. EU citizens including the Maltese do not get treated like this in the UK. Malta should be ashamed.
Ray Woods
www.maltabuyproperty.co.uk
ps get rid of these bendy buses that Boris Johnson sold you as a pig in poke!!
David Willow
Nov 15th 2012, 12:55
ray - arms class action have as many maltese residents who have joined as a result of the landlord situation..its not just non maltese eu citizens
David Willow
Nov 17th 2012, 09:26
@ray woods - does the property company in your post advise clients of the billing requirements of and by private landlords or in the case of purchasers the requirements to get RESIDENTIAL RATES as opposed to DOMESTIC RATES....actually that applies to the landlord question too
j brincat
Nov 15th 2012, 12:47
ARMS is a white elephant and it is not alone!
(jb)
Eman Formosa
Nov 15th 2012, 12:19
I fully agree with Mr Franco Abela's comments!
On one bill I lost or shall I say "was robbed" of €95 for the simple reason that a year's consumption was treated as 6 months consumption. Emails to customer care are UNANSWERED... Operators at customer care said they get back to me...NOTHING HAPPENED.
Michael Asquith
Nov 15th 2012, 13:43
Eman, you are not quite correct, I have had emails answered, to be told my complaint and email was 'sent to the department concerned'. After numerous further emails and 18 months waiting I realised that my original email had infact been sent to the 'department who are not concerned in the slightest'. Like many I guess I just gave up in the end, not worth the hassle and time.
David Willow
Nov 15th 2012, 15:15
it took me 81 emails over 5 weeks and heaven knows how many copies of id cards res certs payslips SSC number just to change consumer numbers - despite being a registered consumer for the previous three years with a different landlord,- The key here is to be either registered consumers on the account holders bill or have the account in your name (466euros) - NOT EASY and all of arms doing.
Francis Raeymaekers
Nov 15th 2012, 12:12
No EU citizen is an alien within the borders of the European Community. This is a fundamental cornerstone of all EU treaties passed since the first treaty. The current administration in Malta is well aware of this. It is with their authority that the current ARMS regulations were set up. Ministers are not fools. They just thought they'd get away with it for a while. Game's up but Welcome to Malta!
John Vella
Nov 15th 2012, 11:33
My ex landlord used to charge me 5euro per unit for water and 25c per unit on electricity. He used to tell me that when the arms bill came through he would pay me the difference. The meter wasn't even on his name as to avoid such taxes. When i demanded the bill to arms they refused to give me the bill because i was not the account holder. -_-!
David Willow
Nov 15th 2012, 11:22
anyone affected by this issue please feel free to contact then at armsclassaction@gmail.com or via their facebook pages https://www.facebook.com/groups/371466666251933/
thanks to you all
V. Cauchi
Nov 15th 2012, 11:07
So now I understand why we were told we would make it in the EU: with a little bit of craftiness and by reaping the fringes. While still living in a national cocoon of selfishness, we fail to grasp the high-faluting concepts Solidarity/Subsidiarity which we bandy around in speeches and apologias pro vita nostra in EU fora. With some more financial craftiness we could have also done w/out the EU.
Mr.W Cassar
Nov 15th 2012, 10:59
I hope they win, we are all equal or else why on earth did we join the E.U?
Henry S Pace
Nov 15th 2012, 10:57
' Several landlords don’t pay any tax on their rental properties and don’t want their cover blown '
TAX EVASION GALORE.. - STATE AIDED..
David Willow
Nov 15th 2012, 11:23
exactly - and government approved.
Franco Abela
Nov 15th 2012, 10:56
Biex ma nsemmux kif l-ARMS qed iccahhad l-ECO reduction lil diversi nies li jaqbzu it-threshold f 6 xhur imma mhux ta sena shieha. Min jahdem fl-Arms jaf x qed nghid.
Frank Portelli 2BFRANK
Nov 15th 2012, 10:46
Not Only Aliens
http://www.timesofmalta.com/articles/view/20081016/opinion/subsidising-the-commercial-sector.229070
Anthony Arpa
Nov 15th 2012, 10:35
Some tenants here are confirming the way they are being robbed by their Landlords... Now this is a clear proof ... The Question is this ... Will the authorities investigates these cases?
David Willow
Nov 16th 2012, 07:08
no probably not - even Gonzi himself said he couldnt use any information gleaned from applications to ARMs as a witch hunt for potentially tax evading landlords -as " that would be hurting the very people we are trying to help"
john Attard
Nov 15th 2012, 10:17
Don't you think that the different tariffs have to do with the subsidy we receive depending on the number of persons living in the property, under the residential regulations?
One tariff for all means pay more....... Maybe as much as you will pay in Germany or England. How about income/pension...is it the same?
Re Tax issue, it's about time this is brought under control
Jonathan Barnes
Nov 15th 2012, 11:11
Please read the story, it is to do with the tarrif and not the number of occupants, although this does apply. As "residents" we should be paying residential, NOT domestic. Then the occupancy is taken into account.
arms, the Department for Citizenship and Expatriate Affairs, and the mep's have all allowed this situation to continue, they should all face legal proceedings.
David Willow
Nov 15th 2012, 11:25
at John Attard we are EU citizens as well and we live here permanently just like you (eu citizens) do and we can prove we reside here - and are ALLWAYS asked repeatedly to do so is that fair - I DONT THINK SO
Tony Stivala
Nov 15th 2012, 10:09
I thought EU means equality and freedom of movement for EU citezens
How ignorant!!!! we are approaching 2013 and we still call humans ALIENS.
The third world must be laughing themselves silly at us.
Mr Tony Gatt
Nov 15th 2012, 10:39
The Americans do it. Enough said!
Pauline Thompson
Nov 15th 2012, 11:06
Mr Gatt so the Americans do it - that makes it right does it?
Jonathan Barnes
Nov 15th 2012, 10:05
I am also a victim of this, and for seven years even had to pay thirty percent extra on what my landlord thieved as the electricity supply went to his garage as well. Another illegal act that is "accepted" here! However, if "arms" wont rectify this matter then where is the eu? Has nobody there got the guts to stand up and protect "its" citizens? FAILURE ON ALL SIDES !!!
john Attard
Nov 15th 2012, 10:38
I think you failed yourself because if you knew he was using your meter for his services, then you should have taken action.
Jonathan Barnes
Nov 15th 2012, 11:26
Obviously i complained, but what else do i do, a large pair of snips and cut the cable???? By your comments you obviously agree to this illegal system, People please note, maybe this is one of the perpertrators mentioned in these comments.
David Willow
Nov 15th 2012, 11:27
john please get in touch with armsclassaction@gmail.com
or join them at https://www.facebook.com/groups/371466666251933/
Julia Partridge
Nov 15th 2012, 09:50
I am not aware of any other EU country where there are differential charges based upon citizenship status. No Maltese person in the UK gets charged a higher rate for their electricity than their UK neighbours. It is ridiculous, archaic, and illegal.
George Joseph Cauchi
Nov 15th 2012, 10:23
You are absolutely right and we Maltese citizens do not see why you should be discriminated against unless there are some serious reason to the contrary.
Joe Spiteri
Nov 15th 2012, 10:42
They neither pay higher rates for electricity nor for using public transport!
Pauline Thompson
Nov 15th 2012, 11:25
Very true Julia - not only that, it's also with bus fares. Anyone using UK public transport pays the same fare & not a higher price like in Malta because they are not Maltese. Whether it is Arriva who implemented the higher charge or not. It boils down to the government to stop this discrimination, in particular, Malta so much relies on tourism!
Mr Alfred Baldacchino
Nov 15th 2012, 09:50
Come on ARMS: admit you were wrong, bill everybody in line and let's carry on with life.
Peter Murray
Nov 15th 2012, 09:43
May I suggest a radical solution -don't pay such an unfair and unjust bill?If you are being charged a discriminatory rate simply calculate the rate a Maltese citizen would pay and submit that amount as payment.Furthermore,never ever pay an "estimated" invoice demand as it is illegal to make a demand for services rendered which are merely presumed as utilised or one which is and based on past usage
Julia Partridge
Nov 15th 2012, 09:52
We tried that and were threatened with disconnection. We now pay 1000 euros each month to prevent this happening.
Peter Murray
Nov 15th 2012, 10:21
That is all it is -a threat- and one which would remain unfulfilled especially if a lot of people are involved-trust me.By paying something you are not refusing to pay merely contesting the amount to be paid.
Mr Tony Gatt
Nov 15th 2012, 10:42
@ Julia Partridge
1000 euro? Are you running a business?
john Attard
Nov 15th 2012, 10:55
Mrs. Partridge,
That's a lot of power you're using. I don't spend that in a year with 5 dependents. A business with cold storage would have such an expense.
Franco Abela
Nov 15th 2012, 11:13
@ john Attard
you must have solar panels. If not I can't believe you spend less than 1000 in a year with 5 dependents! Unless they are babies.
We are 2 persons. Use energy savers/leds, gas heather and am very attentive on what I consume and bill is always around 900 euros a year!
David Willow
Nov 15th 2012, 12:09
at john attard-your not aware of the circumstances to make such a statement "that's a lot of power your using" plus you are assuming that its power used not estimated or a faulty meter plus the rates difference too. I know the circumstances - and you don't - believe me there are many situations like this one and its not as clear cut as you seem to think it is..plus there's the threat of disconnection
Julia Partridge
Nov 16th 2012, 01:21
@ John Attard - we are still awaiting the checking of the meter. An Independent test showed that it was not accurate and we were being shown as consuming electricity that could not be traced back to appliances. That remains unresolved. Also being on the higher rate to start with means that you very quickly get to the highest unit rate. Some of our bills were charged at 77cents per unit.
Anthony Arpa
Nov 15th 2012, 09:42
Another case which proves what i have always said ... That if all Business men and self employed pays what they should pay as VAT or Tax which is same as what all employed people do .... Malta will be another Montecarlo with out the need for sacrifices by the Workers/Pensioners
Mario Vella
Nov 15th 2012, 10:17
100 points Mr. Arapa ..... that is all about. Yesterday I went to the VAt Dept. every one paying 60 euros , 100 euros , and there was even a person with a ridiculous amount of 20 euros. Come on this is nonsense. Paying the return for these amount is much more worth it living on social benefits rather being a self employed. The government should start investigating ...........
Lawrence Fenech
Nov 15th 2012, 09:35
What a jungle. Most electricity and water meters have been changed to smart meters but we still get the meter reader knocking on our door to read them. ARMS were are you?
Tessa Taylor
Nov 15th 2012, 09:33
Do Maltese resident in other EU states have to pay more for electricity and water - I don't think so.........
Peter Murray
Nov 15th 2012, 09:59
Answer Tessa is a resounding NO -nor do they pay more to travel on public transport.
Pauline Peterson
Nov 15th 2012, 09:30
I applaud Ms Graham for taking the initiatives, and wish her and those who also sign up for this class action, a quick (if that is possible) solution.
It has been going on for far too long. It is discriminatory and unjust. Please keep us informed of the progress Ms Graham. We are with you 100%.
Mr Aquilina Joseph
Nov 15th 2012, 09:27
Shame on you...everything is like that here..very frustrating...hope you are successful in your suit...it makes my blood boil..its so bad some people consider moving back...makes us like a third world country..
Alan Kay
Nov 15th 2012, 09:26
While supporting the equal treatment of all under EU law, this action will be a double edged sword if ARMS do lose.
They will standardise the rate for both Maltese & EU citizens - which will be at the higher rate and which is probably their end game.
"Look it wasn't us it was the foreigners and the EU!" At a stroke utility costs rise by 30%?
Peter Murray
Nov 15th 2012, 10:02
Not a logical deduction as then subsidies would automatically and unjustifiably have to be removed and the same would then apply to public transport -with an election looming would you take such an action ?Also the incoming government have made it part of their manifesto to reduce such tariffs
john Attard
Nov 15th 2012, 10:22
It is important to us Maltese who earn much less than our counterparts. I do not think voters consider these matters in the elections.
Alan Kay
Nov 15th 2012, 10:45
@ Mr Murray: hadn't realised the "incoming government" had been decided, although notice it is part of Muscat's agenda, for what that is worth.
It is naive to think ARMS would accept it has to apply a 30% reduction across the board to all on the domestic rate, should it lose this case.
I agree about ARRIVA, same principle. Be several elections before any resolution in any case.
Peter Murray
Nov 15th 2012, 13:04
Care to have a bet about who will be the next ruling party Mr Kay?In any event ,your logic remains still flawed
Peter Murray
Nov 15th 2012, 13:05
Care to have a bet about who will be the next ruling party Mr Kay?In any event ,your logic remains still flawed
Mr Tony Gatt
Nov 15th 2012, 09:22
Tell me about it. I had a flat in Malta-no tenants- and I had to pay the discriminatory rates on utility bills. Discrimination pure and simple. I hope these people win their case.
K. Vella II
Nov 15th 2012, 11:55
Tony, in your case the Domestic rate on your flat is correct, as there are no tenants, declared or otherwise. The Domestic rate is an indirect tax on vacation houses and multiple properties (e.g. if you have a number of garages not directly attached to your primary residence).
David Willow
Nov 15th 2012, 12:12
so what about the Maltese resident in Uk or any other EU member state, and i bet they have a house here too - and i further l bet they kept their Maltese id card and pay the same rates as everyone else both here in malta and in the uk...a little unfair dont you think?
twanny borg
Nov 15th 2012, 09:21
il-gvern ghandu jsib mezz kif l-eluf li jikru jridu jhallsu t-taxxa bhal fqir u l-batut. veru tal-misthija ftit biss jiddikjaraw il-qlieh minn kirjiet f'malta. l-aktar li jevitaw huma s-sinjuri meta se jsir xi haga? iz-zewg partiti mohhom biss li ma jitilfux il-voti. dejjem nghid li hemm bzomm kumitat miz-zewg nahat tal-kamra li jresqu certi ligijiet li partit wahdu mhux kapaci jiehu.
Mark Vella
Nov 15th 2012, 09:33
Sewwa....so now the rental rates will go up sharply. Plain and Simple. Plus if you can't afford it, well.... sleep on the road.
twanny borg
Nov 15th 2012, 09:48
@mark vella- it-taxxa trid tingabar u mhux tinzamm mis-sidien. jekk bl-istess argument imissu kulhadd f'kollox izomm it-taxxa ghalih. il-lum is-suq jaghmel il-prezz tal-kirja. is-sidien mhu se jgibu rispett lil hadd. ninsisti li s-sinjuri jridu jhallsu dak li huwa dovut jekk ma jridux ihallu l-postijiet battala jhallsu l-kontijiet ghal xejn.
Jason Scerri
Nov 15th 2012, 11:23
Mr Borg, i agree with you 100%. It's about time that the tax evasion issue is taken seriously. and I don't agree with Mr Vella that the rental rates will go up. There are so many vacant properties and a lot of competition.
Jay Oatmon
Nov 15th 2012, 09:19
ARMS will lose this class action suit - because the regulations are self imposed and not the law. It may be an ARMS regulation but it is not lawful in my opinion.
J Farrugia
Nov 15th 2012, 09:19
Take them to the cleaners and if they do loose Gonzi himself and his high paid MP's should pay the fine out of their own pocket.
Shame the Maltese themselves have no guts to do this as well, we talk and moan but don't do jack about it.
Saviour Sam Agius
Nov 15th 2012, 09:14
Apart from that, it takes the Department for Citizenship and Expatriate Affairs in Valletta at least 4 weeks to process one's papers (even for EU citizens), so add that to ARMS' burocracy and you've got a couple of months waiting ...
Paul Caruana
Nov 15th 2012, 09:13
What a mess! With enemalta deeply in the red, the opposition making dangerous promises of cutting the utility bills, foreigners complaining of discriminatory treatment, and the marsa power station about to collapse, someone better start taking the unpopular decisions to make our electrical power generation system sustainable before we all end up in the dark!
Vincent Gauci
Nov 15th 2012, 09:27
Rather Naive! Politicians don't take unpopular decisions.
Peter Murray
Nov 15th 2012, 09:39
Vincent there are many "naive" politicians no longer in office because of such failures to take an "unpopular" position
Please choose the reason of your report below: