Automotive Arbitration (NCDS)

National Center For Dispute Settlement

According to the Federal Magnuson-Moss Warranty Act and various State Lemon Law Statues, every automotive manufacturer – every manufacturer of any major product, for that matter – should provide some means of arbitration/resolution for their customers. Many of the manufacturers use the Better Business Bureau for this function. In the mid-1990′s, the National Center for Dispute Settlement (NCDS) convinced Chrysler Corporation to change from their previous “in-house” Arbitration Board to the NCDS process of product dispute settlement (mediation and arbitration). It worked out so well that soon Toyota, Lexus, Mitsubishi, Porsche and others came on board.

The process works through their expert training of independent arbitrators from around the country. Once trained, NCDS may contact an arbitrator whenever someone submits a request for arbitration in a particular region. NCDS will notify the arbitrator for acceptance and a list of available dates in order to conduct an arbitration hearing – usually at the customer’s selling or servicing dealership. After they contact the manufacturer and customer, the date and location are set and all necessary documentation is sent to the arbitrator. Most hearings will usually take about 45 minutes to an hour-and-a-half or two hours depending on the complexity of the case, road testing, etc. After hearing all the evidence, the arbitrator usually has five days to submit a written decision to repair, replace or repurchase the customer’s vehicle based upon an identified defect that would significantly impair the use, value or safety of that vehicle. Payment is $100 per case, minus a fee of $3.00 that goes toward a “Professional Liability Defense Fund.” If travel or associated meals, lodging, parking, tolls, or anything else is required, the arbitrator is reimbursed on the normal and customary receipts that are submitted. All this and more is covered in much detail at a required training prior to becoming an automotive warranty arbitrator. All expenses for the training in Dallas, TX are completely paid for, by the way, including mileage, airport parking and any meals in transit (with receipts). You must commit to attend the training in order to arbitrate cases. Update training is also usually held every two years or whenever deemed necessary.

From time to time, NCDS actively recruits potential arbitrators in specific locations around the country. If you think you might be interested in this very part-time and important work, please provide me with ALL of your contact information. You cannot be currently employed by ANY of the automotive manufacturers or their dealership franchises, and be located within a specific region where NCDS determines that there is a need. You do NOT need to have any type of automotive background in order to perform these services. Arbitration is primarily a business meeting with NO legal representation or technical knowledge necessary. ASE-certified Technical Inspectors are also requested whenever the need arises. The training will provide you with everything you need to know. Thank you for your interest in this much needed component of the automotive industry!

Watch this website for current locations where arbitrators might be needed,as well as upcoming new arbitrator training classes.

Automotive Service Consultants, LLC has been conducting automotive warranty arbitrations since 1997. Email us at asc93@msn.com