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Ombudsman chaos continues – Even on Conflict Resolution Day

Today (20th October)  is Conflict Resolution Day. Created in 2005 by the Association for Conflict Resolution1 it is now an annual celebration. It is aimed at increasing awareness of the various peaceful, non-violent methods of dispute resolution (ADR) available to traders and consumers.

Lots of people text Ombudsman omnishambles
How are authorities failing in their approval of ombudsmen and ADR providers? Many ways

Consumer understanding of ADR

Helen Dewdney, The Complaining Cow blogger and author of How to Complain: The Essential Guide to Getting Refunds, Redress and Results! recommends ADR to consumers. Advocating it as a cost effective (usually free to the consumer) and speedier process than going to court.

She expresses concern over the current landscape though saying that many people don’t know about ADR. “Frequently I hear from people who are at the end of their tether with traders and although may be aware of an ombudsman for regulated sectors such as Finance, Energy and Telecoms they are less aware of other sectors. These include for example, property, vehicles and furniture.”

Ombudsman example

For instance, The Furniture Ombudsman now incorporating The Dispute Resolution Ombudsman was set up by the Office of Fair Trading. It has 25 years of experience in the retail sector dealing with complaints around furniture, home improvement and general retail goods. The independent, thorough investigation process frequently involving expert reports, ensures a fair resolution for both parties, that consumers can trust.

Kevin Grix, CEO of The Furniture Ombudsman and The Dispute Resolution Ombudsman advises consumers to become more aware of ombudsman schemes. Subsequently this will protect them more from the outset. “Before you shop, make sure your trader of choice offers ADR and if you find yourself in a dispute, you can ensure you contact the right ADR scheme for the trader you have a contract with.“

Ombudsman Adjudication

Ombudsmen use adjudication, which is usually free to the consumer, binding on the trader but not on the consumer should s/he not agree and want to take the matter to court.

However, lesser known but an alternative to Ombudsmen is mediation which puts the parties within a dispute in control of the outcome. It takes into account both parties’ wishes and needs not just the legal entitlement.

Jo Holland, a mediator consultant with 10 years’ experience finds that people often want to be heard, say their piece or just hear an apology. She says, “Consumers and businesses need choice and access to affordable and speedy dispute resolution. Mediation provides imaginative, practical and financial outcomes without the need to go to Court”

Chaos in ADR

However, an investigative report Ombudsman Omnishambles: Serious unresolved issues affecting the operation of the ombudsman ADR system in the UK written by Dewdney and Marcus Williamson identified a number of issues regarding the certification and ongoing monitoring of ADR providers.

The organisations responsible for appointing and overseeing the ombudsmen appear to be taking a “light touch” approach to the new privatised ombudsman sector.

Ombudsman Omnishambles and More Ombudsman Omnishambles

Among the findings of the report:

* The Chartered Trading Standards Institute (CTSI) does not carry out basic “fit and proper” person tests before approving ombudsmen, their staff and contractors.

* One ombudsman is breaching Ombudsman Association rules on independence, openness & transparency. In particular, the company is running an “accredited retailer” programme in parallel with having the ombudsman role confusing consumers.

The use of ADR has the potential to offer consumers effective means of redress and the expansion into other sectors is welcomed but key issues must be resolved before bringing the whole sector into disrepute and lose confidence of consumers.

Westminster Business forum seminar

“Next steps for consumer protection in the UK – dispute processes, enforcement and the consumer markets green paper.” This was held on 15/11/18. Helen Dewdney presented “Alternative Dispute Resolution – approval and oversight in the loosest possible sense of the words…”

How approval bodies are failing to properly approve and monitor Alternative Dispute Resolution -