Lodging Consumer Complaints
Joyce Cavanagh
Consumer and Family Economics Specialist
Laura Reynolds
Graduate Assistant
Human Environmental Sciences Extension
At one time or another, almost all of us have suffered from a consumer purchase
problem.
- A new car periodically makes a loud engine noise. Even though you have taken
it to the repair shop three times, it still makes the noise.
- A freezer is not cold enough to keep ice cream frozen.
- You ordered a navy blue chair from sample floor models. The chair that is
delivered several weeks later is aqua.
- You have heard nothing from a claim you turned in to your insurance agent
three months ago.
- You order a book from a California firm through the mail for $10.95. The
check is cashed but the book never arrives.
Start at the local level
The first step in resolving a consumer complaint is to contact the person
who sold you the product or service. If that person does not have the authority
to resolve the problem, ask to speak to someone who does have the authority.
Often the manager or assistant manager can handle problems most efficiently
at the local level.
Most problems can be solved at this level simply by communicating the problem
clearly. Explain the problem fully and be firm:
- The freezer you delivered last Tuesday won't keep ice cream frozen.
- I selected a blue chair, yet an aqua chair was delivered. The color is unacceptable.
- A calm, business-like approach tends to accomplish more than angry personal
attacks directed at the individual with whom you are dealing. Have all supporting
material such as sales slips and guarantees available. Suggest an acceptable
solution to the problem:
- I want the freezer repaired or replaced today to avoid having the food
in the freezer spoil.
- The color of the chair is unacceptable. Please pick it up as soon as
possible and refund my money or replace it with one the correct color.
Letters
Some consumers may not feel comfortable communicating the problem in person
to the retailer, or the retailer may be too far away to contact in person. In
such cases, the consumer may be more persuasive and feel more comfortable sending
a carefully constructed letter.
An effective letter of complaint should contain the following information:
- A complete description of the problem, product numbers and date of purchase.
- A description of what happened at the local level if and when a complaint
was made.
- A statement of what action you would consider reasonable to resolve the
problem.
- The action intended if satisfactory redress is not obtained.
- A reasonable deadline for them to respond to your letter (three weeks is
reasonable).
- Instructions on how to contact you with a response.
- Copies of relevant documents (keep originals).
- Indication that copies of the letter are being sent to higher offices in
the company and/or government offices (be sure to keep a copy for your files,
too).
If you send the letter by certified mail with a return receipt requested,
you will be able to prove the company received the letter. If the company receives
the letter, does nothing to solve the problem, and claims no knowledge of it,
this receipt could be helpful in court.
What next?
The majority of consumer problems can be resolved at the local level with
a store visit or letter. However, if communications break down or the problem
is not resolved, you may want to consider continuing to seek satisfaction.
Weigh the cost of your time and energy pursuing the complaint against the
loss resulting from an unsatisfactory product or service. Is it economically
worth pursuing? Or, do you want to pursue the problem out of a sense of public
responsibility to try and improve market practices? If your answer is yes to
either question, there are a number of effective avenues you may want to consider.
Contact the manufacturer
If redress has not been obtained from the retailer, the next step in making
an effective consumer complaint is to inform the manufacturer of your dissatisfaction.
Many companies have established departments of consumer affairs and urge consumers
to contact these departments if they have a problem or complaint. Some departments
are staffed with personnel who are fully trained to handle complaints quickly
and fairly.
However, more effective service can often be found by directly contacting
the president of the company. It is the president's responsibility to ensure
customer satisfaction with the company's products and services, and he or she
is often appreciative of knowing about problems that have arisen.
The president is able to extend more than the usual restitution dictated by
policy, if circumstances warrant such an exception.
You may wish to telephone the company president or consumer representative
(if there is no toll-free number, consider calling collect) to initially explain
the problem. Be sure to find out to whom you are speaking, and if that person
cannot offer you satisfactory redress, ask the name and telephone number of
the person within the company who has that authority. Conduct all your future
dealings with that person.
Media assistance
Many newspapers and radio stations will help with consumer problems. There
are several names for this type of service; many are called "Action Line" or "Call
for Action."
Although these services are so popular that it is virtually impossible for
them to handle every complaint, the settlement rate is generally good.
If you are interested in pursuing this route, contact local newspapers and
radio stations to see if the service is offered.
Copies of all previous correspondence should be sent along with the request
for assistance, which should also include a description of any personal contacts
you had with the seller.
Public remedies
There are a number of government offices in Missouri that may assist in resolving
consumer complaints. When a consumer believes his or her complaint involves
an illegal act on the part of a seller, then a government agency is a highly
appropriate channel for seeking redress after an effort has been made to obtain
satisfaction from the seller, either in person or by mail.
To act upon the complaint, the agency will need copies of all your previous
correspondence with both the local retailer and the manufacturer.
The state agencies also may have their own forms that will need to be completed.
You might also check with your local city or county attorney or prosecutor,
Chamber of Commerce, or Better Business Bureaus. In some areas they will be
of assistance in settling consumer complaints.
State agencies
- Office of the Attorney General
The Office of the Attorney General handles complaints involving fraud, misrepresentation
and deception in the sale or advertisement of goods or services. Also, it
distributes information on such things as small claims court, auto repair
and credit. Consumers who want to file a consumer complaint can fill out a
complaint form or call the Consumer Protection Hotline at 800-392-8222.
- Consumer Protection Division
P.O. Box 899
Jefferson City, MO 65102.
1700 Jefferson Street
Jefferson City, MO 65109
573-751-3321
800-392-8222
Other Missouri agencies that assist in consumer complaints not involving fraud:
- Missouri Department of
Insurance
For complaints against insurance companies, agents and/or brokers.
Missouri Department of Insurance
Truman Office Building
Room 830, P.O. Box 690
Jefferson City, MO 65102
800-726-7390]
- Missouri Division of
Professional Registration
For complaints against licensed professionals.
Missouri Division of Professional Registration
3605 Missouri Blvd.
Suite 380
Jefferson City, MO 65102
573-751-0293
- Missouri Public Service Commission (PSC)
Regulates all privately owned utilities in the state, including gas, electric,
water, sewer and telephone. Does not regulate municipal utilities, propane
or electrical cooperatives.
Missouri Public Service Commission
Governor Office Building
200 Madison Street
P.O. Box 360
Jefferson City, MO 65102
573-751-3234 (Consumer Services Department)
800-392-4211
- Missouri Public Service Commission
Handles complaints on mobile homes manufactured after January 1974, and oversees
construction standards for mobile homes.
Missouri Public Service Commission
Manufactured Housing and Modular Unit Program
P.O. Box 360
Jefferson City, MO 65102
800-819-3180
- Missouri Division
of Finance
Regulates state banks, state savings and loan associations and small loan companies.
Enforces Missouri's usury laws. Handles complaints about collection agencies,
credit bureaus, mortgage bankers/brokers.
Missouri Division of Finance
Harry S. Truman Building
Room 630
301 W. High Street
P.O. Box 716
Jefferson City, MO 65101
573-751-3242
- Missouri Department of
Economic Development
Regulates state credit unions.
Missouri Department of Economic Development
Division of Credit Unions
2410-A Hyde Park Road
Jefferson City, MO 65102
573-751-3419
- Missouri Commission on
Human Rights
Handles complaints concerning discrimination.
Missouri Commission on Human Rights
3315 West Truman Boulevard
P.O. Box
1129 Jefferson City, MO 65102-1129
573-751-3325
- Office of the Lieutenant
Governor
Office of the Lieutenant Governor serves in the capacity of state ombudsman
directing consumers to the appropriate agency when they have complaints.
Office of the Lieutenant Governor
State Capitol Building
Room 121
Jefferson City, MO 65101
573-751-4727
- Secretary of State
Secretary of State
State Information Center
600 West Main Street
Jefferson, MO 65101
Securities and Investments
Handles complaints and inquiries concerning stockbrokers, broker-dealers and
investors.
800-721-7996
General Inquiries
Provides information on registration of corporations, fictitious names and
benevolent organizations.
573-751-4153.
Federal agencies
- Federal Trade Commission
Notify if encountering deceptive trade practices.
Federal Trade Commission
Midwest Region
55 E. Monroe Street
Suite 1860
Chicago, IL 60603-5701
877-FTC- HELP (877-382-4357)
- Food and Drug Administration
Notify if encountering problems with impure or unsafe foods, drugs or cosmetics,
or questionable therapeutic devices.
Food and Drug Administration
12 Sunnen Drive
Suite 122
St. Louis, MO 63143
314-645-1167
Food and Drug Administration
11630 W. 80th Street
Lenexa, KS 66214
913-752-2121
- Consumer Product Safety Commission
Notify if encountering problems with dangerous or unsafe products.
U. S. Consumer Product Safety Commission
Central Regional Center
2305 Dearborn Street
Room 2944
Chicago, IL 60604-1601
312-353-8260
800-638-CPSC
- Federal Consumer Information
Centers
The federal government has established federal information centers across the
nation. You can call to ask questions about any federal program or agency.
The federal consumer information centers can help you determine which federal
agency has jurisdiction in specific areas.
800-688-9889.
Other remedies
- Small claims court
The purpose of the Small Claims Court is to resolve disputes quickly, informally,
and with little cost. You are limited to recovering $3,000 plus court costs
and interest in Small Claims Court. For a small filing fee ($5 to $10), and
a fee for serving papers to the defendant, the case is heard before a judge
who will usually give an immediate judgment. It is not necessary to have an
attorney present. For more details, contact the local circuit clerk.
- Other legal redress
For the consumer with a complaint, the threat of lawsuit is all advantage,
whereas an actual lawsuit tends to be all disadvantage.
One may file a civil suit against the retailer or manufacturer. Most consumers
will find the cost to be a barrier. In consumer damage cases, generally the
consumer pays for his or her own legal costs if he or she wins, and for both
his or her own and the seller's costs if he or she loses.
- Better Business Bureau
The Better Business Bureau (BBB), supported by local business establishments,
may also help with a complaint matter if no satisfaction has been obtained
by the consumer at the local level. Complaints are processed by the BBB in
the area of the country where a complaint is filed. In order for your complaint
to be filed with the BBB officially, you must fill out a complaint form. The
BBB system processes nearly 500,000 complaints each year. They are unable to
process complaints submitted via e-mail or telephone.
You may call for information concerning the reputation of a particular business.
There are three BBBs in Missouri. The one located nearest the seller should
be contacted.
- Industry associations
The past few years have seen a number of industry-sponsored associations with
complaint-handling functions. The range of effectiveness varies from merely
forwarding a complaint to the offending company to actually arbitrating an
agreement between the company and the buyer. The associations will generally
only accept those complaints consumers have first tried to resolve at the
local level.
Consult your local library's reference section for names and addresses of these
associations.
- Legislative protections
A number of federal consumer protection laws may help the consumer
who is withholding payment. The following is a brief description of some of
the rights and protections these laws afford.
- Fair credit reporting
If the consumer withholds payment causing an unfavorable report to
be entered into the individual's credit rating file, a statement by the consumer
explaining the circumstances regarding the withheld payment can also be entered
into the file. If a credit card company has made a billing error, the consumer
may withhold payment for the amount in dispute while the error is investigated.
- Fair debt collection practices
This law regulates the types of activities in which a debt collection
agency may engage, severely limiting the harassment techniques that might be
used against consumers.
- Defense against third-party creditors (Repeal of "Holder in
Due Course" Doctrine)
If a consumer has a complaint against a retailer who has sold the
installment credit contract to a third party (such as a bank), the consumer
may withhold payment to the third party while the complaint is investigated.
- Warranty protection
If a seller refuses to honor a product warranty, the consumer may
be protected against a suit for withholding payment while the complaint is
investigated.
- Unordered merchandise
If a consumer receives unordered merchandise through the mail it
is considered a gift and payment does not have to be made.
References
- 2001 Consumer Action Handbook, Federal Consumer Information Center, Washington
D.C., 2000
- Garmen, E.T., Consumer Economic Issues in America, Dame Publications, Inc.,
Houston, TX, 1997
GH3101, revised August 2002
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