consumer adr in the uk gregory hunt, head of business relationships the chartered institute of...

Consumer ADR in the UK

Gregory Hunt, Head of Business Relationships

The Chartered Institute of Arbitrators

Independence Integrity Impartiality

Agenda

• Who are we and what are our principles?• Key Advantages of Consumer ADR (in the UK at

least!)• Key Features of Consumer ADR the CIArb way• Statistics• The Future


Who are we?

• Formed in 1915 as home for construction arbitrators

• Now the world’s most renowned ADR membership body offering global training and education programmes

• 11,000 members in over 100 countries, including 243 members of our European Branch (20 in Spain)

• Also offer cost-effective, quick access to justice via more than 110 bespoke and ad-hoc ADR services

• ADR services operate to core principles of independence, integrity and impartiality


Who are we?• For B2C disputes we provide cost-effective, quick redress for a wide range of consumer markets, including

• building and property

• financial services

• funerals

• travel (inc. Timeshare)

• communications

• court and National Mediation Helpline

• ECC Net


Who are we?• We also represent the UK on ISO 10003 working group (external consumer redress) and at consumer workshops and seminars in the UK, Europe, USA and Africa

• We are members of the Consumer Education Alliance, Scottish Consumer Forum and Corporate Associate Members of BIOA

• We work closely with UK consumer groups, and we have worked hard to change our services to meet their requirements (e.g. free to the consumer, non-binding and so on) – giving consumers and businesses real choice


Key Advantages of Consumer ADR• Provides access to fair, independent and cost-effective resolution of disputes

• Increases range of options for dispute resolution – including early settlement

• Ideal for cross-border disputes

• Preserves market reputation (and maintains relationships)

• Increases consumer confidence in dealing with a particular company


Most popular Consumer ADR Services• Arbitration Scheme for the Travel Industry – consumers worldwide in dispute with members of the Association of British Travel Agents (Also PI mediation – “Dolphin case”) – 7 weeks

• CISAS – Communications & Internet Services Adjudication Scheme – approved by UK Communications Regulator – OFCOM – for disputes with the likes of Orange, T-Mobile, AOL, Yahoo, Tiscali – 6 weeks

• Funeral Arbitration Scheme – disputes between bereaved and funeral directors – conciliation 4 weeks


Key Features of Consumer ADR

• Dispute must involve a company being regulated or signing up for ADR – mainly achieved under Codes

• Time limits for applications may apply

• Applications and case progress can be handled by post, online or a combination – don’t force ODR!

• Claims are dealt with by professionally qualified neutrals, completely independent of the trade body or company



• In most cases, claims are dealt with by documents-only (inc. video and photographic evidence) so no need to give evidence in person

• Neutral (where relevant) will consider the law and the Code

• Arbitrator or adjudicator is tasked to make an award / decision which is fair and reasonable in the circumstances



• The award / decision is issued in writing, in clear English, and gives a summary of facts, the conclusions and reasons for reaching them



• Consumer Arbitration

• the consideration of documents by a qualified third party, the arbitrator, who publishes a legally binding award

• all arbitrators are Chartered, qualified to degree level in the laws of tort, evidence and contract, the law and procedure of arbitration and have successfully passed an award writing examination


Key Features of Consumer ADR• Consumer Mediation / Conciliation

• the assistance of a qualified third party, the mediator, to help the parties to resolve their own dispute, via documents and telephone conversations

• all mediators are accredited in excess of the requirements of the Civil Mediation Council

• conciliators offer a similar service but can propose a solution to the parties. Conciliators are also accredited mediators



• Consumer Adjudication

• the consideration of documents (and telephone evidence) by a qualified third party, the adjudicator, who publishes a reasoned decision which is binding if the consumer accepts it

• all arbitrators are Chartered, qualified to degree level in the laws of tort, evidence and contract, the law and procedure of arbitration and have successfully passed an award writing examination



• Cost

• to the consumer – either free or subject to a low registration fee of 75 to 150 Euros

• the consumer has their fee returned if they are successful in being awarded more than they had previously been offered

• to the company – 370 to 1,110 Euros

• worth noting that English & Welsh small claims limit is £5,000 (7,400 Euros) but some schemes can claim up to £25,000 (37,000 Euros)


Statistics

• Over 28,000 consumer disputes resolved since 1993

• Between 1993 and 2001 almost all were arbitration

• 12,000 disputes since 2001

• Since 2001

• 600 mediations

• 100 conciliations

• 1,200 adjudications


Statistics

Pre 2001 all cases were arbitration

Share of Consumer ADR 2001-2006

84%

5%

10% 1%

Arbitration

Mediation

Adjudication

Conciliation


Statistics

2001-2006 Average is 84% arbitration

Share of Consumer ADR 2005-2006

67%6%

25%

2%

Arbitration

Mediation

Adjudication

Conciliation

By 2010

Expect arbitration to account for less than 20% of all consumer cases dealt

with by CIArb


The Future 2007-2011

• Trading Standards (similar to Chamber of Commerce in Europe)

• Landlord / tenant

• Court and National Mediation Helpline

• Other housing related

• Personal Injury

• Communications

The final message

After more than 90 years, and 30 in consumer ADR –

we’ve not even started

consumer adr in the uk gregory hunt, head of business relationships the chartered institute of...

Documents

adr services adr services

key advantages of consumer

consumer workshops

consumer confidence

uk consumer groups

consumer education alliance

future slide

scottish consumer forum