Alternative Dispute Resolution

ADR: Changes ahead

Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC Alternative Dispute Resolution (ADR), through an ombudsman scheme or other independent complaint handling mechanism, is the process of settling disputes outside of the courts. Whilst defined as alternative, ADR is rapidly becoming the primary route for consumers to have matters of dispute resolved. In many UK business sectors, ADR schemes have been established for many years. TPO itself is approaching its 25th birthday and, along with other established schemes such as the Financial Ombudsman, is widely accepted as a quicker, efficient and sometimes more  knowledgeable route to ensuring businesses and consumers receive fair and credible outcomes. However, there are many sectors in the UK where Ombudsman or alternative schemes are not available, a few of which have been identified as carrying a potentially significant consumer detriment. FILLING THE GAPS It is understood that where consumer confidence is low, businesses suffer, thus following the recent recession, restoring confidence became a priority for governments across Europe. Accordingly, the EU set about considering how it could assist in restoring consumer confidence and get…