As part of CDRL (an ADR provider that’s been around 12 years ‘til now!), we at Consumer Arbitration have heard it all when it comes to Arbitration:

> How much does it cost?
(See info on that on our About Us page!)

> Who can I complain about?
(Any of our Participating Member Traders!)

> Does it ACTUALLY work?
(Yes!)

… But one thing everybody seems to always get confused about is what exactly ADR, Arbitration, and Adjudication even are. 

It’s understandable – they all begin with A, CDRL operates schemes that span all of them, and quite frankly, you’re unlikely to encounter those terms in daily life if you’re not a lawyer. 

So, let’s settle once and for all: What IS the difference between Arbitration, Adjudication, and ADR?

If you’re curious about what other ADR schemes CDRL operates, check them out below!

> AviationADR

> RetailADR

> CommsADR

> UtilitiesADR

So, what is ADR?

Let’s make one thing clear before we even begin to explain: ADR is an overarching term, which encompasses both Adjudication and Arbitration. In fact, both Adjudication and Arbitration are types of ADR. 

In the legal context, ADR stands for Alternative Dispute Resolution. But since that’s a bit of a word-salad, you can think of it as A Different Route;

ADR refers to methods of resolving disputes/complaints with companies out of court. That’s why the A stands for Alternative – it’s an Alternative to court. 

ADR is often simpler, cheaper, and quicker than settling your complaint in the courtroom. What’s more – it’s usually legally binding anyway!

For example, take this comparison between the Consumer Arbitration and UK Court fees:

CONSUMER ARBITRATION:

COURT:

… And the fees to take your complaint to Court keep climbing beyond these figures, depending on the amount you’re claiming. Check the UK Government’s official website for up-to-date information.

Just using this comparison alone, you can see that the ADR scheme (in this case, Consumer Arbitration) is far cheaper to use than going to court; even our fee for the highest value claims bracket (£25) is below the minimum you’d pay to claim back far less in the courtroom (£35), and our outcomes are just as legally binding!

… And what if we told you Consumer Arbitration is the only ADR scheme CDRL operates that actually charges a fee? The rest of CDRL’s ADR schemes are completely FREE to use!:

> AviationADR

> RetailADR

> CommsADR

> UtilitiesADR

There are many different types of ADR, and it can cover all kinds of sectors: ranging from rail, to banking, to air-travel, all the way to your utility bills. Every ADR provider (such as CDRL) will have different sectors they specialise in, and different companies they can help you resolve complaints about.

If you want to learn more about all the different types of ADR that exist beyond just Arbitration & Adjudication, please see our dedicated article on this: What is Alternative Dispute Resolution (ADR)?

What is Arbitration? What is Adjudication?

So, now you know that Arbitration and Adjudication are types of ADR… What makes them unique, and what differentiates them from one another? 

Though both Arbitration and Adjudication are similar, the main differences between them are: the deadlines for each process, the cost, and the outcome. Let’s use our very own Arbitration scheme – Consumer Arbitration – as an example. 

A brief summary of our Consumer Arbitration Complaints Process:

1. You submit your complaint, and pay the Claimant Fee
2. The trader gets 28 days to respond
3. If they challenge your complaint, you get 1 opportunity (within a 7-day window) to submit a Reply
4. The trader gets 1 opportunity to highlight any new content in your Reply
5. We establish a Complete Complaint File
6. An Arbitrator issues a written Award within 30 days of the Complete Complaint File
7. The Award is immediately legally binding under the Arbitration Act 1996, and is enforceable in the courts.  

… And now, let’s use one of our Adjudication schemes – RetailADR – as a comparison.

A brief summary of our RetailADR Complaints Process:

1. You submit your complaint for FREE
2. The trader gets 28 days to respond
3. If they challenge your complaint, you get 1 opportunity (within a 14-day window) to comment on their response
4. The trader gets 1 opportunity to provide any final comment of their own in reply
5. We establish a Complete Complaint File
6. An Adjudicator issues a written Determination within 60 days of the Complete Complaint File
7. The Determination is only legally binding once you have accepted it

As you can see from the above, our Arbitration Complaints Process differs from our Adjudication Complaints Process in 4 areas:

• There’s a fee you must pay (whereas our Adjudication schemes are free to use)
• You get 7 days to submit a Reply (this is 14 days for our Adjudication schemes)
• The Arbitral Award only takes 30 days to be issued (the Determination takes 60 days for our Adjudication schemes)
• The Arbitral Award is immediately legally binding (the Determination of our Adjudication schemes is only legally binding once you have accepted it)

If you’d like more in-depth information on the Complaints Process of either of these schemes, please follow the links below:

> Consumer Arbitration Complaints Process

> RetailADR Complaints Process

Obviously, we are just 1 ADR provider – every provider may have a slightly different Arbitration or Adjudication Complaints process with different timelines, outcomes, and rules. If you’re using another ADR service, please make sure to check their own guidelines for clarity! 

However, generally speaking, the following distinctions are usually true:

• Arbitration usually has a faster turnaround time than Adjudication
• Arbitration is usually paid, whereas Adjudication is usually free
• The outcome of Arbitration is usually immediately legally binding, whereas the outcome of Adjudication is usually only legally binding once you’ve accepted it

… That’s it! It’s not as complicated as the legal terms make it sound.

So, to recap:

1. Alternative Dispute Resolution (ADR) is an overarching term for any method of resolving disputes with a company, out of court
2. Arbitration and Adjudication are types of ADR
3. Arbitration and Adjudication are similar, but have:
   – Different time-frames & deadlines
   – Different fees (if applicable)
   – Different outcomes (though both can be legally binding)

How do I get started?

If you’re interested in using our Consumer Arbitration scheme to escalate your complaint, you can do this in whichever way suits you – through our online portal, by post, or by phone!:

> Start your complaint with Consumer Arbitration

> What to do before you come to us

> Complaints we can deal with

> Complaints Process

Take a little time to read through our site so you understand our Arbitration process and what’s required. You’ll be an expert in no time!

Want to learn more about Alternative Dispute Resolution? Follow our social media platforms below!

YouTube  / Instagram / Facebook