In exceptional cases in which the conciliator's advice is not acceptable, either side has the right to ask for the matter to be referred to the independent arbitration service. Neither side is required to refer the dispute to independent arbitration, and may choose to deal with the matter in other ways, including taking legal action. However, if the consumer requests that the matter be referred for arbitration, the member must accede to the request.

The scheme administrator has appointed IDRS Ltd. (IDRS) to run the arbitration service on its behalf. Once a consumer applies for arbitration in line with the rules set out here, IDRS will appoint an arbitrator from the panel it maintains for the purpose. The arbitration will be conducted under the Arbitration Act 1996. The arbitration process will work as follows:

1. before applying for arbitration a consumer must have attempted to resolve the complaint, directly with the member, with REAL and, if appropriate, through the conciliation service  (as described in section 9.2, above);
2. before applying for arbitration the consumer must have REAL’s agreement to do so;
3. the consumer must complete the application form available here and return it to IDRS with a payment of £100 + VAT;  (this fee will be refunded to the consumer if the independent arbitrator finds in his or her favour, or recommends it to be refunded);
4. the member must accede to a consumer’s request for arbitration, and will also be required to make a payment of £100 + VAT. 

An award made under the independent arbitration service will  be final and binding on both the consumer and the member. They may only challenge it only on certain limited grounds under the Arbitration Act 1996. If the arbitrator makes a decision in favour of the consumer, the member must refund the fee in addition to any award that may be made.