BVRLA offers clarification on ADR complaints

FOLLOWING a recent Leasing Broker Committee meeting, where concerns were raised over members facing charges for the same customer using both the BVRLA Alternative Dispute Resolution (ADR) and Financial Ombudsman Service (FOS) to review the same complaint, the BVRLA has offered this information for BVRLA leasing brokers.

1. The BVRLA is a recognised ADR entity, approved by the Trading Standards Institute, the UK’s competent authority covering ADR schemes
2. The ADR regulations entitle the BVRLA ADR service to decline accepting a complaint if “the dispute is being, or has been previously, considered by another certified ADR provider or by a court.” The BVRLA makes this clear on its website and when submitting a complaint online, the customer is asked if they have already raised the matter with another ADR. If they answer yes, they cannot proceed any further. If, however, the customer fails to disclose they have already raised the matter with FOS and the member makes us aware, the BVRLA will be entitled to cancel the case (with no charge to the member).
3. The Financial Conduct Authority’s handbook under DISP. DISP 3.3.4A (2) says that: “The Ombudsman may dismiss a complaint referred to the Financial Ombudsman Service on or after 9 July 2015 without considering its merits if the Ombudsman considers that … the subject matter of the complaint has been dealt with, or is being dealt with, by a comparable ADR entity. So, FOS may elect to dismiss a complaint if it is satisfied that it was dealt with by the BVRLA ADR service;
4. The member does not have the right to decline the escalated complaint, whether it be with FOS or the BVRLA, however they may advise either service that the complaint has already been considered by a comparable ADR entity, provide evidence of this, and state that it would be their understanding that it would now not be considered by another service. The ultimate decision whether to dismiss the complaint or not would lie with the BVRLA or FOS.