Legal Ombudsman to consult on becoming ADR provider

The Legal Ombudsman (LeO) has launched a consultation into proposed changes that will allow it become an alternative dispute resolution (ADR) provider.

LeO, however, does not currently comply with the regulations that apply to ADR entities, and would need to make changes to its scheme rules in order to do so.

Registration requires changes to the ombudsman's existing complaints scheme rules. This would require extending the time limit for complaints and limiting the number of grounds on which it can refuse to deal with a complaint.

An earlier application for certification by the Legal Services Board (LSB) was withdrawn last week after the Office for Legal Complaints (OLC) made the decision that a fuller consultation should take place before it decided how to proceed.

Interim chief ombudsman, Kathryn King, commented: 'The OLC believes it would be in the interests of both the legal and claims management sectors and consumers that we become an ADR entity. However, it is keen to consider all views before reaching a decision about this.'

The ombudsman is also hosting a consultation event for stakeholders to discuss its proposals face to face. The OLC will then consider responses received at its December board meeting, with a decision to be announced shortly after.

EU legislation requires all businesses to signpost consumers to an alternative route to obtaining redress if they are not happy with services or goods they have purchased.

The consultation will run for eight weeks, until 2 November.