CARAVAN SITE OPERATOR GIVES CONSUMERS FAIRER CONTRACTS

19 Jun 2003 11:15 AM

Holiday caravan owners warned to check contracts

The OFT has taken action against unfair terms in holiday caravan contracts, and urges buyers to check the details of their pitch licence agreements before signing a contract.

The advice follows OFT action to change the unfair contracts of Peter Leslie Pratt and Pratt Developments Unlimited, who run static holiday caravan parks in the Hampshire, Sussex and Suffolk areas (See Note 1).

The site licence agreement, park rules, and conditions of sale contained a number of unfair terms. These included terms that:

- allowed the withholding of the licence fees paid in advance, if the application did not proceed. Term changed to oblige the company to provide a full or partial refund when either the company or the owner terminates the agreement

- appeared to impose penalty charges for storage of caravans. Undertakings given to not use, or recommend for use, terms and conditions highlighted by the OFT as unfair or similar terms, and to not enforce such terms in existing contracts

- allowed the relocation of a caravan to another site without any liability to the owner. Term changed to limit the circumstances in which the company can move the caravan, provide a right to terminate if the consumer is unhappy with the relocation and oblige the trader to pay a proportion of the site licence fee paid if the owner cancels the agreement as a result the change

- allowed termination of the contract for a minor breach or non- observance of site licence conditions. Term changed to allow company to only terminate contract for serious breaches or non-observance of conditions

- bound owners to hidden terms. Term changed to oblige the company to provide all terms at the outset

- restricted the sale of caravans on the park by the caravan owner. Undertakings given as above

- attempted to enforce a transaction linked to a credit agreement where the latter falls through. Undertakings given as above

- excluded liability for the quality or condition or fitness for purpose of caravans sold. Term changed so that liability is no longer excluded

- allowed the seller to impose increases in price of no more than 20% and for increases of more than 20% only allowed cancellation of the contract if cancellation was made within 10 days of notice of change being given while allowing the seller to cancel the contract if price decreased. Term changed to provide notice of any variation in price and allow consumer one month in which to cancel the contract

- allowed the supplier to retain excessive sums by way of compensation when the consumer cancels the contract. Undertakings given as above.

The licence agreements at Dr Pratt's sites are only for one year. While this in itself is not an unfair contract term, the OFT notes that the code of practice issued by the National Caravan Council and the British Holiday & Home Parks Association provides that site licence agreements for new caravans must not be for less than ten years from the date of first purchase.

John Vickers, OFT Chairman, said:

'The OFT has secured a better deal for caravan owners at these sites. Caravan park operators must not impose unfair terms on caravan owners and we urge owners who experience problems to contact us and trading standards.'

The OFT advises potential buyers to check the following before entering into a contract:

- how long a licence is for; how long the site owner has agreed they can keep their caravan on the site

- what services are provided, the variation of such services and the cost of services such as gas or electricity

- charges and how fees will be increased

- insurance costs, whether insurance is required to be purchased through the park owner

- restrictions on the sale or disposal of the caravan

- termination of contract and notice periods, particularly relating to the sale or disposal of the caravan

- how disputes will be handled.

NOTES

1. Dr Pratt and Pratt Developments Unlimited operate the following caravan parks:

Ashley Heath Holiday Home Park, Horton Road, Ringwood, Hampshire, BH24 2EL.

Holdens Holiday Home Park, Bracklesham Lane, Bracklesham, West Sussex, PO20 8JG.

Onslow Holiday Home Park, Onslow Drive, Ferring By Sea, Worthing, West Sussex BN12 5RX.

Poppyfields Holiday Home Park, Thetford Road, Santon Downham, Brandon, Suffolk, IP27 0UT.

Rushey Hill Holiday Home Park, The Highway, Peacehaven, East Sussex, BN10 8XH.

Walnut Tree Holiday Home Park, West Wittering, Chichester, West Sussex, P020 8NB.

Denmead Mobile Home Park, Denmead, Hampshire.

Oaktree Mobile Home Park, Allington Lane, West End, Nr Southampton, Hampshire.

2. The Unfair Terms in Consumer Contracts Regulations 1999 came into force on 1 October 1999. They replaced the Unfair Terms in Consumer Contracts Regulations 1994. The Regulations implement an EC Directive (EC Directive 93/13) in the UK. They apply to standard contract terms used with consumers in contracts made after 1 July 1995. The Regulations say that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair. They give the Director General of Fair Trading and the Qualifying Bodies listed in Schedule 1 to the Regulations, the powers to stop the use of unfair standard terms by businesses and to prevent anyone recommending such terms, if necessary by obtaining a court injunction.

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