TMO records nearly a million contacts as ADR Regulations mark a decade
As the Alternative Dispute Resolution (ADR) Regulations mark their 10-year anniversary since coming into force on 9th July 2015, The Motor Ombudsman has recorded more than 955,000 contacts, and processed circa 150,000 individual cases across the last decade
ADR legislation was introduced to provide a formal framework to help consumers and businesses resolve disputes quickly and fairly via an impartial third party, outside of often costly and time-consuming legal processes
Used car complaints, the standard of work provided during the repair and maintenance of vehicles, and clarity in relation to warranty terms and coverage, have driven the majority of disputes seen by The Motor Ombudsman’s Alternative Dispute Resolution (ADR) service
The Motor Ombudsman has grown to become the leading automotive-specific ADR provider, and an authoritative body providing motorists and industry with valuable guidance, resources and insight
The Motor Ombudsman has registered nearly one million contacts from consumers and businesses across the last decade*, reinforcing its authoritative standing as the leading Alternative Dispute Resolution (ADR) provider for the automotive sector. This milestone comes as the ADR Regulations1, which came into force in the UK on 9th July 2015, reach a significant landmark of ten years of being in operation across a wide range of sectors, including the motor industry.
The ADR Regulations implemented the requirements of an EU Directive published in 20132, and was a significant piece of legislation that provided a formal mechanism and guidelines for consumers and businesses to help resolve disputes quickly and fairly via an impartial third party, outside of often costly and time-consuming legal processes. On this point, ADR gave consumers an avenue to help resolve complaints, in the event that they are unable to come to an agreement with a business in the first instance.
One of the first ADR bodies to be certified in 2015 in the automotive industry by the Chartered Trading Standards Institute (CTSI) – a ‘Competent Authority’ i.e. an overarching body for ADR, was Motor Codes. As part of the government’s mandate for the self-regulation of the motor industry, Motor Codes had already been operating CTSI-backed Motor Industry Codes of Practice since 2008 to help reduce consumer detriment and drive standards higher across the customer vehicle purchase and ownership journey, whilst also providing conciliation and arbitration services for motorists and businesses to engage in bringing unconcluded disputes to a close in a neutral and confidential setting.
In 2016, a year after the Regulations were introduced, ADR was cast into the spotlight in the automotive industry with the launch of The Motor Ombudsman. Becoming the first and only Ombudsman in the sector, it evolved from its predecessor Motor Codes to take on the role as an approved ADR body. Offering a free-of-charge service for consumers, The Motor Ombudsman has since grown in terms of size, stature and awareness to become the ‘go-to’ destination for the resolution of motoring disputes, and the largest, in-house automotive-specific ADR provider.
Over the last decade, more than 955,000 contacts have been received by The Motor Ombudsman*, equating to an average of 200 every day, whilst around 150,000 cases have also been processed since 2015. The majority of disputes have stemmed from the sale of a used car by a business, the standard of work provided during routine maintenance of ad hoc repairs, and the clarity of terms and coverage of warranties at the point of sale or when consumers make a claim.
Whilst the ADR Regulations have been in force, The Motor Ombudsman has served as an important source of valuable insight and expertise for the motor industry, as well as being a beacon of support, guidance and information for the nation’s consumers and more than 7,500 accredited businesses across the UK. These include franchise and independent car retailers and repairers, nearly 50 vehicle manufacturers which account for 98% of vehicles sold to consumers, and a portfolio of close to 20 extended vehicle warranty providers covering around 75% of the market.
Bill Fennell, Managing Director and Chief Ombudsman at The Motor Ombudsman, said: “Since their inception a decade ago, the ADR Regulations have provided an effective framework for consumers and businesses to resolve disputes in an environment that champions impartiality, fairness and transparency to determine an outcome that is proportionate and reflects the course of events that drove any elements of dissatisfaction.
“The legislation sits at the heart of how we work as an organisation and steers the very essence of our business. As we reach another milestone in our journey of close to one million contacts, we continue to see growing demand for our service as more and more businesses and consumers recognise the benefit of turning to ADR as an impartial ‘referee’ to find the best route forward following a complaint, thereby helping to preserve all-important long-term relationships and trust.”
Bill added: “As we look ahead to the future, our service will continue to evolve in line with the rapidly changing nature of the ADR landscape. The rising prominence of artificial intelligence (AI) and the electrification of vehicles, the adoption of new technologies, and the arrival of the Digital Markets, Competition and Consumers Act, are just some of the key factors that will shape processes and the dynamic ADR agenda going forward.”