The Motor Ombudsman marks a decade of alternative dispute resolution with nearly one million contacts

Reaffirming its authoritative role having processed approximately 150,000 cases and received close to one million contacts from consumers and businesses

The Motor Ombudsman marks a decade of alternative dispute resolution with nearly one million contacts

The Alternative Dispute Resolution (ADR) Regulations, which came into force in the UK on 9th July 2015, have reached a significant milestone, marking a decade of operation across various sectors, including the motor industry. Coinciding with this anniversary, The Motor Ombudsman has announced that it has registered nearly one million contacts from consumers and businesses over the past ten years, solidifying its position as the leading ADR provider for the automotive sector.

The ADR legislation was introduced to provide a formal framework, implementing requirements from an EU Directive published in 2013. This legislation established clear guidelines for consumers and businesses to resolve disputes quickly and fairly via an impartial third party, offering an alternative to often costly and time-consuming legal processes. Crucially, ADR provided consumers with a dedicated avenue to resolve complaints when direct agreement with a business proved challenging.

One of the pioneering ADR bodies to be certified in the automotive industry by the Chartered Trading Standards Institute (CTSI) in 2015 was Motor Codes. As part of the government’s mandate for the self-regulation of the motor industry, Motor Codes had already been operating CTSI-backed Motor Industry Codes of Practice since 2008. Its initial purpose was to reduce consumer detriment and elevate standards throughout the vehicle purchase and ownership journey, while also offering conciliation and arbitration services to help motorists and businesses conclude unresolved disputes in a neutral and confidential setting.

A year after the Regulations were introduced, ADR gained further prominence in the automotive industry with the launch of The Motor Ombudsman in 2016. Evolving from its predecessor, Motor Codes, it became the first and only Ombudsman in the sector, taking on the role of an approved ADR body. Offering a free-of-charge service for consumers, The Motor Ombudsman has since grown considerably in size, stature, and public awareness. It has become a primary destination for resolving motoring disputes and stands as the largest in-house automotive-specific ADR provider.

Over the past decade, The Motor Ombudsman has received more than 955,000 contacts, averaging around 200 enquiries daily. During this period, approximately 150,000 individual cases have been processed. The majority of these disputes have originated from specific areas: issues related to the sale of a used car by a business, concerns regarding the standard of work provided during routine vehicle maintenance or ad hoc repairs, and a lack of clarity concerning warranty terms and coverage at the point of sale or when consumers make a claim. These consistent themes highlight areas where consumers often seek impartial intervention.

Beyond its core dispute resolution function, The Motor Ombudsman has served as an important source of valuable insight and expertise for the motor industry. It has also acted as a beacon of support, guidance, and information for the nation’s consumers and its extensive network of over 7,500 accredited businesses across the UK. This network includes both franchise and independent car retailers and repairers, nearly 50 vehicle manufacturers (accounting for 98% of vehicles sold to consumers), and a portfolio of close to 20 extended vehicle warranty providers, covering around 75% of the market.

Bill Fennell, Managing Director and Chief Ombudsman at The Motor Ombudsman, reflected on the milestone: “Since their inception a decade ago, the ADR Regulations have provided an effective framework for consumers and businesses to resolve disputes in an environment that champions impartiality, fairness and transparency to determine an outcome that is proportionate and reflects the course of events that drove any elements of dissatisfaction.”

He further elaborated on the organisation’s foundational principles: “The legislation sits at the heart of how we work as an organisation and steers the very essence of our business. As we reach another milestone in our journey of close to one million contacts, we continue to see growing demand for our service as more and more businesses and consumers recognise the benefit of turning to ADR as an impartial ‘referee’ to find the best route forward following a complaint, thereby helping to preserve all-important long-term relationships and trust.”

Looking to the future, Bill Fennell indicated that the service will continue to adapt to the rapidly changing ADR landscape. He noted that the increasing prominence of artificial intelligence (AI), the electrification of vehicles, the adoption of new technologies, and the arrival of the Digital Markets, Competition and Consumers Act are key factors that will shape future processes and the dynamic ADR agenda.

In conclusion, The Motor Ombudsman’s journey over the past decade reinforces its authoritative standing and its ongoing commitment to serving the automotive sector and consumers in an increasingly complex and technologically advanced market.

For more information about The Motor Ombudsman’s Alternative Dispute Resolution (ADR) service please click here.

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