The amount of compensation consumers can request when filing a claim with the Consumer Claims Tribunal has increased from €5,000 to €10,000 as of July 14.
New tribunal fees also apply as from this date. While the minimum fee is €9.50 for claims not exceeding €580, the maximum fee is €43.50 for claims of between €8,500 and €10,000. For claims between €580 and €8,500, the fees vary between €14 and €39, depending on the amount of compensation being claimed by consumers.
The Consumer Claims Tribunal is specifically designed to hear claims of consumers who have problems with goods or services bought or hired from a trader. Before submitting a claim before the tribunal, consumers must first try to reach an amicable agreement with the trader through the conciliation process offered by the Malta Competition and Consumer Affairs Authority or a registered consumer association.
Only consumers may take their disputes with traders to be heard before this tribunal. Furthermore, consumers may only make a claim for a remedy or compensation when their complaint concerns goods or services that they bought or hired from a trader and used for their own personal needs.
The Consumer Claims Tribunal may also hear and decide on cases regarding to any counter-claim by a trader if the consumer had made a claim against the same trader before the tribunal.
Consumers may also submit a claim for moral damages caused by any pain, distress, anxiety, and inconvenience suffered
Cases that start to be heard before the civil court and which later, by agreement between the two parties, are referred to the tribunal, may also be heard.
An important advantage of the tribunal is that legal representation is not a requirement. This makes the possibility of redress through the tribunal accessible to all consumers as they do not need to incur any legal fees.
If either the consumer or the trader decide to engage a lawyer to represent them during the tribunal’s proceedings, all legal expenses must be paid by the party engaging the legal assistance regardless the outcome of the claim.
In the tribunal, consumers may also submit a claim for moral damages caused by any pain, distress, anxiety, and inconvenience suffered.
The maximum amount that may be awarded for moral damages is €500. On the other hand, if the arbiter considers that a claim presented before the tribunal is vexatious or frivolous, the defaulting party may be ordered to pay the other party a penalty of not more than €120.
When a claim is submitted before the tribunal, the latter informs the trader about the claim against them. At this point, it is still possible for the two parties to resolve the dispute amicably. If the trader rejects the consumer’s claim, a date for the sitting before the arbiter is scheduled.
It is mandatory for both consumers and traders to attend the hearing. The new provisions regulating the Consumer Claims Tribunal proceedings now also offer the possibility for consumers and traders to opt for a virtual sitting instead of attending physically the tribunal’s hearing.
If, for a valid reason, one of the parties cannot attend the sitting, the tribunal’s secretary must be notified immediately so that the hearing is rescheduled to another date. Failure to attend the hearing may result in a decision against the missing party.
While the tribunal’s proceedings are less formal than traditional court proceedings, both parties are still advised to be well-prepared for the hearing. Any documentation or evidence related to the case should be brought to the hearing to help establish the facts concerning the dispute.
At the sitting, the two parties are given the possibility to tell their side of the case under oath. Witnesses can also be summoned for these sittings. Should a witness refuse to attend, and the tribunal deems the evidence important, it may issue a ‘summons to witness’, ordering the witness to attend.
After the tribunal hearing, the arbiter’s decision is communicated by post to both parties. Whoever wins the case may enforce the tribunal’s decision, just like a court judgement. The losing party has the possibility to appeal within 20 days from the date of the sentence.
If no appeal is lodged within 20 days, consumers may contact the trader and request the compensation or remedy decided by the tribunal. Should the trader refuse or ignore the consumers’ request, then consumers need to seek legal assistance to execute the tribunal’s decision.
The Office for Consumer Affairs follows up on the tribunal’s decisions and if traders refuse to abide by these decisions, the office may issue a public warning statement to inform and warn consumers about defaulting traders.
For further information about the Consumer Claims Tribunal, one can contact the tribunal’s office on 2122 7070.