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New ADR Options for consumer disputes
From 1st October 2008 there is a change in the way consumers can deal with complaints about energy suppliers, postal services and estate agents. The Consumers, Redress and Estate Agents Act, passed in 2007, requires all postal services, energy suppliers and estate agents to be members of an independent dispute resolution scheme.
Energy Suppliers
As with most complaints, the first stage is always to complain directly to the supplier. Again, Consumerdirect can provide information and advice about consumer rights, and how to complain. They will have a dedicated call centre to help with consumer complaints about energy suppliers in England, Wales and Scotland. They will advise individual consumers, and small businesses with under 10 staff.
Under the old system, Energywatch could take responsibility for sorting out complaints directly with the company. Consumer Direct cannot do this, though they may forward details to the supplier by email. However, extra help in dealing with complaints is available for vulnerable consumers, or for particularly urgent or complex problems such as the threat of disconnection. In these cases, Consumer Direct can refer consumers to Consumer Focus. Consumer Focus is the new name for the National Consumer Council, and its active help unit will take responsibility for following up such complaints with the suppliers concerned, and supporting vulnerable consumers through the complaints process.
If it is not possible to resolve the complaint satisfactorily with the supplier, the next stage is the Energy Ombudsman. From 1st October 2008 all gas or electricity suppliers and networks are required to be members of this ombudsman scheme, which has been approved by the regulator Ofgem. Again, the ombudsman will take complaints from individual consumers and small businesses with fewer than 10 staff.
Post
From 1st October, it is compulsory for all postal services, including the Royal Mail, to have a customer complaints scheme which is approved by Postcomm , the regulator. They must all also be members of a Postcomm approved redress scheme – so far, only one scheme, POSTRS, has been approved.
Consumers must first try to resolve their problem through the complaints department at the postal service they have used. These internal complaints procedures should be more consumer-friendly and efficient following new Postcomm guidelines. There is advice and information about making a complaint from Consumerdirect. Vulnerable consumers who need help with making a complaint can be referred to the extra help unit at Consumer Focus.
Complaints which can’t be resolved with the service can be taken to the Postal Redress Service, known as POSTRS. This is a free, independent adjudication service to resolve disputes between consumers and licensed postal service operators. There is more about the POSTRS scheme on the Postal Redress Service page on this site.
Estate Agents
From 1st October 2008 all estate agents are required to be members of an approved redress scheme. The Office of Fair Trading has approved two schemes:
- The Ombudsman for Estate Agents (OEA)
- The Surveyors Ombudsman Service
The OEA has been in operation for ten years, but until now membership has been voluntary.
As usual with ombudsman schemes, consumers who are trying to sell or to buy a house in the UK must first complain to the estate agent. If the problem can’t be resolved, then they can complain to whichever scheme their estate agent is a member of.
Consumers must have suffered some kind of financial loss, stress or inconvenience. Both schemes are free to consumers, and can make awards of up to £25,000 – though in the past, most awards made by the Ombudsman for Estate Agents have been for less than £500. There is more information about these schemes on the Estate Agents ombudsmen page on this site.
September 29th 2008
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