Arbitration is an alternative form of dispute resolution used in lieu of court litigation to settle legal disputes between parties.
The process:
- An independent third party, usually an experienced legal practitioner, is appointed to resolve the dispute.
- Both parties provide their version of events to the third party (the “arbitrator”), usually in the form of written submissions with attached documentation as supporting evidence.
- The arbitrator then makes a decision that is legally binding on both parties, which is known as the arbitration award or “Final Award”.
- Should a party not comply with their obligations as set out in the Final Award, the other party can approach a court to have the Final Award formally confirmed and made an order of the court.
We use arbitration because it ensures that the dispute is resolved in an affordable, fair, efficient and impartial way, whilst protecting any rights that you may have under applicable consumer protection legislation.
Where arbitration takes place:
The arbitration will have its seat in London; however, the actual process is conducted remotely via email exchange between the parties and video link (Zoom or MS Teams). This means that you can participate in the arbitral proceedings from wherever you are in the world.
Arbitration cost:
Should Prodigy Finance be successful in a claim against you, we reserve the right to claim the arbitration costs, as well as any other fees incurred during the arbitral process, from you.
Arbitration and your loan agreement:
Depending on when your loan was signed, the dispute will either be referred to the Chartered Institute of Arbitrators ("CIArb") or the London Court of International Arbitration ("LCIA"). Your loan agreement, as amended, will confirm which arbitration forum applies to your loan.
If your loan agreement refers to the LCIA, you do have the option to refer the dispute to the CIArb, which is more cost-effective for both parties. For the matter to be referred to the CIArb, either:
- You may email payments@prodigyfinance.com to request the dispute be referred to the CIArb. This must be requested before we start any arbitration proceedings against you in the LCIA.
Or:
- We will contact you before we begin the arbitration proceedings with the LCIA to receive your consent to the CIArb resolving your matter.
If you don’t choose your dispute to be referred to the CIArb, then it must be resolved by the LCIA, which could be more costly for you.
The arbitration process will not prevent you from enforcing your rights under the Consumer Credit Act 1974 in court, or prevent you from referring any complaint you may have to the Financial Ombudsman Service.