Alternative Dispute Resolution
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 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. There are different forms of ADR:
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 and free to the consumer. Binding on the trader but not on you should you not agree and want to take the matter to court. For details of ombudsmen see the relevant sector chapter.
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.
There’s a guest post from the Financial Ombudsman.
The ADR appears to have let the flood gates open and the potential for an omnishambles of ombudsmen is upon us.
Film recorded for Citizen’s Advice: