Tag: Online Dispute Resolution

The ideology behind incorporating Alternative Dispute Resolution (ADR) into the legal mainstream is twofold. First, it aims to provide speedy redressal for various legal issues that arise between parties. Second, it seeks to prevent courts from becoming overburdened with such cases. However, a fundamental pillar of ADR is the mutual consent of both parties; if this consent is vitiated, the structure of ADR is compromised.

Lenders are increasingly including clauses in loan agreements that mandate Online Dispute Resolution (ODR) for any disputes arising between them and the borrower. While ODR offers a faster and potentially cheaper alternative to traditional court cases, these clauses often come with a twist: the option of a sole arbitrator chosen by the lender. This raises concerns about fairness and transparency in dispute resolution for borrowers.