Guide · Complaints & Disputes

Alternative dispute resolution

ADR schemes, ombudsmen and adjudication as alternatives to court in eligible disputes.

Reviewed 9 September 2026General information

ADR is an independent route for resolving disputes without starting court proceedings, but the scheme and powers depend on the sector.

Alternative dispute resolution includes ombudsmen, adjudication and other approved schemes. In consumer sectors such as telecoms and energy, providers may be required to belong to an ADR scheme. Financial services use the statutory Financial Ombudsman Service.

ADR is usually more accessible than court, but it has its own scope, evidence rules, remedies and acceptance consequences. Read the scheme terms before referring.

Key points

  • Check eligibility, waiting periods and referral deadlines.
  • Identify whether the decision will bind the business and when it binds you.
  • ADR can consider fairness and sector practice, but it is not necessarily applying court procedure.
  • Keep court limitation periods in mind; ADR does not automatically suspend them.

When ADR is useful

  • The organisation has reached final position
  • The dispute is fact/evidence heavy but proportionate for an ombudsman
  • Sector rules create a specialist route
  • The remedy sought falls within scheme powers

ADR versus regulator

A regulator enforces market rules; an ADR body resolves individual disputes. Sometimes you should report the same conduct to both for different purposes.

ADR versus court

Court can make legally binding determinations and has formal procedural/evidence rules. ADR is usually less formal and often free to consumers. The best route depends on remedy, value, complexity and time limits.

In practice

  • Check the scheme before writing the referral.
  • Tailor the evidence to the issues rather than sending the entire complaint archive.
  • State any legal principle, code or industry standard that the scheme is expected to consider.

What to do

A practical next-step plan

  1. Identify the correct scheme.
  2. Check jurisdiction and deadline.
  3. Complete the internal complaint step.
  4. Prepare issue list, chronology and evidence.
  5. State remedies within scheme powers.
  6. Review the decision and acceptance rules carefully.

Common traps

Things that often confuse the issue

  • Do not assume every “ombudsman” works identically.
  • Do not miss a court limitation deadline while using ADR.
  • Do not confuse systemic regulatory action with your individual remedy.

Evidence worth keeping

Issue list
Chronology
Evidence index
Key correspondence
Final response/deadlock letter
Any decision and scheme rules/terms of reference

Do not assume ADR stops limitation.

Critical check.

Before agreeing to a long mediation or waiting for an adjudicator, check whether court/tribunal limitation continues to run and whether a standstill agreement or protective filing is needed.

Prepare for ADR as if someone independent will test both sides.

  • Short chronology
  • Issue list
  • Contract/final response
  • Key evidence
  • Business position
  • Your response to that position
  • Remedy and calculation

Good ADR preparation often doubles as pre-action preparation if the dispute later moves to court.

Use ADR when it can actually resolve the live remedy.

ADR can be particularly effective for refund, billing, service, compensation or contract disputes where the scheme has jurisdiction and the evidence is manageable. It is less useful if the remedy you need is outside the scheme’s powers or a limitation deadline requires urgent court action.

ADR is a family of processes, not one universal scheme.

Mediation, adjudication, arbitration and ombudsman-style schemes operate differently. Some produce binding decisions; some depend on agreement; some are free to consumers; others may charge. Always read the scheme rules and identify what happens if you accept or reject the outcome.

Related ConsumerWise guidance

Continue from here.

Complaining about a solicitorDistinguish poor service from regulatory conduct concerns and route them to the firm, Legal Ombudsman or SRA as appropriComplaint timelinesTrack complaint stages, response dates, deadlines, deadlock and external escalation windows.Escalation routesA disciplined escalation ladder: organisation, final response/deadlock, ADR/ombudsman, regulator, court or other specialFinal responses & deadlockWhat final responses and deadlock letters do, what they should contain and what deadlines they trigger.

Official sources

Check the rules behind this guide

ADR is a broad category. The procedure and legal effect depend on the particular scheme, so always check the rules of the body dealing with your dispute.

These are official or primary sources for this topic. Rules, scheme terms and deadlines can change, so check the live source before relying on a formal time limit or procedure.