Arbitration is an alternative form of dispute resolution used in place of court litigation to settle legal disputes between parties.
- An independent third party, usually an experienced legal practitioner, is appointed to resolve the dispute
- Both parties provide their evidence to the third party, usually in the form of written submissions with attached documentation as proof
- The third party then makes a decision which is legally binding on both parties, which is the “Arbitration Award”
We use arbitration, as it ensures that the dispute is resolved in an affordable, fair and impartial way, whilst protecting any rights that you may have under applicable consumer protection legislation.
Where arbitration takes place:
The process can be conducted wherever you are in the world. An email will be used to communicate, and video-link will be used to attend hearings remotely.
Because a third party is appointed to resolve the dispute, this provides greater certainty of the costs associated with the process.
Please note: should Prodigy Finance be successful in a claim against you, we reserve the right to claim the arbitration costs, as well as our legal fees and costs 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 firstname.lastname@example.org to request the dispute be referred to the CIArb. This must be requested before we start any arbitration proceedings against you in the LCIA.
- 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 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.