Avoid Disputes, Not Complaints

Presented by: Stuart Ayres and Derek Pullen

Stuart Ayres, Scheme Manager

Derek Pullen, Scheme Adjudicator

Avoid Disputes, Not Complaints

“Customers can not only talk back, they can look into the very workings of your business and decide if you conduct yourself in a way they approve of.

In this world, your reputation will be the sum total of all your conduct and interactions, which will now be so much more measurable by outsiders”

Tom Friedman, “The World is Flat”

Never Had One, Never Will

Be prepared, be pro-active

Must have an internal complaints system

Consumer awareness

Benefit to consumers and to financial service providers

From bottom drawer to business tool

Reputation and referrals

Environment of trust and open exchange

New business

What is a Complaint?

Any indication that a service or product does

not meet a customer’s expectations

What is a Complaint?

Feedback

Overview

Developing a good Internal Complaints Process (ICP)

The FDR Dispute Resolution Process

Complaint Handling

Complaints are Gifts

Root Cause Analysis

Q and A

Developing a good ICP

Guiding Principles (ISO 10002) Visibility Accessibility Responsiveness Objectivity Free Confidentiality Customer focused approach Accountability Continual improvement

Developing a good ICP – Alternative Dispute Resolution

Developing a good ICP – The Framework

Commitment of top management and personnel

Policy Customer focused – obtain input from customers, personnel and interested

parties Known by all personnel Available to customers and interested parties Consider regulatory and operational requirements Align quality and complaints policy

Developing a good ICP – The Framework

Responsibility and Authority

Top Management

Complaints Handling Representative

Managers

Personnel in contact with customers and complainants

Communication

Developing a good ICP – The Framework

Responsibility and Authority – Top Management Ensuring establishment, planning, designing, implementation Maintenance and continuous improvement of I C P and its objectives Identifying and allocating management resources and representatives

Ensure promotion of I C P and customer focus Periodically review I C P to ensure effective, efficient and continuously

improved Make information about the I C P is easily accessible to all Develop a process for escalating significant complaints to senior

management

Developing a good ICP – The Framework

• Responsibility and Authority – Complaints Representative

Complaints Handling Representative (senior person, marketing?)

• Establish the process for performance monitoring, evaluation and reporting

• Reporting to top management on I C P, with recommendations for improvement

• Maintaining effective and efficient operation of I C P, including personnel

• I T, documentation, deadlines and process reviews

Developing a good ICP – The Framework

• Responsibility and Authority – Managers• Implementation

• Liaising with ICP representative

• Promotion of awareness of I C P and customer focus

• Information on I C P is accessible

• Reporting on actions and decisions

• Ensure monitoring of I C P undertaken and recorded

• Ensure action taken to correct problem, prevent in future and recorded

• Ensure data available for review

Developing a good ICP – The Framework

• Responsibility and Authority – Personnel All personnel in contact with customers and complainants;

• Trained in complaints handling

• Comply with I C P requirements

• Treat customers courteously and promptly respond to complaints

• Show good interpersonal and communication skills

• Aware of their roles, responsibilities and authorities re. complaints

• Aware of procedures to follow and information to give complainants

• Report complaints of significance

Developing a good ICP - Operation

• Communication

•Information readily available, clear language and formats

•Disclosure document, brochures, website, email

•Where and how complaints can be made

•Information to be provided regarding the dispute process;

­Time periods of various stages

­Options for remedy

­Avenues for feedback on the complaint

Developing a good ICP - Operation

1. Receipt

2. Tracking

3. Acknowledgement

4. Initial Assessment

5. Investigation

6. Response – Decision and deadlock notices

Developing a good ICP - Operation

1. Receipt

• Record with supporting information and unique I D code

• Identify remedy sought by complainant

• Identify products / practices complained about

• Due date for response

• Data on people etc

• Immediate action taken

Developing a good ICP - Operation

2. Tracking

• Complaint should be tracked throughout entire process until complainant satisfied or decision made

• Up-to-date status made available to complainant on request and at regular intervals

Developing a good ICP - Operation

3. Acknowledgement Receipt acknowledged immediately (post, phone or email) Certainly within 2 working days

4. Initial assessment For severity, safety implications, complexity, impact and need for possible

immediate action

5. Investigation Reasonable effort made to investigate all relevant circumstances and

information Level commensurate with seriousness, frequency and severity

Developing a good ICP - Operation

Response – Decision Notice

P I Insurer - notify

Following investigation, offer response

Decision notice (suggest within 10 working days)

If accepted, obtain acceptance in writing

Carry out decision /action and record

Response – Deadlock Notice

If decision not accepted by complainant

Issue Deadlock Notice (Template)

State view unlikely to resolve complaint internally

Outline clearly how to access FDR scheme (free)

Leave complaint “open”

Liaise with FDR

Monitor progress until complainant satisfied

Developing a good ICP – Maintenance and Improvements

1. Collection of Information

2. Analysis and evaluation of complaints• identify systemic, recurring and single incident problems and trends

3. Satisfaction with the I C P• Random surveys?

4. Monitoring of the I C P

5. Auditing of the I C P

6. Management review

7. Continuous improvement, product / service development

Developing a good ICP – Possible Responses

Refunds

Replacement

Rework

Substitutes

Technical assistance

Information

Referral

Financial assistance

Other assistance

Compensation

Apology

Goodwill gift or token

Indication of changes in products, processes, policy, procedure

Disputes Resolution Process

Suggested Website Disclosure

If you have a complaint about “S M ” or one of its representatives please contact “S M ”. “S M” has a formal complaints process. If you feel your complaint has not been resolved to your satisfaction by “S M”, you can contact our independent dispute resolution provider Financial Dispute Resolution (www.fdr.org.nz)

www.fdr.org.nz0508 337 337