Starting October 1, consumers facing disputes with businesses will have an additional option for resolution through a new service established by the Consumers Association of Singapore (Case) and the Law Society of Singapore. This service, which provides a “non-binding neutral evaluation,” aims to assist consumers who cannot reach a settlement via Case’s mediation centre.

Under this arrangement, a lawyer appointed by the Law Society will assess the case, providing an objective evaluation. If both parties agree with the assessment, they will sign a settlement agreement. This new option is particularly significant as it will extend to contracts that fall outside the jurisdiction of the Small Claims Tribunals (SCT).

The SCT currently handles claims up to S$20,000, including disputes related to residential tenancy agreements lasting up to two years, with a potential increase to S$30,000 if both parties consent.

Case president Melvin Yong highlighted that the new initiative will expand the existing suite of affordable dispute resolution avenues available to consumers. Currently, Case’s mediation centre manages around 130 disputes annually, with nearly 80% of cases successfully reaching a mutually agreed resolution.

The costs for mediation sessions vary, with members of Case paying between S$16.35 and S$354.25, while non-members face fees ranging from S$38.15 to S$436, excluding the real estate sector.

Yong emphasized that this new option will provide parties with increased options, flexibility, and autonomy, reducing the need for court proceedings. “Previously, if consumers and businesses could not settle during mediation, they would have to take legal action. But now they can receive a reality check on the strength of their case through neutral evaluation,” he stated.

Law Society president Lisa Sam expressed confidence that this service will be beneficial to the community, having successfully employed similar processes for resolving disputes between consumers and financial institutions. She remarked, “With neutral evaluation, consumers and businesses can make better decisions and resolve their disputes efficiently and fairly.”