Disputes between the public and credit companies have, until now, generally had to be settled in court.
This is all about to change. The Department for Trade and Industry (DTI) has announced plans to launch a new "Alternative Dispute Resolution" service. The consultation period where credit companies and others involved in finance have the chance to comment and make suggestions has started.
Our view
In simple terms insurance, banking and financial services industries have independent ombudsmen to rule on cases, the credit industry does not have one. This change is great for the public.
Instead of credit companies being able to do as they wish or use their financial muscle in court, a new arbitrator means that there is an independent source to make a judgement before becoming involved in costly legal battles.