Luxembourg Consumer Protection AssociationRates of retirement homes should be capped, says ULC President

RTL Today
On Wednesday morning, Nico Hoffmann, the president of the the Luxembourg Consumer Protection Association (ULC), was a guest on RTL Radio.

According to ULC President Nico Hoffmann, the government “could have done more” in terms of capping energy prices to fight high inflation. The ULC has previously spoken out in favour of lowering excise duties, taxes and VAT, and continues to do so. But the government’s first priority should be to “finally adjust the tax table for inflation,” Hoffmann stated.

‘Lack of transparency’ in the pricing policy of retirement homes

The ULC is concerned about the impact of high inflation on the rates of retirement and nursing homes. The ULC President argued that once prices crossed a certain threshold, the state should intervene “and cap prices, for instance”. Hoffmann also criticised a “lack of transparency” in the pricing policy of numerous homes. Minister for Family Affairs Corinne Cahen promised the introduction of a new law in this context, but not much progress has been made since then, Hoffmann regretted.

The ULC also continues to criticise the closure of post offices and bank branches across Luxembourg. The elderly, in particular, “need assistance from a variety of operators,” Hoffmann pointed out. The ULC President went on to say that he does not understand why elderly or vulnerable people are not exempt from bank fees for their everyday transactions, especially seeing as these fees have increased by about 15% on average in the last year. Hoffmann argued that this exemption is actually provided for in a European directive which has yet to be implemented in Luxembourg.

‘The goal is always to find a middle ground’

The housing sector is the source of the majority of the disputes handled by the ULC. In 2021, the ULC opened 4,700 new dispute files, with more than half of them involving construction. The major points of contention are rental leases, co-ownership issues, and agency contracts. The rest of the disputes concern problems with administrations, car purchases, and financial services.

Last year, the ULC also made about 46,000 telephone calls and provided more than 1,800 consultations. According to Hoffmann, the goal is to always find a middle ground. In less than 1% of cases, the Association feels that it is forced to take legal action. As far as class action lawsuits are concerned, the ULC is still waiting for the opinion of the Council of State and hopes that the law will be passed by autumn 2022 at the latest.

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