A New, Low-Cost Pilot Program.

[ by Howard Haykin ]

FINRA launched a pilot program offering pro bono or reduced-fee telephone mediation to parties in simplified cases.  Participation in the pilot program, which began 1/15/13, is voluntary and open to cases involving claims of $50,000 or less.

Linda Fienberg, President of FINRA Dispute Resolution, said:  "Telephone mediation is a lower-cost alternative, and would benefit dispute resolution forum users in many ways. Besides eliminating the travel and preparation costs typically associated with in-person mediation, telephonic mediation offers greater convenience and flexibility, and is a practical alternative for all parties involved."

Mediators would serve on a pro bono basis on cases involving claims of $25,000 or less in damages.  Reduced fees of $50 per hour would be available on mediation cases involving damage claims ranging from $25,000.01 to $50,000.  In addition, FINRA will not charge any administrative fee for these cases.

Parties interested in participating in the pilot can notify FINRA by clicking onto:  www.finra.org/arbitrationmediation/smallclaims.      [ FINRA News Release, 1/16/13 ]