THE Consumers’ Association yesterday welcomed the government’s decision to set up a consumer claims tribunal that would be tasked with settling disputes out of court.
The decision was announced by Trade and Industry Minister George Lillikas, who said the tribunal, expected to be up and running early next year, would swiftly settle claims of up to £3,000.
“The time and cost needed for a consumer to claim his rights in relation with small financial disputes are factors which discourage consumers from applying to justice,” the minister said.
He added that the tribunal would take a maximum of three months to process a claim.
Consumers’ Association chairman Petros Markou welcomed the move, which had been long awaited: “We have been demanding this for many years.”
“It is a positive step, which allows the swift resolution of disputes,” Markou said.
According to the bill, approved by the Cabinet on Wednesday, the disputes would be heard by lawyers – arbitrators – who would be proposed by the Legal Council and approved by the minister.
A list would be published in the Government Gazette, and the selection would be in accordance with their ranking on the list.
For claims up to £1,000, the arbitrator would be paid £50 per case.
Cases over £1,000 would cost £100.
The arbitrators would be authorised to award compensation as well as charge any amount they deem necessary as expenses related to the case.
Such expenses could be charged for expert services pertaining to a specific case.
Procedures would be much simpler than those followed in courts, thus making it easier and less time-consuming for the parties involved, the minister said.
And parties who are not happy with the decision could ask for re-evaluation by another body made up of two other arbiters.
However, parties cannot apply to a court while their case is pending with the tribunal.
They do have the though right to go straight to court without going to the tribunal.
And people can go to court if they are still not happy after the tribunal’s decision had been reviewed.
Consumer claims tribunals will be set up in all districts.