Out-of-court redress
164. Member States are also urged to encourage
traders to inform consumers of their codes of conduct where they
exist (Article 10(1)), and to encourage the setting up or development
of adequate and effective out-of-court complaints and redress
procedures for the settlement of consumer disputes under the new
directive (Article 10(2)).
165. We were told that consumers may take timeshare
complaints to OTE about its members, and there is an alternative
dispute resolution scheme which has so far only been used once
(pp 13-16), but we also heard that many companies are not members
of the OTE. The OFT stressed that much of the problem with holiday
club activity was outright fraud and that rogues "will not
sign up to any informal redress scheme" (Q 93).
166. The TCA supported the idea of an EU-wide
timeshare ombudsman scheme, on similar lines to the UK's Financial
Ombudsman Service: this would require a licensing system for companies
but could "solve a lot of not only redress problems but also
act as a deterrent" (Q 31).
Conclusions and Recommendations
167. We conclude that the provisions on individual
redress in the directive, although an advance on the 1994 Directive,
are insufficiently robust. (para 165)
168. We recommend that the proposed directive
be amended to entitle consumers to require that, in the first
instance, an out-of-court settlement be sought through an independent
arbitration or mediation scheme, without prejudice to the consumer's
right of judicial action. (paras 166-167)
169. We recommend that the Commission report
to the Council and Parliament in 2010 on progress in the development
of out-of-court redress schemes in these sectors. (para 166)
