Different Alternative Dispute Resolution Strategies For Debt Collection

When disputes arise between two parties, considering litigation an option is a vague choice these days. Nowadays people are becoming more aware of resolving their matters and started adapting new approaches rather than following the traditional ones where they have to forcefully accept the order of the judge even if they do not find a mutual solution.

Adaptive Dispute Resolution (ADR) is a generic approach to decipher the scenario of disputes among the two parties by observing and considering every factor and reaching a point of settlement with the help of a third party. It acts as a negotiation tool too.
ADR assists in Debt collection when the payment is due or no payment cases. It’s the best way to resolve the issues by not ending up in court.

Different ADR strategies can be used to resolve the issues between parties having disputes. Some approaches are mentioned below.

MEDIATION: One of the most common ways to meet the basic requirements and intentions of both parties is Mediation.
The trained mediator is assigned to both the affected parties who analyze the friction and generate a settlement and these parties accompanied by their legal representatives only.
It is considered as a neutral and prolific approach as the power of taking decisions remains in the hand of both the conflicted parties.
ADJUDICATION: This method has been treated as a part of the UK industry for a long time for resolving disputes. The adjudicator is assigned by the court to both the parties.
In this technique, the adjudicator plays the role of an expert to look into the matter. His decisions are consigned to litigation but most probably accepted by both the parties.
It’s the fastest approach as the adjudicator has to make decisions within 28 days according to the statutory adjudication provision.
ARBITRATION: Here, both the parties tend to choose the third one to conclude the solutions.
There are 3 arbitrators selected where both the affected parties choose their arbitrator as a representative and then those chosen two Arbitrators are assigned to select the third one.
His motive is (selected third one) to find the alternatives and the same ground to resolve conflicts. 
MINI TRIAL: Another method to resolve conflicts of both the parties is Mini- Trail.
It is almost similar to the mediation technique but a more formal approach is taken into account.
Presentations and senior executes are also incorporated in mini trails along with Mediator.


By acknowledging all the approaches, ADR has overcome the traditional procedure.
Less expensive: ADR has put a limit on legal action charges as the cases are being resolved by the third party rather than court. 
Brisk approach: These methods have conquered the traditional court approach. Disputes are being settled in a short period and with less complexity.
Confidential technique: Conflicts are being resolved in a small meeting without publicly disclosing the matter. In this way, parties can also maintain a good relationship.
Control over the decision: Although there is a third party assigned for resolving matters but still the empowerment remains in the hands of both parties. It allows them to understand the claims and actions and find a mutual decision.

Conclusion: The motive of the ADR approach is to resolve the issues related to debt collection such as late or due payment. As the disputes take place among the parties, it is advisable to understand the right way of solving conflicts in a structured manner and considering the Debt Recovery Agency,

Frontline Collections - London Office Debt Collection
2nd Floor, 1-5 Clerkenwell Rd, London EC1M 5PA, UK
0333 043 4425