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Mediation is a way of solving disputes about money or debt without going to court. In mediation, someone from a mediation service helps two sides find a solution. Find out how mediation works in debt disputes.
Mediation can be quicker and cheaper than going to court
Mediation is an option you need to think about before going to court. It can be better than going to court because it is usually:
You’ll get the chance to informally discuss the problem with the other side and reach an agreement you and the other side are happy with.
Watch a video on how mediation can help you solve a dispute
You can ask for mediation to take place if you're trying to recover money or if you are threatened with legal action.
Any side in a dispute can suggest using mediation, but for it to go ahead both sides need to agree to it.
Using mediation will give you a chance to informally discuss the issue and reach an agreement that you’re both happy with. If you reach an agreement, you can get this written up and signed.
The mediator can’t force anyone to do anything, but both sides are likely to stick to any agreement they have freely signed up to.
You will have a wider range of options than a judge in the courtroom. You could agree to repay or reclaim part of the sum, settle on a repayment plan, or ask for compensation or an apology.
The mediation is arranged by a person called a ‘mediator’. They do not take sides in the dispute or offer a solution.
The mediator will:
If the other side agrees to mediation, the mediator will arrange a meeting with you and the person or organisation you’re in a dispute with. The mediator can act as a go-between, and go back and forth with messages, if you don’t want to meet the other side. Mediation can take from one hour to up to four hours.
You can find a mediation service in your area by using the 'find a civil mediation provider' tool, using the link below.
There are fees for using a mediation service, but should be cheaper than going to court in person or hiring a lawyer.
Fees start at £50 plus VAT for one hour of mediation in a dispute worth less than £5,000. Disputes over larger sums of money will cost more and may take longer to solve.
The cost of mediation is usually shared equally between the parties and it is normally paid before the mediation takes place.
The LawWorks charity can provide free mediation if you can’t afford to pay and don’t have any other ways of paying. See the link to ‘LawWorks mediation’, below, to find out how to apply.
If someone makes a court claim for £5,000 or less, and the case is defended, the courts provide a mediation service. The service is known as the small claims mediation service.
Courts provide the service at no extra cost. The cost is covered by the court fees paid as part of making a claim.
If mediation doesn’t work, isn’t suitable, or if the other side doesn’t agree to it, the case can still go to court.
You can find out what happens when you make a court claim, or how to defend a claim made against you, using the links below.