New option by Case and Law Society to resolve consumer-business disputes from Oct 1

Source: The Straits Times
Author: Kolette Lim

SINGAPORE - Consumers involved in disputes with businesses will soon have another avenue to resolve them.

From Oct 1, those who are unable to reach a settlement through the Consumers Association of Singapore's (Case) mediation centre can opt for a "non-binding neutral evaluation", said the consumer watchdog and the Law Society of Singapore on June 10.

A lawyer appointed by the Law Society will assess the case. Parties that accept the assessment will sign a settlement agreement.

This service, a collaboration between Case and the Law Society, will also be offered for contracts that fall outside the jurisdiction of the Small Claims Tribunals (SCT).

The SCT, which is part of the State Courts, is the avenue to resolve claims of up to $20,000, including disputes arising from residential tenancy agreements of up to two years. The claim limit can be raised to $30,000 if both parties agree.

The new option will enhance Case's existing suite of affordable avenues to resolve disputes between consumers and businesses, Case said. Its mediation centre handles about 130 disputes annually, close to 80 per cent of which are resolved with parties reaching a mutually agreed settlement.

From Case's website, a two-hour mediation session via the consumer watchdog would cost from $16.35 to $354.25 for its members, and between $38.15 and $436 for non-members, for all industries except for real estate.

Case president Melvin Yong said he hopes the new option will provide parties with "more options, flexibility and autonomy" in resolving disputes without having to go to court.

"Previously, if consumers and businesses cannot settle during mediation, they would have to take legal action. But they can now have a reality check on the strength of their case through neutral evaluation," he said.

Law Society president Lisa Sam said she is confident the new service will help the community, as it has successfully used this process to resolve consumer disputes with banks and insurance companies.

"With neutral evaluation, consumers and businesses can make better decisions and resolve their disputes efficiently and fairly."