The digital service allows people owed sums of up to £10,000 to resolve their dispute completely online. This means claims can be issued, responded to and settled without the need for third-party involvement.

The service aims to make it simpler and quicker for people to submit a claim, by allowing them to do so from their own home and removing complex legal language from the online application. Most people take less than 15 minutes to complete the initial claim form.

Almost nine in 10 people using the service have been satisfied or very satisfied with it, with claims now being issued in minutes, not days. This makes it easier to resolve disputes and hands power back to consumers, which should help to drive more honest behaviour amongst traders and result in fewer people losing money.

Chris Philp MP, justice minister, said: “Submitting a civil money claim online is allowing thousands of people up and down the country to claim the money they are owed quicker and more easily.

“This is just one way this government is using technology to ensure our world-renowned justice system remains fit for the 21st century and increases access to justice for all that use it.”

Ola Osenie, 45, from North London, is one of those to benefit from the online service.

He said: “The business claimed they weren’t happy with my services, which I knew wasn’t true; they’d already provided positive feedback saying how pleased they’d been.

“I’d tried to resolve the situation myself, by trying to set up meetings, sending letters, emails, leaving voicemails and sending text messages, but it hadn’t worked.

“Making a claim online took about 10 to 15 minutes. It was very easy to follow and easy to use and designed in an intuitive way. It’s a great service and very simple to use. I’d definitely recommend it to others who are owed money.”

Online civil money claims is part of HM Courts and Tribunals Service’s £1bn reform programme designed to modernise courts and tribunals, making them swifter, simpler and easier to access for everyone. People can now apply for uncontested divorce and probate online, and make pleas for low-level offences.