5 Common Questions About Consumer Dispute Resolution
What is consumer dispute resolution?
Consumer dispute resolution is a process of taking up disputes between consumers and businesses outside the courts or formal legal procedure. In other words, it means resolving disputes without having the case go to court, such as mediation, arbitration, or consumer complaint handling systems.
How does mediation in consumer dispute resolution work?
In this mediation, a neutral third party, usually referred to as a mediator, assists the consumer and the business in communicating and finding a mutually acceptable solution. A mediator does not decide but helps both the parties find and understand each other’s own perspectives and create a middle ground.
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What is arbitration?
Arbitration Arbitration is a more formal process by which an impartial third party, called an arbitrator, listens to both sides and then makes a binding decision. It is often used when mediation does not work out and is legally enforceable in court.
How do I file a consumer dispute resolution complaint?
Typically, consumers first have to contact the business or service provider’s customer service team for them to file their complaints. Third-party dispute resolution bodies, including government agencies, ombudsman services, or private arbitration/mediation providers, can be approached in case the issue is not resolved.
Is consumer dispute resolution free of charge?
Some dispute resolution services are free or low-cost, especially if they are government-backed. But private arbitration or mediation services might charge fees according to the issue’s complexity and the provider’s policies.