The ABTA Arbitration Scheme is a legally-recognised alternative to going to court. An independent arbitrator, appointed by CEDR Solve, will base his or her decision on the documents forwarded. Neither party will attend the arbitration.
If a claim is brought via the County Court, both sides will have to attend court (normally the County Court closest to the customer). Any outcome will be made based upon the arguments put forward by each side.
The amount a customer can claim and the costs involved differ between ABTA’s Arbitration Scheme and the County Court. The amounts are shown below:
Arbitration
The arbitration fees you and your customer pay to start the claim depend on the amount the customer is claiming. The total of the two fees covers the administration costs of CEDR Solve and the arbitrator's fee.
|
Amount of Claim |
Up to £2,999.99 |
£3,000-£7,499.99 |
£7,500-£25,000 |
|
Costs (incl VAT) |
|
|
|
|
Customer pays: |
£108 |
£180 |
£264 |
|
Member pays: |
£252 |
£180 |
£96 |
|
Total to CEDR Solve: |
£360 |
£360 |
£360 |
The rules of ABTA’s Arbitration Scheme empower the arbitrator to decide what happens with costs once the decision has been reached. Costs usually follow the event. This means that the loser pays the winner’s costs. But costs are limited under the scheme as described below.
If your customer is awarded more compensation than was previously offered by you, the travel company, in an attempt to settle (you may have offered nothing), your customer will receive costs equivalent to their original arbitration fee as well.
If your customer is awarded less compensation than was offered, (or gets no compensation at all), they will have to pay you, the travel company, a fee that is equivalent to their original arbitration fee.
County Court
The fee your customer pays to start the claim depends on the amount they are claiming. Current fees and information can be downloaded from the Courts Service website.
ABTA cannot advise your customer which option to choose (ABTA’s Arbitration Scheme or County Court), or how much they should claim; this is the customer’s decision. Arbitration may well be the appropriate choice for your customer if: they're unable to take time off work or do not want to attend court; if they are able to express themselves clearly in writing; and if they want to pursue a claim for reasonable compensation and wish to keep the cost of proceedings to a minimum.
ABTA’s Arbitration Scheme is wholly independent. ABTA purely advises on courses of action available to resolve a dispute. Once the claim form and defence has been sent to the independent arbitrator, ABTA is no longer involved with the case and has no influence on the outcome.
Remember, your customer must first register their complaint with ABTA's Consumer Affairs department (enclosing copies of the correspondence that has passed between you and them) before making an application. Sending your customer an application form does not imply that ABTA considers your customer to have a case or that their claim will be successful. The independent arbitrator makes this decision, based upon the documents supplied. We're merely providing your customer with an alternative means of resolving their dispute with you.
When your customer receives a claim form from ABTA they should complete and return it as soon as possible. Once we receive the completed form, we will contact you to submit your defence. The case should then take approximately two months to conclude.
Any award made by the arbitrator is final and binding on both parties. This means that if your customer loses their case, they can't then take the matter to the courts. Similarly if your customer first went to court and lost, they can’ make a subsequent claim through ABTA’s Arbitration Scheme. Nevertheless, both you and your customer can appeal against the arbitrator's decision using the ABTA Arbitration Scheme Appeals Procedure or via the High Court.
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