2.Main Content
IDRS
This page contains information about the alternative dispute resolution (ADR) provider IDRS ltd (IDRS).
What it does
Advantages and disadvantages
Which complaints are eligible and which are not?
Cost
Timescale
Procedure
Outcomes
What it does
IDRS provides dispute resolution services to individuals and businesses. It is a wholly-owned subsidiary of the Chartered Institute of Arbitrators (CIArb). IDRS administers independent conciliation, mediation, adjudication and arbitration schemes to settle complaints and disputes involving individual companies, members of trade associations, professional bodies, and their customers. All its neutrals are qualified members of the CIArb and are selected from specialist panels.
This website has separate pages describing two of the most used schemes run by IDRS for specific consumer areas:
- Arbitration for disputes between consumers and travel agents or tour operators ABTA arbitration
- Adjudication for disputes over telecommunications and internet provision CISAS
IDRS also provides the dispute resolution process for two of the three tenancy deposit protection schemes approved by the government, and which are compulsory from April 6th 2007. You can find more information on the Tenancy deposit disputes page on this website.
IDRS also runs a wide range of schemes for other trade associations and consumer sectors, including:
- building and home improvements
- funeral services
- home removals
A full list is available from IDRS.
Each IDRS scheme is slightly different, and most include a range of dispute resolution options. Some, like the Funeral Arbitration Scheme, have a staged process which begins with a conciliation stage, and then moves on to arbitration if the parties are unable to agree a settlement. The typical options included in an IDRS scheme are described below. This information applies in England and Wales, Scotland, Northern Ireland, the Isle of Man and the Channel Islands.
Advantages
- It is either free, or costs less than the small claims court
- It is independent and impartial
- It is relatively quick
- There is no need to attend a hearing - most are documents-only processes
- Compliance with an award is usually high because of pressure from the company's trade association - but if necessary arbitration awards can also be enforced through the court in the same way as a court judgement
- The losing party will not have to pay the other side's legal costs
Disadvantages
- IDRS will not give advice to the consumer about whether or not the proposed settlement is suitable
- Since no hearing is held, you will not have the chance to have your say in person, or to discuss your concerns with the other side face-to-face
- If you are not happy with the decisions made by the arbitrator, there are few grounds for appeal, and where an appeal is possible it can be expensive
- Arbitration is binding - this means that in most schemes you cannot take your case to court if you are not happy with the decision
Note that there is a difference between adjudication and arbitration. With adjudication, the consumer can decide whether or not to accept the adjudicator's decision. If you are not happy with what has been decided, you can take your case to court instead. With arbitration, the arbitrator's decision is binding on both parties. IDRS offers both arbitration and adjudication schemes, so check which one applies to you.
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Which complaints are eligible and which are not?
Trade association dispute resolution schemes cover a range of complaints about the services provided by those associations' member traders and organisations. The dispute must be about a breach of some term of the contract between the consumer and the supplier, but the consumer must first have used the complaints procedure of the company, or of the trade association, if one is available.
Claims that are not eligible include:
- claims over a certain value
- claims made outside the time limit
Time limits, values and types of claim vary from scheme to scheme so check the individual scheme rules via the IDRS website.
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Cost
Increasingly, as IDRS replaces older arbitration schemes with newer conciliation and adjudication schemes, using an IDRS scheme is free for the consumer. However, for some schemes claimants pay a registration fee and their own expenses for photocopying and postage. If a registration fee is charged, it will be less than the equivalent fee for going to court. You can find out the details of charges on the IDRS website.
Note: Most people using IDRS schemes are not legally represented, though around 25% of those taking a complaint to the ABTA arbitration scheme have legal advice. If you do get legal advice and support, your costs are not recoverable.
In England and Wales, Legal Aid is available to eligible clients for help preparing for arbitration and arbitration fees, but not for representation at an arbitration hearing. In Scotland, advice and assistance may be available for legal work in preparing a claim.
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Timescale
The timescale will vary, but generally conciliation will take around four weeks, adjudication will take around eight weeks, and arbitration will take around twelve weeks. Factors affecting the time taken will include:
- the number of different dispute resolution stages included in the scheme
- how long the parties take to respond to requests for information
- the extent of other information needed by the arbitrator, such as site visits or expert reports
- whether or not a hearing is held
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Procedure
Whichever ADR process you use, you must first try to resolve the dispute directly with the organisation concerned. Where a complaint is rejected, or there has been no reply, or the dispute has not been resolved within a specified timeframe, the dispute can be referred to the trade association's complaints procedure, if they have one.
Some trade associations incorporate a Conciliation stage in their complaints procedure. This can be a way for consumers to get their complaint resolved at an early stage. One disadvantage of this type of conciliation is that, as it is offered by the trade association, it might not be seen as genuinely independent and impartial.
Early dispute resolution
Some schemes run by IDRS, such as the Funeral Arbitration Scheme, offer free and independent conciliation through IDRS. If both parties agree to a settlement brokered by a conciliator, then the dispute is resolved. If they cannot agree, then the claimant can apply for arbitration.
Some schemes, such as the RAPID scheme for resolving disputes involving personal injury and illness, have a series of dispute resolution stages:
- Mediation – a non-binding meeting with a neutral mediator to try to agree a solution
- Adjudication – a decision by an independent adjudicator, which is binding on the company if the consumer accepts it
- Arbitration – a decision by an independent arbitrator, based on paper information or on a hearing, which is binding on both parties
To find out how to use one of the IDRS dispute resolution schemes, have a look at the IDRS website – each scheme has its own rules. If the rules for any particular scheme are not on the website, phone IDRS on 0207 520 3800 for details.
Arbitration
For more information about how arbitration works, have a look at the Arbitration page on this website.
Note: If you are applying for an ARBITRATION scheme, once you have signed the application form, you have agreed to be bound by the arbitrator’s decision. This means that you will be unable to take the claim to court, whatever the outcome. It is therefore important to have considered the pros and cons, and made an informed decision about whether or not to use arbitration before submitting an application form.
One thing to consider is whether any settlement offers have been made. If the final arbitration award is lower than any settlement offer, the claimant may have to pay the other side's registration fee, and even perhaps their costs. This is a bit of a gamble - it is hard to guess what level an arbitration award may be, since these awards are not made public. It is worth getting independent advice from someone with experience in the relevant area.
Once an application has been made for arbitration, an arbitrator is appointed by IDRS from its panel of arbitrators, who are all members of the CIArb.
Many consumer arbitrations are decided on the basis of documents only, so it is important to make sure that you send in all the relevant documents, all the evidence the arbitrator will need, and all the supporting evidence. You will not be allowed to raise any new matters or new points of claim once the claim has been submitted.
The arbitrator will not investigate the issue, or contact you to ask for any more information, so it is not enough merely to submit a list of names of witnesses. Any witness statements must be obtained and submitted with the claim. Most important, the claim must demonstrate that there was a breach of some term of the contract and that the claimant took steps to reduce the loss suffered.
For guidance on submitting a claim, see the scheme guidance notes on the IDRS website.
The completed claim form is then sent to the company you are complaining about, who can submit a defence. This is sent back to you, so you can respond to the points made in the defence. It is crucial in this response to address all the counterclaims raised by the trader. If evidence submitted by the trader is considered valid by the arbitrator and is not refuted by the claimant, the arbitrator will treat that allegation as true.
The arbitrator is sent the claim and all responses and supporting evidence, and in most cases makes a decision on the basis of the documents only. Sometimes site visits can be arranged, and in some cases a hearing is held.
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Outcomes
If the dispute is dealt with through mediation or conciliation, then it is up to both parties to decide whether or not to accept the agreement. If the parties cannot agree, the dispute will normally go on to adjudication or arbitration, depending on the scheme rules.
If a recommendation is made by an IDRS adjudicator, then it is up to the complainant to decide whether to accept it. If you have made the complaint, and you are happy to accept the adjudicator’s recommendation, then it is binding on the company. If not, you are still able to take the case to court.
If the dispute has gone to arbitration, a written decision (the award) will be sent to the parties, usually within three weeks of the arbitrator having received all the documents. The award states brief reasons and is binding on both parties. In other words, if you remain dissatisfied, you cannot take the claim to court.
The arbitrator can:
- award compensation to the claimant – this might include the registration fee, and possibly an element for distress
- order a party to do or not do something
- order the parties to carry out a contract
- order that a document be changed or cancelled
The arbitrator cannot order one party to apologise to another.
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Revised July 2007
Key websites
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