As of last Tuesday, August 31, the amount of compensation consumers can request when filing a claim with the Consumer Claims Tribunal increased from €3,500 to €5,000.
New tribunal fees also apply as from this date. While the minimum fee is now €9.50 for claims that do not exceed €580, the maximum fee is €30 for claims between €3,500 and €5,000.
The tribunal may hear claims of consumers who have problems with goods or services bought or hired from a trader for their personal use. However, before taking a case to 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.
While only consumers can initiate proceedings against traders through the tribunal, once traders are informed about the claim against them, they may reply and also make a counter-claim. The Consumer Claims Tribunal may also hear a case initiated before a court and which later, by agreement between the consumer and the trader, is referred for hearing before the tribunal.
An important advantage of this tribunal is that legal representation is not a requirement
An important advantage of this tribunal is that legal representation is not a requirement. It is up to the consumer, or the trader against whom the claim is made, to choose whether to hire a lawyer to represent them. If, however, a lawyer is engaged, then the lawyer’s legal fees must be paid by the person who hired the lawyer, irrespective of whether the case is won or lost.
Once the tribunal’s secretary schedules the date for the hearing, it is mandatory for both the consumer and trader to attend. If for a valid reason one of the parties cannot attend, the tribunal’s secretary must be notified immediately so that the hearing is rescheduled to another date. Failure to attend may result in a decision against the missing party.
Any documentation or evidence related to the case should be brought at the hearing to help establish the facts concerning the dispute. At the sitting, both parties are given the possibility to tell their side of the case, and this is done under oath. Witnesses can also be summoned. 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’s 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 judgment. The losing party must, however, be given reasonable time to honour the decision.
Independently of the value of the claim, the losing party has the possibility to appeal the decision on any matter relating to the jurisdiction of the tribunal and on anything related to prescription. It is also possible to appeal in cases where the tribunal acted contrary to the rules of natural justice, and as a result, seriously prejudiced the outcome of the case.
Where the claim exceeds €1,200, an appeal can be made on all grounds. The time limit to appeal the tribunal’s decision is 20 days from the decision date.
The MCCAA can issue public warning statements against traders who decide not to honour the tribunal’s decision. This to inform and warn consumers about defaulting traders.
For more information about the Consumer Claims Tribunal, contact the tribunal’s office on 2122 7070.
Odette Vella, director, Information and Research Directorate, MCCAA
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