This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how dispute resolution services help resolve mis‑sold product complaints in England and Wales, including ADR schemes, ombudsman services, practical steps for consumers, and when court action might still be pursued. Guidance on consumer rights and resolution processes.
When a consumer in England or Wales believes they have been mis‑sold a product or service, resolving the dispute can be stressful and complex. Court action is not the only option: dispute resolution services offer less formal, often quicker and cheaper ways to reach an outcome without litigation. This article explains how dispute resolution works in the UK, the types of services available, how to use them for mis‑sold products, and the practical steps consumers should take when attempting to resolve a dispute.
Understanding Mis‑Selling and Consumer Rights
A product or service is mis‑sold when a consumer is induced to enter a contract based on inaccurate, incomplete or misleading information, or when the item is unsuitable for its intended purpose. Mis‑selling can occur across everyday goods and specialist services, and includes issues such as unclear terms, hidden fees, misleading advertising or unsuitable recommendations.
Consumers have statutory rights under laws including the Consumer Rights Act 2015 and other protections that cover contracts, quality and fitness for purpose. When those rights are breached, consumers may seek redress through one or a combination of informal complaints, dispute resolution services (often referred to as Alternative Dispute Resolution (ADR)), or court proceedings.
What Is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution (ADR) refers to a range of processes aimed at resolving disputes between consumers and traders outside of court. ADR is intended to be less formal than litigation, typically quicker, cheaper, and focused on reaching a fair outcome. Common forms of ADR include:
- Mediation – a neutral third party facilitates negotiation between the consumer and the trader.
- Conciliation – similar to mediation but often more structured.
- Adjudication – an independent expert reviews the dispute and makes a determination.
- Ombudsman schemes – specialist ADR bodies that investigate and decide complaints, usually in regulated sectors like financial services.
Under the Alternative Dispute Resolution for Consumer Disputes Regulations 2015, traders must provide consumers with information about relevant ADR schemes when a dispute arises and cannot resolve it internally. They must also declare whether they intend to participate in ADR.
When Should Consumers Use Dispute Resolution Services?
Consumers should consider using dispute resolution services at the early stage of a dispute, once attempts to resolve the matter directly with the trader have failed. The recommended sequence is:
- Contact the trader's complaints department, ideally in writing, outlining the mis‑selling, the impact, and the remedy sought. Keep copies of all correspondence.
- Follow the trader's internal complaints procedure, which most reputable businesses publish on their website or provide on request.
- If the complaint remains unresolved, and an ADR scheme is available, ask the trader for details of the approved ADR provider. Traders are legally required to inform consumers about ADR options.
- Refer your dispute to the ADR provider. The ADR body will assess the complaint, seek information from both sides, and may propose a resolution.
Using ADR is often quicker than court, and decisions from recognised ombudsman schemes can be binding on traders who are scheme members. However, consumer participation in ADR is usually voluntary unless the business has contractually agreed to use it.
Types of Dispute Resolution Services Relevant to Mis‑Sold Products
1. Ombudsman Services
Certain sectors operate dedicated ombudsman services, which handle consumer complaints and can award remedies if mis‑selling is found:
- Financial Ombudsman Service (FOS) – covers financial products and services (e.g., mis‑sold insurance, loans or investment advice). Complaints generally must be referred to FOS after the provider's internal complaints procedure has been exhausted. FOS aims to respond within around 90 days of receiving a complete complaint. Consumers can still pursue court action even if they do not accept an ombudsman decision.
- Industry‑specific ombudsmen or ADR bodies – some sectors, like communications and energy, operate sector ADR schemes where membership is mandatory. For example, telecom providers must be registered with an Ofcom‑approved ADR scheme for consumer complaints.
- Independent ADR providers – such as entities like the Dispute Resolution Ombudsman, which provide impartial ADR services to consumers and businesses in various retail and service sectors where both parties agree to use the scheme.
These services vary in scope and jurisdiction. Some ombudsman schemes are statutory (with enforceable powers over member businesses), while others depend on membership agreements.
2. General ADR Schemes
In non‑regulated markets, many traders are members of ADR schemes offered through trade associations or independent bodies. These schemes offer processes such as mediation or adjudication to help reach resolution without court intervention. Consumers should check whether their contract or the trader's terms include an ADR clause and make use of the options presented.
Practical Steps for Using Dispute Resolution Services
1. Document the Issue Clearly
Keep all relevant documentation before submitting a complaint to an ADR service. This includes:
- Receipts and contracts showing what was sold.
- Written and electronic communications about the transaction.
- Evidence of misleading claims, such as screenshots or adverts.
- The trader's response to your initial complaint.
Well‑organised documentation helps ADR bodies understand and assess the dispute accurately.
2. Understand ADR Rules and Time Limits
Different ADR schemes may have specific time limits or procedural steps. For example, the FOS generally expects complaints within certain months of the final response from the provider, though exceptions can apply in compelling circumstances.
3. Submit to the Right Scheme
Ensure your complaint is referred to the correct ADR provider for your type of dispute. If a trader provides details of a certified ADR scheme in their final response, use that scheme before escalating the matter further.
4. Prepare for the ADR Process
Many ADR providers will ask for statements and evidence summaries from both sides. Respond promptly to information requests and be clear about the remedy you seek (e.g., refund, repair, compensation).
5. Understand the Outcomes
ADR outcomes vary. Some schemes may make binding decisions enforceable on traders who are members; others offer recommendations that can encourage settlement but are not legally enforceable. Know what power the ADR body has in your case before relying on the outcome.
Limitations and When Court Might Still Be Necessary
While ADR services can resolve many mis‑selling disputes effectively, they are not always the right solution in every case, especially where:
- The trader refuses to participate in ADR.
- The value or complexity of the dispute exceeds ADR thresholds.
- You seek a legal precedent or enforcement beyond ADR powers.
In such situations, pursuing a claim in the small claims court or higher civil courts remains an option, either alongside or following ADR attempts. Determine whether ADR results satisfy your objectives and weigh the benefits of court action if they do not.
Common Consumer Dispute Scenarios
- Mis‑sold financial products such as incorrectly sold insurance or unsuitable investment advice – usually referred first to the Financial Ombudsman Service.
- Retail or service disputes where the retailer's internal complaint is unresolved, and both parties agree to use an ADR scheme such as the Dispute Resolution Ombudsman.
- Sector‑regulated services such as communications or energy, where membership of an approved ADR scheme is mandatory and ADR is provided by sector bodies.
Key Takeaways
Dispute resolution services provide structured ways for consumers and traders to resolve mis‑selling disputes without going to court. ADR includes mediation, adjudication and ombudsman schemes that aim to deliver fair outcomes more quickly and at lower cost than litigation. Consumers should start with the trader's internal complaints process, then refer their dispute to the appropriate ADR body if available. Understanding the available dispute resolution services, the steps involved, and the nature of potential outcomes provides consumers with practical pathways to resolve issues with mis‑sold products effectively.
