Monday, 27 October 2014

The European Directive on ADR & the motor trade

The government will implement the European Directive on Consumer Alternative Dispute Resolution into UK law

The Alternative Dispute Resolution (‘ADR’) is a quicker and cheaper alternative to Court for the resolution of disputes and complaints.

The European Directive and UK Law will make it mandatory for all business to make ADR available to consumers whose complaints relating to any and all their goods and services remain unresolved.

The Directive and the UK legislation will apply to all businesses that sell goods and/or services to consumers, including:

• New & Used Cars

• Vehicle servicing & mechanical repairs

• Accident & Cosmetic Repairs

• Fast-Fit

• Parts & accessories

• Warranties, Finance & Insurance

Why?

Inadequacies in current complaints procedures, or the lack of them, are cited as contributing to the high levels of ‘consumer detriment’ (estimated to be £3.5- 4bn) and complaints directed to Citizens Advice Bureau and the Court Service.

The Directive and the UK legislation is intended to improve:

• systems of redress for all consumer contractual disputes

• overall quality in the standards of consumer goods and services

• consumer confidence and trust

How?

The fine details are yet to be confirmed by the government and have been the subject of a consultation period.

However the Directive dictates that all consumers, whose dispute remains unresolved by the business, are given the opportunity to have it resolved by Alternative Dispute Resolution.

Author:

Philip Harmer is a senior partner at Stormcatcher Partnership, Head of Alternate Dispute Resolution and SCAS. He is a barrister at law, International Commercial Arbitrator, commentator, speaker and author on Corporate Culture and Corporate Governance.