Consumers would only have to wait six instead of eight weeks before they can escalate their unresolved telecoms complaints to an alternative dispute resolution scheme, under plans put forward by Ofcom today.
Alternative Dispute Resolution (ADR) schemes are independent bodies that carry out impartial assessments of unresolved complaints between a customer and their communications provider. This process is designed to help ensure fair and effective complaints handling, and empowers consumers in their relationship with their provider.
In November 2023, we launched a review of how effectively the current ADR system is working, including carrying out research among consumers to understand their experiences. While we found that, overall, ADR rules are working well, we consider that targeted changes are needed.
Specifically, we consider that the existing timeframe that consumers have to wait before they can escalate complaints to ADR is no longer working effectively.
Facilitating quicker access to ADR
Under current rules, providers must inform consumers of their right to access ADR if a complaint has not been resolved to their satisfaction after eight weeks or, before then, if the complaint reaches deadlock.
Between January 2022 and 2024, a significant majority (79%) of complaints received by the main providers were resolved in less than a week, with 94% within six weeks.
Among the remaining 700,000 complainants, a relatively small proportion (around 19%) were able to get their issue resolved or were referred to ADR by the end of the current 8-week deadline. This suggests that a material number of consumers were left with their complaint – and any associated harm – unresolved for a further two weeks before being able to access ADR.
To better serve consumers and to help ensure they have prompt access to ADR, we are proposing to reduce the timeframe before consumers can escalate their complaint to ADR from eight down to six weeks.
Re-approval of Communication Ombudsman and CISAS
Ofcom is also proposing to reapprove both Communications Ombudsman (formally known as Ombudsman Services) and the Communications and Internet Services Adjudication Scheme (CISAS), Our review has found they are working well and continue to meet the statutory assessment criteria under the Communications Act.
While not a condition of re-approval, we are recommending that both schemes introduce an improved review process to monitor the quality of decision letters to ensure they remain at a high standard.
Under our proposals, we also propose to adjust some of the schemes’ KPIs to more accurately reflect their performance levels, incentivise continuous improvement and enhance our oversight.
We are inviting feedback on these proposals which must be submitted by 12 March 2025, and expect to publish our final decision in Summer 2025.