Consumers have the right to claim some form of redress when a problem with a product or service purchased crops up. Ideally, problems are resolved with the trader or service provider without the need for third party intervention, but this is not always the case.
When no agreement with the trader is reached, consumers need to register a complaint with the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority, so that mediation is carried out with the aim of reaching an amicable solution.
When even mediation proves to be insufficient in resolving the dispute, then consumers may submit a claim before the Consumer Claims Tribunal.
Only consumers can take their claim before this tribunal and the claim should be about goods or services bought or hired from a trader and used by the consumer for their own personal needs.
The amount of compensation claimed through the CCT cannot exceed €3,500. The tribunal may also award the consumer up to €500 in compensation for moral damages caused by any pain, distress, anxiety and inconvenience the consumer might have suffered because of the case under examination.
To make a claim before the tribunal, consumers need to fill in the Notice of Claim and return it to the tribunal’s secretary.
One of the main advantages of this tribunal is that the costs to open a claim are minimal. The fee varies according to the value being claimed. The maximum fee is €25.50 when the amount claimed is between €2,329.38 and €3,500.
Furthermore, consumers do not need to hire a lawyer to represent them. Hence, there are no legal fees to pay. If, however, a lawyer is hired, then who engages the lawyer has to pay the legal fees, even if the case is won.
At the hearing, both parties have the possibility to state the facts of the case under oath. Hence, both consumer and trader should be well prepared for the hearing so that their case is explained in the best possible way.
Failure to attend without a valid reason may lead the tribunal to decide the case against the missing party. Who is unable to attend the hearing should inform the tribunal’s secretary before.
The parties involved should also bring to the hearing all evidence that concerns the dispute, such as any letters, invoices, bills, sales slips, contracts, photographs and anything else which may help establish the facts concerning the dispute. Witnesses could also be summoned during these sittings.
After the hearing, the arbiter will deliver the decision. Who wins the case may enforce the tribunal’s decision just like a court judgment. The losing party has the possibility to appeal against the decision.
An appeal should be registered within 20 days from the date of the arbiter’s decision if the claim exceeds €1,200. If the amount of the claim is lower than €1,200, an appeal can be made only in relation to:
• any matter pertaining to the tribunal’s jurisdiction;
• any aspect of prescription;
• any action of the tribunal which is considered as contrary to the rules of natural justice and hence seriously prejudices the appellant’s rights.
After the 20 days elapse, the consumer can contact the trader, asking for the compensation according to the tribunal’s decision. If the trader refuses, the consumer should then engage a lawyer and resort to court if necessary.
The Office for Consumer Affairs follows up on the tribunal’s decisions and may issue a public warning statement against those traders who refuse to abide by these decisions.
More information about the Consumer Claims Tribunal can be obtained by contacting the tribunal’s secretary on 2122 7070.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.