Car dealers urged to act on dispute resolution

Car dealers are running out of time to register with an Alternative Dispute Resolution (ADR) provider, Motor Codes has warned.

The government-approved consumer watchdog for the automotive industry wanted to remind motor traders that when new laws come into effect on 1 October 2015 it will be compulsory for all dealers to have ADR mechanisms in place. This has been designed to aid the process of finding fair conclusions to any disputes between customers and dealers.

An ADR provider will not just help the customer but will also offer support for the businesses too. As with their road risks insurance or motor trade insurance provider, it will help a car dealer to cope with any unexpected issues it could face and ensure problems do not escalate to unmanageable levels.

Motorcode's warning follows a £1 million fine that was given to an operator in the communications industry for failing to provide the correct information and guidance to consumers, Car Dealer Magazine reported. Since 2011, the communications industry has been bound by ADR regulation with Ofcom, the UK’s independent regulator and competition authority for the sector, penalising companies who to not adhere with the regulation.

Mark Terry, interim managing director of Motor Codes, commented: "This legislation seeks to reduce the time it takes businesses to resolve customer complaints, to ensure less time is spent in the courts resolving disputes and to improve consumers’ confidence in the companies that serve them.

"It’s an opportunity for businesses to enhance customer satisfaction and trust in an already highly-performing industry."