ADR: Alternative Dispute Resolution

If you have failed to come to a compromise with a trader or a credit card supplier, then you may consider entering into a ADR scheme before issuing court litigation. An ADR, or Alternative Dispute Resolution for it's full non-acronym title, should not be considered lightly. You should have exhausted all negotiations with a trader and credit supplier.

All written and verbal contact should have been recorded and kept before beginning a ADR process. An ADR is usually classified as a form of mediation. ADR schemes do differ, and can include informal and formal proceeding, with decisions which can be either legally binding or non-binding. The ADR process can include any of the following,

• Arbitration
• Collaborative law
• Conciliation
• Negotiation
• Mediation

An ADR has a distinct range of advantages in comparison to court proceedings. If your dealings with a trader/supplier have become acrimonious, then you will not have the stress and anxiety of facing them in court. An ADR can be conducted by written communication. It will all depend on which ADR process you wish to proceed with.

Alongside a less stressful process of litigation, the cost of an ADR can be lower than with court litigation. The ADR proceedings will also remain private, which may save you the anxiety or embarrassment of having your private dealings made public. Compared to a court case, an ADR is less complex, more flexible, which usually leads to a quicker resolution.

Of course, there are some disadvantages to an ADR. You may wish to publicly state your case, and do so with the defendant being present. The ADR decision is judged by an arbitrator. If the arbitrator wishes to make their decision legally binding (which you do not agree with it), then you may be restricted from taking further court litigation.

The UK judiciary is largely in favour of ADR schemes. In fact, they are beginning to demand that parties enter into some kind of ADR before issuing court proceeding.