What Is External Dispute Resolution?
External dispute resolution (EDR) is a free, independent way to resolve a complaint when you and a business cannot agree.
In this answer
- Define external dispute resolution in plain English
- Explain when and why a customer would use it
- Describe how it complements internal complaints handling
- Outline the kinds of schemes that operate in Australia
- Reassure customers that EDR is free and impartial
5 min
What EDR is
External dispute resolution is an independent service that helps resolve complaints between customers and businesses when they cannot reach agreement directly. It is generally free for customers, impartial, and designed to be far simpler than going to court.
An EDR scheme looks at the facts, considers what is fair in the circumstances, and works towards an outcome. It is a safety net that gives customers confidence their concerns can be heard by someone independent.
When you would use it
EDR usually comes after you have raised a complaint directly with the business and given it a chance to respond. If you are still unhappy with the answer, or the business does not respond within a reasonable time, you can take the matter to the relevant external scheme.
The idea is escalation, not duplication: most concerns are resolved directly, and EDR exists for the minority that are not.
How schemes work
Australia has independent ombudsman-style schemes that handle complaints in particular sectors, including financial services. They are typically free to customers, can consider what is fair as well as what is strictly owed, and aim to reach practical outcomes without formality.
Which scheme applies depends on the business and the nature of the complaint. If you are unsure, the business should tell you which scheme covers it, and you can also ask us through our help centre.
Why it matters
EDR keeps businesses accountable and gives customers a fair, low-cost path to resolution. Merion supports the process: if you are dissatisfied with how we handle something, we will tell you about your escalation options rather than leave you guessing.
You can read more about complaints in our complaints guide.
This page is general information only and is not legal advice.
Key takeaways
- EDR is a free, independent way to resolve complaints
- It usually follows raising a complaint directly with the business first
- Schemes consider what is fair, not only what is strictly owed
- The right scheme depends on the business and the issue
- Merion will explain your escalation options openly
Frequently asked questions
Does external dispute resolution cost me anything?
EDR is generally free for customers. It is designed to be an accessible alternative to court.
Do I have to complain to the business first?
Usually yes. EDR is an escalation step for when a complaint cannot be resolved directly within a reasonable time.
How do I find the right scheme?
The business should tell you which scheme covers it. You can also ask us, and we will point you in the right direction.
Fair, professional, compliant — always
Merion handles every account on the facts, with respect, and within the rules. Questions? We're happy to help.