While lawsuits may be the err example of conflict resolution between individuals and companies, they do have some notable drawbacks. Arbitration is another valuable tool for settling disputes between consumers and companies, an alternative to the often long, costly, and complex process of filing a lawsuit.
Consumer arbitration is the process of settling grievances between an individual consumer and a company that has allegedly caused harm. Consumer arbitration uses an impartial 3rd party known as an arbiter to facilitate negotiation and compromise.
The unique advantage that arbitration has over a traditional lawsuit is accessibility. Retaining an attorney and filing a lawsuit can cost thousands of dollars and take months. By contrast, arbitration can be settled in a matter of hours over the course of a few months. While not necessary, an attorney can still represent the claimant’s interests, and the less formal nature of arbitration allows more flexibility to facilitate results.