Millions of pounds could be saved on council staff time and legal fees in Croydon, claims a not-for-profit organisation.

Centre for Justice, which acts as an arbiter in civil disputes such as insurance claims, neighbourhood disputes and employment issues, is sending questionnaires to every Croydon Councillor in the next fortnight and has already met with its legal department.

The company, based in the City, was founded by Anthony Hurndall, a solicitor with more than 25 years experience in property law.

He said: "Because of the price of lawyers and the time the courts take seeking legal action for all but the very rich is simply not possible.

We work to settle disputes out of court in a fraction of the time for a fraction of the cost."

He explained Centre for Justice appoints an arbiter from a database of lawyers who listen and investigate both sides’ claims before making a judgement.

The award is then pursued through the courts by the lawyer, should payment not be forthcoming.

Mr Hurndall said: "The legal system set up is adversarial, claimants are encouraged to essentially fight it out. We want to encourage people to talk and reach a solution that pleases both sides."

The group is already working with Havering Council, East London, and in negotiations with Westminster and Camden.

Mr Hurndall believes his company could save the council millions.

He said: "Hundreds of hours are wasted by council workers having to go back and forth in disputes that are never resolved. We estimate at least five to ten per cent of public revenue is lost in conflicts and disputes."

Croydon Council confirmed negotiations had taken place but nothing had been agreed.