CARAVAN OWNERS ARE HAPPIER CAMPERS WITH FAIRER DEAL

3 Nov 2004 11:15 AM

Static holiday caravan owners at a number of sites in Hampshire, Sussex and Suffolk have fairer contracts following OFT action.

The sites operated by Dr Peter Leslie Pratt and Pratt Developments Unlimited - trading as Island Meadow Parks - and Stanley Holiday Centre Limited were using terms and conditions that the OFT considered to be unfair. Unfair terms included those that:

* permitted the relocation of a caravan to another pitch: the term has been changed to ensure the new pitch is comparable to the old one and to provide for a partial refund where the caravan owner terminates the agreement as a result of an unsuitable move

* provided that fees paid in advance were not refundable: this term has been revised to allow for partial refunds where appropriate

* restricted the sale of caravans by owners on site: the term has been deleted and the park rules now provide that 'for sale' signs can be displayed on park notice boards

* excluded liability for the quality, condition or fitness for purpose of caravans sold by the park owner: this term has been amended so that liability is no longer excluded

* allowed the park owner to exclude liability for its own negligence in moving caravans: the term has been amended so that liability is no longer excluded

* allowed the park owner to retain excessive sums as compensation when the consumer cancelled the sale contract: the term has been deleted.

Welcoming the revisions, John Vickers, OFT Chairman, said:

'The OFT has secured significant benefits for caravan owners at these sites. Unfair contract terms have no place in caravan contracts.'

Before signing up for caravan contracts, the OFT advises that owners check:
* how long a licence is for
* what services are provided and at what cost (eg electricity and gas)
* whether insurance must be purchased through the site operator * restrictions on disposal of caravan
* dispute handling procedures.

NOTES
1. Dr Pratt, Pratt Developments Unlimited trading as Island Meadow Parks and Stanley Holiday Centre Limited are all run by Dr Peter Leslie Pratt and operate the following caravan parks:
Ashley Heath Holiday Home Park, Ringwood, Hampshire
Holdens Holiday Home Park, Bracklesham, West Sussex
Onslow Holiday Home Park, Ferring By Sea, Worthing
Poppyfields Holiday Home Park, Santon Downham, Brandon, Suffolk Rushey Hill Holiday Home Park, Peacehaven, East Sussex
Walnut Tree Holiday Home Park, West Wittering, Chichester, West Sussex
Denmead Mobile Home Park, Hampshire
Oaktree Mobile Home Park, Nr Southampton, Hampshire
Crookham Park, Crookham Common, West Berkshire
Stanley Holiday Home Park, New Milton, Hampshire

2. Dr Pratt and his companies originally signed undertakings in November 2002, not to use or rely on terms that OFT considered to be unfair However the undertakings were breached as the wording of the 2002 and 2003 contracts was reissued for the 2004 season incorporating only some of the changes agreed with the OFT. OFT regarded this breach as a serious matter and requested that Dr Pratt revise all of the unfair terms. The OFT understands that new contracts for the 2005 season reflect the revisions discussed thereby removing the need to instigate court action at this stage. Any further use of, enforcement of or reliance on the unfair terms which were revised following OFT action or indeed any terms with the same or similar effect is likely to lead to court action.

3. The Unfair Terms in Consumer Contracts Regulations (UTCCRs) came into force in 1999 (superseding the UTCCRs 1994) and apply to standard contract terms used with consumers in contracts made after 1 July 1995. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders.

The OFT, together with certain other bodies, can take legal action to prevent the use of potentially unfair terms. A term is unfair if it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. Standard terms may be drafted to protect commercial needs but must also take account of the interests and rights of consumers by going no further than is necessary to protect those legitimate commercial interests. An unfair term in a contract covered by the UTCCRs is not binding on the consumer. Ultimately, only a court can decide whether a term is unfair.

4. The OFT is producing guidance for the holiday caravan sector which has been published for consultation. See PN 177/04. More general guidance on the Unfair Terms in Consumer Contract Regulations is available on the OFT website.

http://www.oft.gov.uk

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