BRIEFING ON THE EUROPEAN SMALL CLAIMS PROCEDURE
CONSUMER PROTECTION
Executive Summary The FIA welcomes the European Commission’s proposal to simplify and speed up the European Small Claims Procedure. In the Single Market, it is crucial that citizens can benefit from a high level of legal certainty when they purchase products or services in another Member State. A high level of protection implies that consumers can easily comprehend, access and afford legal action throughout Europe. Based on the Commission’s proposal, the FIA calls on the European Parliament and Member States to:
Increase the threshold for cross-border claims to €10,000, to provide consumers with a simplified procedure for disputes with higher value Limit court fees for the procedure to a maximum of 5% of the claim Inform consumers and judges about the procedure Ensure effective enforcement of the rulings, to provide legal certainty to consumers Consider using videoconferencing, to decrease the cost of court proceedings, when hearings are needed
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Legislative Background On 19 November 2013, the European Commission published a proposal1 to revise the Regulation 861/2007/EC on the European Small Claims Procedure. This Regulation intends to facilitate access to justice by simplifying and speeding up cross-border litigation concerning small claims. It also contributes to enabling recognition and enforcement beyond the country in which the judgement is given. More specifically, the proposal aims to:
Raise the ceiling of cross-border claims from €2,000 to €10,000
Extend the definition of cross-border claims
Provide a maximum limitation on court fees to be charged for the legal procedures
Broadly allow the use of electronic communication such as videoconferencing
Impose obligations for national authorities to inform and assist citizens in lodging a complaint
European Consumer Centres Network2 confirmed that the Regulation 861/2007/EC did not deliver the expected benefits, mostly due to a lack of consumer awareness. The proposal, therefore, seeks to increase the Regulation’s efficiency and enhance the performance of the Single Market.
FIA Region I Position Through its 75 European Touring and Motoring Automobile Clubs, FIA Region I represents more than 38 million mobile European citizens. FIA Clubs are frequently asked to provide legal assistance to their members on the procedures to lodge complaint in a third country. The European Small Claims Procedure contributes to the realisation of the internal market by providing consumers with adequate legal protection for cross-border transactions. Therefore, the FIA welcomes the Regulation revision and urges the European Union institutions to improve consumer awareness of the procedure.
1
European Commission, “Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 861/2007 establishing a European Small Claims Procedure and Regulation (EC) No 1896/2006 creating a European order for payment procedure, COM (2013 794 final, Brussels, 19.11.2013 2 European Consumer Centres Network, “European Small Claims Procedure Report”, September 2012
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Increase the cross-border claim threshold The FIA strongly supports the extension of the scope of the Regulation to cross-border claims up to €10,000. Several Member States have already increased the threshold amount. The Commission has rightly noted that the scope of the Regulation should be adapted to cover higher value claims.
Limit court fees charged for procedures A maximum limitation of court fees is essential since claimants may be dissuaded from bringing actions forward due to high fees. The proposal ensures that court fees cannot exceed 10% of the overall claim value. While the FIA welcomes the setting up of a maximum rate, we consider that a 10% fee could still discourage legal action. Therefore, the FIA proposes a maximum limitation of 5%, which seems a more balanced approach to encourage European consumers to make use of small claims procedures on crossborder claims.
Improve awareness among judges and consumers According to a recent Eurobarometer survey3, 86% of Europeans have never heard of the Regulation and only 1% of respondents have used the procedure. This lack of awareness should be met with measures to help citizens identify the competent jurisdiction under which they can register claims. According to the ECC-Net, 47% of interviewed judges had no knowledge of the procedure. The lack of awareness among professionals is a clear barrier to the information spreading to consumers. We encourage Member States to identify specific court authorities, which would be responsible only for handling small claims. Consumer organisations, but also tourism-related organisations could provide free of charge assistance in directing consumers and providing them with support to complete the application form. Today, consumers are, in many cases, referred to a webpage rather than guided through the procedure by national authorities.
Ensure effective enforcement of rulings The FIA believes that effective enforcement of decisions is key to strengthening awareness and enhancing consumer trust in the procedure. In this regard, the Regulation should set procedural deadlines that aim to speed up the proceedings and implement sanctions for the non-observance of such deadlines. In our view, the certificate of enforcement should be duly translated in the language of the country of enforcement.
3
European Commission, Special Eurobarometer 395, “European Small Claims Procedure”, November-December 2012
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Make better use of distance communication means The use of electronic communication between the parties and the courts should be prioritised and expanded to the sending of documents. Electronic communications should be given the same weight in court as communications by post, in order to save time and resources. Once a critical mass of consumers makes use of the procedure, courts should consider investing in videoconferencing in order to keep procedure costs as low as possible, both for the claimants and for the administration.
Fédération Internationale de l’Automobile (FIA) Region I office FIA Region I represents 111 Touring and Motoring Clubs in Europe, the Middle East and Africa, which total more than 38 million members. The FIA represents the interests of our members as motorists, riders, pedestrians and passengers. FIA Region I is working to ensure safe, affordable, clean and efficient mobility for all.
June 2014 |©FIA 2014 | All rights reserved
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