A rejected refund request does not have to lead straight to court. If a UK business stops responding, disputes your evidence or offers an unfair solution, alternative dispute resolution (ADR) may provide a practical next step. An independent person or organisation helps resolve the disagreement, often without litigation.
The question is which route fits your complaint, whether the trader must participate and what accepting an outcome could mean for your rights.
Where ADR fits in a consumer complaint
Alternative dispute resolution for UK consumers usually begins after you have complained directly to the trader and allowed it to put things right. It can help with faulty goods, poor workmanship, incorrect bills and services that fall short of what was promised.
Start with a written complaint explaining the problem, the remedy you want and a reasonable response deadline. Keep receipts, photographs, contracts and correspondence. A clear consumer complaint letter is often more effective than recounting every frustrating telephone call.
If the business issues a final response or reaches an impasse, check whether an ADR scheme can consider your dispute. ADR is an alternative to litigation, not a replacement for your consumer rights.
Mediation, ombudsmen and arbitration: what changes?
Mediation and conciliation
In mediation, an independent mediator helps both sides negotiate but does not normally impose a decision. You and the trader decide whether to agree, making it useful when compromise is possible over a repair, partial refund or completion date.
Conciliation is similar, although the conciliator may actively suggest solutions. For a mediation consumer dispute, ask about costs, confidentiality and whether a written settlement will become binding.
Ombudsman schemes
Ombudsman schemes investigate complaints in particular sectors. The Financial Ombudsman Service handles eligible financial complaints, while the Energy Ombudsman deals with qualifying energy disputes. They assess evidence and can offer remedies under their own rules.
These services are generally free for consumers, but eligibility and deadlines matter. You normally complain to the business first. An ombudsman covering one industry cannot necessarily examine a similar problem in another.
Arbitration and adjudication
Arbitration involves an independent decision-maker examining the dispute and issuing a decision that may be legally binding. Some specialist schemes use adjudication, with different rules about whether either side can reject the result.
Read the scheme’s terms before starting. An accepted binding award could limit further options.
Must a UK trader offer ADR?
Not every shop or service provider must join an ombudsman or agree to mediation. Participation can be compulsory in regulated sectors or because a business has committed to a scheme through a contract or industry arrangement. Otherwise, consent may be voluntary.
Under rules introduced through the Digital Markets, Competition and Consumers Act 2024, with relevant provisions in force from 6 April 2026, traders communicating the outcome of a complaint must inform consumers about qualifying dispute resolution arrangements they are obliged to participate in. This duty does not force every trader to join a new scheme.
The 2026 framework also provides for accredited and exempt ADR providers. Before sharing personal documents or paying a fee, check the provider’s status, coverage and published procedure. A trade association logo alone does not prove your case is eligible.
How to find and use the right scheme
Match the scheme to the trader, not just the problem
Check the trader’s final response, complaints policy and relevant regulator or ombudsman’s guidance. Ask which scheme the business belongs to, whether membership is mandatory and whether it covers your purchase and contract type.
Submit a concise timeline with your order confirmation, complaint, business response and supporting evidence. Explain what would settle the matter: a refund, corrected bill, repair, apology or appropriate compensation.
Check submission deadlines, waiting periods and whether another process affects eligibility. Rules differ. Many complaints to the Financial Ombudsman Service can be referred after a final response or the normal business response period; a valid final response usually starts a six-month referral deadline.
Keep track of dates. ADR does not automatically pause court limitation periods, and some schemes refuse cases already decided by a court.
A practical example: a disputed appliance repair
Imagine paying £240 for a washing-machine repair. The same fault returns four days later, but the engineer insists the new problem is unrelated and refuses further work. Instead of immediately threatening proceedings, write to the repair business with your invoice, the original fault description and a video showing the current problem.
Request a suitable remedy and a written response. If the complaint stalls, ask whether the firm participates in an accredited ADR scheme through its trade association. With mediation, you might agree to an independent inspection followed by a repair or refund depending on the findings.
Setting out the evidence and proposed remedy early helps prevent a dispute about a faulty machine becoming an argument about telephone conversations.
When ADR helps, and when court may still matter
ADR can be more flexible, less expensive and quicker than litigation. It may preserve a relationship with a local contractor. But availability varies, outcomes are not guaranteed and voluntary mediation may fail if the trader refuses to engage.
Think carefully before accepting a settlement described as full and final. Where deadlines are close, your claim is complex or urgent legal protection is needed, seek appropriate advice instead of relying on negotiation.
In England and Wales, parties are expected to consider suitable ways of resolving civil disputes before many court claims. If ADR fails, the next step may involve a formal letter before claim and the small claims court process. Scotland and Northern Ireland have different procedures, so use guidance for your nation.
Frequently asked questions
Can I use consumer ADR without the trader’s permission?
Sometimes. If a business is obliged to participate in an applicable scheme, you may be able to refer the complaint under its rules. Voluntary mediation generally requires both sides to agree.
Is alternative dispute resolution free in the UK?
Many ombudsman services are free to consumers. Costs vary elsewhere, and the 2026 framework regulates consumer fees charged by covered ADR providers. Check the scheme’s terms first.
Will an ombudsman’s decision prevent a court claim?
It depends on the scheme and whether you accept its outcome. Some accepted decisions become binding. Check the consequences before accepting, particularly if you believe your losses exceed the offered remedy.
How long should I wait before contacting an ombudsman?
Follow the scheme’s timetable. For example, many financial complaints normally allow eight weeks for a business response, while some payment-related complaints have shorter periods. An earlier final response may permit a quicker referral.
Choosing your next step
The sensible sequence is to complain to the trader, identify the relevant scheme, check deadlines and decide whether its process offers a fair resolution. Consumer ADR in the UK will not settle every dispute, but it can turn an entrenched complaint into a workable outcome before court becomes necessary.