Dealing with disputes
Nobody expects to have a serious problem or dispute with a supplier or service provider - but it's important to know what might happen if the worst comes to the worst. Our guide to Alternative Dispute Resolution takes you through the options if you have a dispute but you don't want to go to court.
- Alternative Dispute Resolution (ADR)
- How to make a complaint
- Advantages of ADR
- Ombudsman schemes
- Regulators
- Trade associations
- Independent mediation
- Small Claims Track
- Where to go for help
Alternative Dispute Resolution (ADR)
If you wish to resolve a serious dispute without going to court, you may solve your problem using an Alternative Dispute Resolution (ADR) scheme. ADR is a term used for methods of sorting out complaints and legal problems without going to court.
However, ADR should always be your last resort. If you have a problem with goods or services, you should try to negotiate with the trader or supplier first, keeping a record of all conversations and correspondence.
If your problem cannot be solved in the normal way, there are four main types of non-court procedure to consider:
- Ombudsman schemes
- Regulators
- Trade associations
- Independent mediation
There are different time limits and other requirements for each type of procedure. The type of ADR you choose depends on what your problem is and how you want it dealt with.
One advantage of ADR is that you don't usually have to face your opponent in person. Instead, you rely on documents. Whichever method of ADR you choose, it is essential that you keep accurate written records and photographs of all problems, complaints and correspondence. You must also act quickly.
Other advantages of ADR are:
- It can lead to compensation (Other satisfactory outcomes may include a formal apology, a change in procedures, etc.)
- It may cost you less than a court procedure
- It is confidential
- It is less formal than going to court
Things to think about before choosing ADR:
- How do the costs of the procedure compare with the costs of going to court?
- Would you prefer to put your point across in person or to rely on documents only?
- If the arbitrator's decision is legally binding, you will not be able to take your problem to court afterwards.
- Will certain time limits apply to your chosen method? Also, the time spent in one procedure may affect your ability to take your case elsewhere if you need to.
Many services have an Ombudsman scheme you can use. Ombudsmen act as independent 'referees' who look at complaints about public and private organisations. You can find out if the company you have a problem with is a member of an ombudsman scheme by asking the company, looking at one of its company brochures (which should state this) or by contacting the British and Irish Ombudsman Association.
How does it work?
First, you will need to exhaust the supplier's internal complaints procedure. Once you have done this, you must give written details of your complaint and copies of all your evidence to the Ombudsman.
The Ombudsman will make a recommendation which is usually accepted by the supplier. However, the recommendation is not legally binding, so you can still go to court if you are not happy with the decision.
Ombudsman services are free.
All utility companies have regulators to oversee how they conduct their business. Regulators protect consumers from unfair pricing by promoting effective competition. They will regulate where necessary and will also ensure that special help is targeted at vulnerable customers.
How does it work?
Most regulators have a watchdog that consumers can turn to for free information and advice. The watchdog often can investigate and try to help resolve complaints.
Regulator services are free. Full details of how you can complain can often be be found on the back of your utility bill,. or by contacting Consumer Direct.
If the trader or service provider you have a problem with is a member of a trade association, it is bound by the association's code of conduct. The exact help you can expect depends on the trade association concerned, but it may include mediation or arbitration services.
If a trader administers a code of practice which has been approved by The Office of Fair Trading, you can be assured that there will be a mediation or conciliation service available and access to a speedy and low cost independent redress mechanism, such as an ombudsman scheme or arbitration service.
How does it work?
You may have to pay to use the arbitration service, but mediation is usually free.
If you use an arbitration service, any decision is likely to be legally binding which would prevent you taking your case to court (except to enforce any award of compensation).
Mediation gives you and the other person or company the chance to find a solution to your problem with the help of an independent third party: a mediator.
The mediator's job is to help both parties reach a solution between themselves. It is not the mediator's job to make a decision - you and your opponent decide what will happen and the terms of any agreement you make.
The mediator can act as a go-between if you don't want to meet the other party.
How does it work?
Mediation is a voluntary process, so you cannot force the person or company to take part.
If an agreement is reached, the next step is to draft the terms of the settlement. The settlement will be legally binding unless you state otherwise, and this will stop you from taking court action (except to enforce any award of compensation).
Mediation can be expensive unless you qualify for help from the Community Legal Service (in England and Wales only).
You can start a civil legal action in the county court, or in the High Court depending on the circumstances of the case. If the claim is for £15,000 (GBP) or less, it must be started in the county court. If the case is a simple one or under £5,000 (GBP), the county court will decide to use the small claims procedure and will allocate the case to the Small Claims Track.
In Scotland, most small claims are started in the Sheriff Court. A few are started in Summary Cause (still Sheriff Court) but are referred to the small claims procedure by the Sheriff if he thinks they are best dealt with there. If the case is a simple one or under £3,000, the Sheriff Court will decide to use the small claims procedure and will allocate the case to the Small Claims Track.
The Small Claims Track is an arbitration process rather than a full court hearing. The difference is that between some ADRs the process is not binding, whilst at the Small Claims Track, the decision is backed by the courts allowing enforcement. The Citizens Advice Bureau provides more information on the Small Claims Track Process.
If you have any queries, or if you need more advice, please call Consumer Direct on 08454 04 05 06.
The Citizens Advice Bureau also provideprovides a fact sheets that contains more details on these schemes.
