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CMA steps in where the CAA fears to tread

CMA investigates and takes enforcement action

The Civil Aviation Authority (CAA) should be the regulator for air transport in the UK. However, it is increasingly clear that the Competition and Markets Authority (CMA) is doing the CAA’s job for them.

During the course of this year the CMA has taken action against a number of companies which were not giving full refunds where they were owed due to coronavirus cancellations.

This includes: Sykes Cottages and Vacation Rentals in June, Bijou Weddings Group in September and yesterday (15 December) the announcement that following CMA action, LoveHolidays. The company had committed to pay out over £18 million to customers waiting for money back after their holidays were cancelled due to coronavirus.

CAA: A regulator that fails to regulate

In July the CAA reported on its airline refunds review. A number of airlines were found to be hugely failing in their legal duties and they gave commitments to the CAA to resolve the matters. For example, on 3 July, Ryanair published a set of commitments on its website about timescales for processing cash refunds.

Ryanair confirmed that 90% of its backlog would be cleared by the end of July 2020 with all refund claims made in April to be processed by 15 July and most of the claims made in May to be refunded by the end of July. This statement has not been updated and just a quick glance on Twitter and in Facebook groups dedicated to Ryanair complaints shows that Ryanair customers are still waiting for refunds.Ryanair aeroplane in sky Dean Dunham AviationADR CEDR

Commenting on the review, Richard Moriarty, CAA Chief Executive said: “The airlines we have reviewed have responded by significantly enhancing their performance, reducing their backlogs, and improving their processing speeds in the interests of consumers.

“There is still work to do. We have required commitments from airlines as they continue the job of paying customer refunds. Should any airline fall short of the commitments they have made, we will not hesitate to take any further action where required.”

However, the CAA has failed to take any further action, appearing to believe that no further action is required.

CAA defers but the CMA brings action

It would appear that the CMA disagrees. Today, 16 December, the CMA announced that it was investigating whether airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take.

The CMA says “The investigation will consider situations where airlines continued to operate flights despite people being unable lawfully to travel for non-essential purposes in the UK or abroad, for example during the second lockdown in England in November.”

The CMA is aware that, in some cases where flights were not cancelled, customers were not offered refunds, even though they could not lawfully travel. Instead, many were offered the option to rebook or to receive a voucher.

How the CMA will work with the CAA

The CMA says that it will be working closely with the UK Civil Aviation Authority as it progresses its investigation.  Its press release continues:

“While the Civil Aviation Authority (CAA) leads on consumer protection in the airline sector, the CMA has undertaken extensive action in connection with cancellations and refunds during the pandemic and is well placed to support the CAA on these issues. The CMA and the CAA continue to work closely and share the same enforcement powers to tackle breaches of consumer protection law.

The CMA will now be writing to a number of airlines requiring information to understand more about their approaches to refunds for consumers prevented from flying by lockdown.

Following a careful analysis of this evidence, the CMA then will decide whether to launch enforcement action against individual airlines.”

CMA forced to act on airlines failures

It is quite clear that the CMA has had to step in and walk where the CAA fails to tread.

Paul Smith, Group Director of Consumers and Markets at the CAA, said :

“It is right that consumer rights are upheld throughout this period and we welcome this investigation from the CMA, which follows our review into airline refunds earlier this year. The CMA has been leading on a broad range of issues arising during the coronavirus pandemic and we will continue to work closely with the CMA in support of this investigation.”

This defensive stance from the CAA makes the regulator appear ridiculous. As the CMA states, it has the same enforcement powers as the CAA. But the CAA has done nothing to enforce anything since their review earlier this year. Airlines continue to flout the law and the CAA appears to have done nothing to ensure that airlines have kept to their June commitments.

CAA compared with other regulators

No other regulatory body needs another organisation to step in to support their enforcement work. The other regulators, such as Ofgem (Energy), Ofcom (Telecoms) or the Office of Rail and Road (Transport) are able to enforce the law themselves.

Future for the CAA and ADR

So, why does the CAA need help? Because it is ineffective and unwilling to take on the airlines face to face. Has CMA simply had enough of watching this farce unfold?

Hopefully this action by the CMA will shame the CAA into taking further action by itself.

It is the job of the Civil Aviation Authority to investigate airlines but it has continued to take no action. The CAA has told me in the past:

“Should any airline fall short of the commitments they have made, we will not hesitate to take any further action where required.”

However, time and time again it has not done so. The CAA has shown itself to be not fit for purpose. Instead it is finding in favour of airlines and continuing to allow them to behave illegally. The CAA has shown itself to be not fit for purpose. The CAA needs to use its enforcement powers to revoke airline operating licenses where airlines do not comply with the law.

Aeroplane in sky with clouds AviationADR Dean Dunham, CEDR, CAA

Further information:

A new Chairman started at the CAA on 1 August 2020. But unfortunately the new chair, Sir Stephen Hillier, has been ineffective in tackling airlines that are continuing to break the law on consumer refunds.

CAA launches consultation and tells no-one… launched a consultation on Alternative Dispute Resolution (ADR) but didn’t tell any stakeholders, as Which? calls for a single Ombudsman in the sector.

Report cover Dean Dunham, CDRL, CTSI, CAA, OA,

Crowds of people with report covering OA, CTSI, CA, CDRL, Dean Dunham & others

More Ombudsman Omnishambles report which looked at approval and monitoring of ADR schemes and followed Ombudsman Omnishambles which looks at the failings of regulatory bodies, including the CAA.

How approval bodies are failing to properly approve and monitor Alternative Dispute Resolution -

Ryanair tops CAA refund complaints

Getting help for Coronavirus cancellation claims and shopping help and advice for getting refunds and redress

 

 

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ADR Ombudsman Latest News Press releases Property

How to build confidence in your home improvement project

Press release

Home improvement – DIY or get some help?

Home improvement has seen a huge rise throughout the pandemic. The increased amount of time people are spending at home, improving mental health and wanting their home to look nice for Christmas are all contributing factors to the 12.8 million people planning to do improvement work at home in the next few weeks.

In the run up to Christmas, 46% of Brits plan to undertake home improvements and 54% of them are planning to do the work themselves, with a whopping 61% admitting that they are not competent to do the job! That’s according to figures released today (16/11/20) from research undertaken by the financial services comparison company, GoCompare.

At the start of the second lockdown, Housing Minister, Robert Jenrick, confirmed that tradespeople would still be able enter customers’ homes to carry out work.  However, in yet another example of confusion around the COVID-19 restrictions, the research reveals that 13% of those wanting to work on their homes believed that they couldn’t have tradespeople in their home and 23% didn’t want them in their home at all.

With so many risks associated with undertaking works in the home, what else do you need to consider when using a tradesperson?

wooden joints

10 Top Tips for taking on tradespeople

1)  Get at least 3 firm quotes, not just rough estimates. Ignore any that are very different to other quotes.

2)  Ask friends and family for recommendations of companies who have already done work for them. If you don’t know anyone who can make a recommendation, ask traders for details of customers willing to show you their work. TrustMark can provide a list of recommended traders in your area, each of whom in turn is registered with a professional trade association. TrustMark say they are the Government Endorsed Quality Scheme and if something goes wrong with a trader – and their process doesn’t put it right – you will be able to use the Dispute Resolution Ombudsman for free. Check out reviews. Be careful and cynical of reviews on Facebook, particularly on the builder’s own page. Scams abound on many sites. So, check carefully before making a decision!

3)   All professional builders should willingly agree to a written contract which includes an agreed staged payment plan. In addition to the contract, continuous communication throughout the project is the best way to avoid problems arising. Many traders are signed up to reputable trade associations which help them to get their paperwork in order, but remember, what comes naturally to a lawyer doesn’t necessarily to a trader.

4)   Beware of websites that just offer to help you to find tradespeople. Often traders pay to be listed on these websites which generate leads for them, sometimes without the trader being vetted or required to abide by an Ombudsman or Alternative Dispute Resolution Service. If the website only helps you to spend your cash but doesn’t help you put things right if they go wrong, avoid it and look for one that will help you at both ends of the project.

5)   In addition to providing lots of advice and information on services, Which? operates the Which? Trusted Traders scheme. Unlike a lead generation site, this carries out checks and requires traders to abide by a comprehensive code of conduct, all of which is underpinned by the Dispute Resolution Ombudsman which can independently investigate complaints if things do go wrong.

6)   Be wary of any builder who can start straight away! Any builder worth their salt will be busy!

7)   Check to see if the builder has public liability or employer’s insurance which will give you peace of mind. Consider a building warranty that either they or you can take out to give you further peace of mind.

8)   Take photos before, during and after the work.

9)   For some larger projects, both parties can agree that an independent expert will value the work and payments can then be made at various stages during the project.

10) If you’re using a home improvement retailer to fit a bedroom, bathroom or kitchen, check that they are a member of the Furniture and Home Improvement Ombudsman before you buy. If they are registered, you’ll benefit from free and independent dispute resolution if things go wrong.

Top tips – what to do if things go wrong with tradespeople

Helen Dewdney, The Complaining Cow, a consumer champion, has these tips:

1)  Try to resolve the matter in person or over the ‘phone before formally writing if you have a complaint.

2)  Under the Consumer Rights Act 2015 you are entitled to goods of satisfactory quality, that last a reasonable length of time and services (such as fitting) to be carried out with reasonable skill and care.

3)  Give the trader an opportunity to remedy the work. If they refuse to do this or they fail to do it satisfactorily, then you can take the matter further. Ensure that you state that you retain your legal rights under the Consumer Rights Act 2015, so that you are still able to claim if necessary afterwards when you write to complain.

4)  If the trader does not respond or does not remedy the faulty work, proceed with getting an independent report and 3 quotes.   Get the work done and write to the trader requesting this amount, attaching the paperwork. You could attach a quote before the work is done to give the trader one last chance, if you wish.

5)  The Defective Premises Act 1972 relates to work undertaken by builders, developers, surveyors and architects. “Defective”, in legal terms, means work causing the property to be unfit for habitation as a result of design, workmanship or materials. Improvement, small jobs and refurbishments are not covered by this Act, so use the Consumer Rights Act 2015 instead.

6)  If the trader is a member of a trade association, you can contact it and see if you are able to use their dispute resolution scheme.

Kevin Grix, Chief Executive and Chief Ombudsman at the Dispute Resolution Ombudsman, says:

“Sometimes even the most straightforward home improvement projects go wrong – and when they do the consequences for everyone involved can be dire. The temporary loss of amenities such as plumbing and electricity caused by a problem are often just the tip of the iceberg. Often when jobs go badly, traders and their customers find themselves in a stand-off, with work left incomplete and arguments over payments escalating.”

There are few more emotive disputes than those that involve the home. Dewdney says that good builders and tradespeople are not just adept with their tools – they also have processes in place to look after their customers. “For extra peace of mind, select those who demonstrate a commitment to standards and putting things right if they go wrong. Look for the ones who are registered with an endorsement website and with an Ombudsman.”

What to include in a contract with the builder etc

A contract should include the following:

  • Total price inclusive/exclusive of VAT
  • Timescales
  • Start and end dates to include delays and disruptions
  • Payment stages
  • Specifications of materials to be used
  • Insurance and responsibilities for loss/damage
  • Liabilities
  • How unexpected work will be dealt with
  • Health and Safety
  • Termination/cancellation rights
  • Sub-contracting
  • Dispute resolution

For more information see How to ensure a stress-free building project which includes a case study and court action which set a precedent you need to know if you are considering legal action!

Cover of How to Complain updated 2019 large cow logo

 

For more help, advice, tips, information and templates buy  How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

 

 

 

man in hard hat

There are some problems in the ADR/Ombudsman sector

There are many issues regarding ADR and Ombudsmen providers. These are mainly to do with the oversight by their approval bodies and are highlighted in my articles Government and regulators continue to fail on resolving consumer disputes and Landing in Court with Ryanair. These articles include links to the reports Ombudsman Omnishambles and More Ombudsman Omnishambles.

This is why we recommend an Ombudsman. (See More Ombudsman Omnishambles for details on how Ombudsman standards are higher than other ADR providers).

Alternative Dispute Resolution – approval and oversight in the loosest sense of the words…