Motor Ombudsman seeks mandatory dispute process by 2036

The Motor Ombudsman, celebrating its ten-year anniversary, announced a plan to have its code of practice and dispute-resolution process legally required for car dealers and workshops by 2036. Mandatory adoption would standardise how consumer complaints are settled and could reduce legal costs for the trade.

Key takeaways

• The Motor Ombudsman marks its tenth anniversary.
• It aims for its code and dispute-resolution to become compulsory by 2036.
• Mandatory rules would standardise complaint handling for dealers and workshops.
• The change could lower legal costs and improve consumer confidence.

Background of the Motor Ombudsman

Founded in 2016, the Motor Ombudsman provides an independent complaints handling service for the motor industry. It sets a voluntary code of practice that covers customer service standards, pricing transparency and after‑sales support.

Over the past decade the body has dealt with thousands of consumer disputes, building a reputation for impartiality and fast resolution.

Proposed mandatory code and dispute process

The organisation now seeks statutory backing for its code, meaning all registered dealers and workshops would have to follow the same consumer‑facing standards. The dispute-resolution mechanism would become a required step before any court action.

Key elements include clear timelines for response, transparent pricing information and a defined escalation route for unresolved issues.

Timeline and next steps

The Motor Ombudsman has set a ten-year horizon, targeting legislation to be in place by 2036. It will consult with trade bodies, consumer groups and government departments throughout the period.

Interim milestones include publishing detailed guidance, pilot testing the mandatory process with a sample of businesses and preparing training resources.

Potential impact on the motor trade

Compulsory adoption would create a uniform framework for handling complaints, reducing the need for costly legal defence. Dealers could benefit from clearer expectations and improved consumer trust.

Standardised procedures may also reduce the number of complaints that reach tribunals, easing pressure on the judicial system.

What this means for dealers

Dealers should begin reviewing their current complaint handling policies against the proposed code. Early alignment can minimise disruption when the mandatory regime is introduced.

Investing in staff training and adopting the Ombudsman's best‑practice tools now could provide a competitive edge and lower future compliance costs.

Frequently asked questions

When is the code expected to become mandatory?

The Motor Ombudsman aims to have its code and dispute-resolution process legally required for dealers and workshops by 2036, following a decade of consultation and gradual rollout.

How will the mandatory dispute process work?

Under the proposed system, any consumer complaint would first be addressed through the Ombudsman's prescribed timeline and escalation steps. Only if the issue remains unresolved could parties proceed to court.

What benefits could dealers see from the change?

Standardised complaint handling can lower legal expenses, improve customer satisfaction and enhance the dealer’s reputation. Aligning early may also give a head start in meeting the future regulatory requirements.