When consumers become involved in a dispute with traders due to a problem related to the purchase or hire of a product or service, the Consumer Claims Tribunal (CCT) ensures consumers obtain an effective redress when all attempts to reach an amicable settlement fail.
In fact, claims before this tribunal can only be submitted after amicable solution through mediation by the Office for Consumer Affairs, or by a registered consumer association, fails.
The main advantage of the CCT is that its fees are low and therefore affordable. The fee for filing a claim varies according to the value being claimed. The lowest fee to file a claim is €9.20, while the highest is €25.50.
The latter is payable when the amount claimed is between €2,329.38 and €3,500. Claims presented in front of the Consumer Claims Tribunal are, in fact, limited to €3,500, or else the claimant must declare he is abandoning the amount in excess of €3,500 by signing a declaration on the claim form.
Besides granting compensation claimed by consumers, the arbiter presiding the tribunal sitting may also award to consumers up to €500 as compensation for moral damages caused by any pain, distress, anxiety and inconvenience suffered.
If the arbiter considers that a claim presented before the tribunal is vexatious or frivolous, they may order the claimant or defendant, as the case may be, to pay to the other party a penalty of not more than €120.
Once a claim is put before the tribunal, the trader is informed and may reply and/or make a counter claim. If no agreement is reached between the two parties, a date, time and place of the hearing before an arbiter is arranged by the tribunal.
At the hearing, both parties are given the possibility to state the facts of their case under oath. It is therefore in the best interest of both consumers and traders to attend the hearing. If either party fails to do so without an acceptable reason, the tribunal may then decide the case against the missing party.
Both parties are advised to be well prepared for the hearing and to take with them all necessary documentation, such as any letters, invoices, bills, sales slips, contracts, photographs and other similar documentation. Witnesses may also be summoned during these sittings.
The parties involved in the claim do not need a legal procurator or a lawyer to represent them. However, the parties still have a right to engage one to assist them.
If such assistance is hired, all related expenses must be paid by the person engaging the legal assistance, regardless of whether the claim is won or lost.
Whoever wins the case may enforce the tribunal’s decision just like a court judgment. First, however, the losing party should be given reasonable time to abide by the tribunal’s decision. The losing party may appeal the arbiter’s decision.
In cases where the amount of the claim in dispute is under €1,200, the appeal may be on any matter relating to the jurisdiction of the tribunal and on any question relating to prescription.
It is also always possible to appeal in those cases where the arbiter has acted contrary to the rules of natural justice and as a result seriously prejudiced the outcome of the case.
When the claim exceeds €1,200, it is possible to appeal on all grounds. Appeals, however, can only be filed within 20 days from the date of the arbiter’s decision.
Should the trader refuse to abide by the arbiter’s decision, consumers may engage legal assistance and resort to court if necessary.
As per article 25(3) of the Consumer Affairs Act, the court fees to enforce the tribunal’s decision are half those normally due.
More information about the CCT can be obtained by contacting the secretary on 2122 7070 or by calling at 47A, South Street, Valletta.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.