If you feel happier putting your case in person, you should consider using the small claims procedure in the County Court. You have to choose between court and arbitration - you cannot do both. Under the Arbitration Act 1996, a clause in a contract which says that you have to go to arbitration cannot bind you provided the value of your dispute is not greater than the small claims limit. Before going to arbitration or to court you may wish to seek an impartial opinion on the merits of your case. This is best obtained from a solicitor.
Some solicitors work in law centres or advice agencies which offer free advice.
Many solicitors in private practice offer a low-cost initial interview. Your local citizens advice bureau can help you find such a solicitor. The Lord Chancellor's Department Leaflets about the court system You can take action in the courts. This doesn't have to be expensive. You may find it helpful to contact a consumer adviser.