Alternative Dispute Resolution (ADR)
From the 9th July 2015 The EU ADR Directive was supposed to come into force. It was delayed until the 1st October. This compels the government to ensure that Alternative Dispute Resolution (ADR) schemes are in place.
ADR is a process that enables disputes between a consumer and a business to be settled via an independent mechanism outside the court system and can provide a quicker resolution.
Complaining to an Ombudsman or other ADR provider
If the company you are complaining to is a member of an ADR scheme, you can take your complaint to the relevant provider. Some schemes are mandatory for certain sectors such as telecoms (Communication Ombudsman or CISAS), energy (Energy Ombudsman) and finance (Financial Ombudsman Service).
Non-statutory schemes (so traders do not have to be members) include The Motor Ombudsman, whose members include vehicle manufacturers, warranty product providers, franchised dealers, independent garages, networks and bodyshops. The Dispute Resolution Ombudsman along with the Furniture & Home Improvement Ombudsman and Rail Ombudsman provide ADR for the rail, retail and the furniture and home improvement sectors. All providers are listed on the Chartered Trading Standards Institute website.
Take your issue to the ADR provider 8 weeks after you first complained or request a deadlock letter from the company. The company is bound by the decision, you are not.
If the company is not an ADR scheme member or you don’t like the decision, then the Small Claims Court is an option. To show the company you mean business, send a “letter/email before action” outlining that you intend to take them to court. List the costs, including the court fees. Go to the Small Claims Court website for England and Wales, Scotland and Northern Ireland fill out everything, right up to payment, take a screenshot and attach it to a email to the CEO.
Different ADR methods for making decision on complaint cases
Arbitration – an impartial and independent third party will decide how to resolve your dispute. In most cases, the arbitrator’s decision is binding and cannot be challenged in court. Costs vary and sometimes arbitration is free as with IDRS and ACAS services.
Adjudication – by ombudsmen (or ADR provider) and free to the consumer. Binding on the trader (they lose membership if don’t abide by the rules but this rare) but not on you should you not agree and want to take the matter to court.
Mediation/conciliation – remains confidential and cannot be used in a later court hearing. The cost varies: in some instances it’s free; in others, it can get expensive. By the very nature of the word “mediation” someone will work with you and the other party to reach a decision. If agreement is made and signed this is legally binding. You would only be to go to court to enforce it if necessary.
Negotiation – which is used most commonly in employment situations. You can choose to have a union rep or someone else present while you negotiate.
Generally, arbitration is binding on both parties to the dispute; mediation/conciliation and negotiation are non-binding; and adjudication and ombudsmen schemes do not bind the complainant, but will be binding on the other side.
Your Money article and video
How Alternative Dispute Resolution can help with your complaint
07/10/20 International Ombuds day – what’s it all about
Guest posts by Ombudsmen
Why use the Financial Ombudsman?
Furniture and dispute resolution guest post.
Energy ombudsman shows how to keep heat on your supplier.
Myths about Ombudsmen
It is common to come across people who think that Ombudsmen see in favour of companies for example. However, this is just one myth. This post 5 Ombudsman myths busted explains more.
However there are some issues and these are in the oversight and approval and monitoring of ADR providers.
The ADR appears to have let the flood gates open and the potential for an omnishambles of ombudsmen is upon us.
Problems in the ADR/Ombudsman sector
The links below include articles from Which?, Financial Times and The Independent that describe a number of problems which are not the fault of providers and provide warnings about one provider, Consumer Dispute Resolution Limited run by Dean Dunham which runs RetailADR, UtitlitiesADR and AviationADR.
20/10/16 Ombudsman chaos continues – Even on Conflict Resolution Day.
06/06/17 The Retail Ombudsman is no more as title is lost.
21/07/17 Statement on The Retail Ombudsman by the Ombudsman Association
28/02/18 Government & regulators continue to fail consumers
28/02/18 More Ombudsman Omnishambles The UK ADR Landcsape 20 months on the report.
23/08/18 Landing in court with Ryanair the latest, Which? and The Independent, reports included.
07/10/20 CAA launches consultation and tells no-one…
22/10/20 Ryanair tops the CAA refund complaints figures
16/12/21 CMA steps in where the CAA fears to tread
18/03/21 Civil Aviation Authority consults on dispute resolution
Radio 4 appearance discussing ombudsmen:
Ombudsman Omnishambles discussed on You and Yours Radio 4
How approval bodies are failing to properly approve and monitor Alternative Dispute Resolution -
15 November 2018. Presentation on ADR at the Westminster Business Forum. I outlined all the issues with monitoring and oversight of the sector. It covered the risks for both businesses and consumers if unsuitable providers are allowed to continue. I regularly get asked to speak on consumer rights, complaints, customer service and ADR issues. More information about speaking engagements and events can be found on the speaking page.
Help with complaining effectively
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2 Comments. Leave new
Hello Ms Dewney,
Could you please advise on this extremely urgent and stressful situation?
I am being harassed and accused of being ‘vexatious’ by Liverpool City Council, simply because I have asked them to direct their Medical Referee to allow my brother’s cremation to go ahead.
I’m at my wit’s end trying to get public servants to do the job they’re paid to do.
Can you help?…
TO LIVERPOOL CITY COUNCIL
*** Liverpool man left on undertaker’s slab for THREE YEARS, by Liverpool City Council ***
Kind regards
Mike
See Tips write to the CEO state you will take the matter to the Local Government Ombudsman.