The 1st October 2016 marked the first anniversary of the day that companies across the length and breadth of the UK were required to comply with the Consumer Rights Act 2015 and Alternative Dispute Resolution (ADR) regulations. These two laws changed the way that traders, including those operating in the automotive sector, undertook business with consumers.
The introduction of the Consumer Rights Act proved significant, as it replaced the Sale of Goods Act 1979, the Unfair Terms in Consumer Contracts Regulations and the Supply of Goods and Services Act 1982. Amongst other clauses, this Act ensures that consumers have the right to have faults corrected free of charge, or to be granted a refund or replacement. The primary objective of ADR is to settle a dispute between a consumer and a business through a neutral third party without the need to go to court, thereby avoiding the associated expense and reducing the time cases can take to resolve.
Signing up to a CTSI-approved ADR body, such as Motor Codes, gives consumers added peace of mind and reassurance that they have somewhere to turn to in the rare instance that something goes wrong that cannot be resolved with the garage or dealership. This can prove to be an important factor in their purchasing decision. In the event of a customer complaint, businesses must be able to direct them to a supplier of ADR, although, under the legislation, they are not obliged to use one. However, if the dispute is then escalated to the courtroom, a judge will take into account whether either party has tried to engage in ADR when considering their ruling.
Motor Codes is today the leading provider of ADR in the automotive sector. Delivered through its Code Adjudication Service, and operated by a team of adjudicators, all hold law degrees, amongst other qualifications, such as certification from the Institute of the Motor Industry. They are fully impartial and act on behalf of consumers and businesses in equal measure, to find a resolution to disputes that cannot be resolved directly by the two parties involved. This is achieved by looking at any breaches of the Motor Codes’ Industry Codes of Practice, and, where necessary, consulting relevant clauses of consumer law such as the Consumer Rights Act or the Consumer Contracts regulations (formerly Distance Selling).
Motor Codes’ Code Adjudication Service has become an increasingly sought-after service, especially during the last 12 months, as the understanding of motorists of the benefits of ADR and where they stand under consumer law has become greater. In fact, since Motor Codes was established in 2008, 100,000 enquiries have been received by the adjudication team, and 2016 is set to witness the highest ever annual volume of contacts from consumers.
Calls and online queries received by adjudicators from motorists vary from concerns around recalls and press stories on vehicle emissions, to the quality of work and the service received when a vehicle has been serviced or repaired. Many will not need a case to be raised, as they can often be solved through the provision of information and managing expectations. However, where a case has been opened involving the customer of a garage or dealership who is a member of a Motor Codes’ Industry Code of Practice, the majority of these are brought to a satisfactory conclusion through adjudication without the need for a final decision (formerly known as arbitration) or the need for costly legal action.
In response to the unveiling of the laws last October, Motor Codes launched individual CPD-certified online e-training courses for businesses, where the tuition is focused on the Consumer Rights Act and ADR. They are designed to help organisations understand the implications of the regulations, and what actions they need to undertake, to avoid contravening any of the clauses contained within it.
Developed in partnership with the Chartered Trading Standards Institute (CTSI), the 45-minute lesson plan on ADR covers a multitude of areas, including time limits to resolve disputes as well as the need to point your customers to an ADR body. The Consumer Rights Act course, of the same duration, touches on legal obligations, case studies, the remedies available to businesses and consumer entitlement.
As well as enhancing knowledge and keeping organisations on the right side of the legislation, there are numerous benefits of completing Motor Codes’ online training programme, instead of one which is classroom-based. There are no travel expenses to contend with as they do not take people away from the place of work. They are also SCORM-compliant, meaning that any of the modules within Motor Codes’ portfolio can be stopped and started to suit an individual’s workload. This avoids the pressure to complete them all at once. Furthermore, after finishing a course, participants are able to download a Motor Codes and CTSI certificate for their own records.
For more information on Alternative Dispute Resolution (ADR), visit www.motorcodes.co.uk/garage/garages-adr.html
For more information on Motor Codes’ suite of e-learning courses, which are priced at £25+VAT per course per person, visit http://elearning.motorcodes.co.uk
