Many Irish people who have been mistreated, ripped off or otherwise let down by businesses are being denied access to any form of meaningful legal redress because supposedly low-cost avenues are blocked by outdated rules, the consumer watchdog has warned.
In a new report, the Competition and Consumer Protection Commission (CCPC) expresses concern that the small claims court hears only cases involving sums of €2,000 or less, and describes this ceiling as “out of step with the most basic and unavoidable expenses” with which many consumers have to contend.
The idea behind the small claims court is to allow disputes be settled outside of the expensive, complex and sometimes frightening legal system.
The people who take actions and defend themselves typically appear before District Court judges without legal representation and with only a nominal fee paid by claimants.
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In 2022 the court dealt with 2,159 claims, a slight increase on the previous year but down 39 per cent on the 3,557 incoming claims in 2020 and a 53 per cent decrease on the 4,627 pre-Covid in 2019.
Of the 2022 claims, 462 were dealt with by the court, with the vast majority – some 1,594 – settled out of court, including where applications fell outside the scope of the rules for small claims.
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According to the latest report from the CCPC, 4,900 consumers were referred to the court in the first six months of the year, up almost 1,000 on the same period in 2023.
Topping the list of sectors most referred to the court were home building and improvements, with a total of 624 consumers advised to seek redress through the small claims procedure. A further 588 people who had issues with vehicles and transport were also referred to the court.
However the CCPC expressed concern that many people who could benefit from the intervention of the low-cost legal framework were being cut adrift as a result of rules which do not reflect the realities of life in Ireland in 2024.
“From January to June this year, we referred almost 5,000 consumers to the small claims court, but many of our callers, like car buyers and those contacting us about issues with home improvements, are automatically excluded from this option due to the low claim limit,” said the CCPC’s communications director, Gráinne Griffin.
She expressed concern that the court “is only open to claims for €2,000 or less” and said it was “out of step with many of the most basic and unavoidable expenses faced by consumers today”.
Ms Griffin called for changes to be made to the rules and said the CCPC would continue to advocate for the limit to be increased.
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