Photo: Matthew MirabelliPhoto: Matthew Mirabelli

The Malta Competition and Consumer Affairs Authority would like to clarify any misconceptions in connection with the Fantasy Tours issue – which has dominated the media for the past few weeks.

On October 26, 2012, the Office for Consumer Affairs at the authority had issued a public warning statement against Golden Travel Club Ltd, operating under the trade name Fantasy Tours.

Services by this company were unsatisfactory and the company did not honour the Consumer Claims Tribunal (CCT) decisions, which ruled in favour of consumers in complaints lodged against this company.

The statement had the desired effect, as by July 2013, Golden Travel Club Ltd had honoured all decisions by the tribunal and compensated consumers accordingly.

Early last month, consumers who booked a holiday with Fantasy Tours started receiving an SMS from Golden Travel Club Ltd, informing them that their tours had been cancelled. When consumers tried to call personally at Golden Travel Club Ltd outlets, they found them closed.

Faced with this situation, consumers had two options: they could either submit their complaint to the director general (Consumer affairs) or to a registered consumer association. The legislation provides that either option can mediate between a consumer and a trader to try to reach an amicable settlement.

Starting from August 8, a large number of consumers started calling the Office for Consumer Affairs at the MCCAA to complain about Fantasy Tours. Immediate action was taken to ensure consumers were efficiently helped and that all incoming complaints were registered, following the submission of the relevant information and documents by consumers.

From August 8, a large number of consumers started calling the Office for Consumer Affairs

On the same day, the director general set up a meeting with the Malta Tourism Authority (MTA), which is responsible for the en­forcement of the Package Travel, Package Holidays and Package Tours Regulations. A meeting was also held with the Police dealing with this case and MTA to further discuss the matter.

Upon the director general’s initiative, further meetings were held with both the MTA and the Police and regular contact has been maintained ever since. Police investigations are still ongoing.

In the meantime, the shareholders of Golden Travel Club Ltd have filed for bankruptcy and have asked the court to appoint a provisional administrator to run the company on an interim basis.

Since the Consumer Association had advised consumers not to lodge complaints with it but referred them to the MCCAA, the Office for Consumer Affairs at the authority assumed the responsibility to accept such complaints in spite of the fact that, under these extraordinary circumstances, it was not in a position to mediate between consumers and the trader.

However, as a result of the immediate action taken by the director general, the authority is now in a position to submit, if required, a comprehensive list of the registered complaints with the administrator, once this person is appointed by the court.

It is important to clarify that the recent filing of a judicial letter by a number of consumers against the shareholders of Golden Travel Club Ltd is a private initiative taken by a number of consumers.

The authority cannot initiate such proceedings, nor can it represent consumers in judicial proceedings. It is therefore advisable that the consumers concerned seek legal advice with regard to the notification of their credit claims to the civil court and/or provisional administrator that is to be appointed.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

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