My customer sent you a complaint, now what?
The first thing we do is determine if it is something that we can address. We also can’t take complaints that deal with employee/employer disputes, pricing issues, company policies, complaints against government agencies or professional procedures. A good rule of thumb is there had to have been a business transaction. Once it is determined we can handle the dispute, and we are clear about what your customer is asking for to resolve the dispute, we send a copy of it to you, the business. We recognize that we are only getting one part of the story from your customer, and we really need your input as well.
Sometimes your customer is really just asking for an apology. While we don’t file these as regular complaints, we do make sure to send you a copy. Sometimes you don’t know there is a problem until someone lets you know and this maybe the first you have heard of it.
Should I answer the complaint?
Yes! If you receive a complaint from the BBB, the first thing you need to do is answer it. If you are an Accredited Business and you don’t answer it, your accreditation could be in jeopardy. If you are not accredited your chances for future accreditation are affected. In addition, the complaint will be closed “unanswered” and it will remain on your reliability report for three years. Unanswered complaints also affect your rating with the BBB.
How do I answer the complaint?
The BBB is aware there are two sides to every story and we want your side. We do this to get both parties’ perception of the event as a starting point to work toward resolution. Use as much detail as you can and include pertinent documentation (letters, invoices, agreements, warranties, etc.). Accredited Businesses need to answer complaints within 2-4 days; non-Accredited Businesses have 10 days to answer. It is best not to ignore this step of the process, as an unanswered complaint is a black mark in consumers’ eyes.
Can I just call the customer and fix it?
Yes, some businesses do this. However, the BBB needs to close every complaint in some fashion. So if this is done, contact the BBB and let us know the issue was resolved. The BBB will also contact the customer to make sure they feel it was resolved to their satisfaction as well.
I answered the complaint, now what?
Sometimes when a business answers the complaint it is with a resolution proposal. This will get sent to your customer. If the customer agrees, the case will be closed as “resolved”. This is reflected on your reliability report and this is a good thing.
Sometimes the issues are still in dispute. If it just can’t get resolved and both sides agree to it, it will go to mediation or arbitration. Mediation is where a neutral third party works with both sides to come to an agreement. Arbitration is where a neutral third party listens to both sides and makes an independent decision, which is legally binding. Arbitrators and mediators are traditionally attorneys. Accredited Businesses get three free arbitration/mediations a year. The complainant has to pay a fee. If mediation or arbitration is used, that will be stated in the reliability report.
Do I have to roll over and give the complainant whatever they want?
Absolutely not! As a matter of fact, the BBB does not want you to reward customer bad behavior. However, it is up to you how you want to handle it. The resolution should be agreeable to both parties. If you truly feel you did nothing wrong and you’ve tried to make amends with the customer, opt for arbitration/mediation.
How does mediation work?
A professionally trained mediator meets with you and the complainant and guides you in working out a mutually agreeable solution. During the confidential session, the mediator clarifies and reframes problems and helps you both talk with each other and discuss solutions. They don’t decide what is right or wrong. They help you both reach a solution that you can both live with. The location is determined by the BBB, but a mutually convenient time and place is arranged for both parties. A typical mediation session takes two to three hours. Most mediations involve one session, but additional sessions can be scheduled as needed.
How does arbitration work?
An impartial arbitrator listens to both sides including evidence and then makes a decision that will end the dispute. The arbitrator is trained to listen to both sides and weigh the evidence presented. They will make a decision about the dispute after the hearing is over. The decision is legally binding. It is a fast and inexpensive way to settle a problem and keep it out of court. The location is determined by the BBB, but a mutually convenient time and place is arranged for both parties.
How is it decided if arbitration or mediation is an option?
A factor that may play into a decision to not offer arbitration is if the industry is highly regulated and the requested arbitration award requires one party or the other to go against state regulation. An example of this would be: A customer requested to have a $500 deductible on their home insurance. There is a claim made and it is found the agent made an error and the deductible was written up for $1000. The customer would like the business to make up the difference of $500. It is actually illegal for the insurance agent to pay the difference. The Insurance Commission can require the agent to pay the difference, but the state agency HAS to make that determination. If we know or are made aware of state regulatory requirements that have to be addressed only by that agency, we close the case and send the customer to the correct state agency.
Mediation is only successful if both parties would like to participate, so we offer arbitration. After you both know that arbitration is the final step and someone else is going to make a judgment for your dispute, we let you both know you have one more opportunity to keep the resolution in your own hands. Usually, the customer contacts the BBB and advises they would like to mediate or arbitrate. Then we contact you and let you know what the customer would like to do. You state whether or not you are willing to participate. However, if you want to mediate, we usually honor your request to give you a last opportunity to address the concerns and make your customers happy. There are times when a business contacts the BBB with their preference to arbitrate before the customer does; we let the customer know and solicit their decision. So it is a combination of the customer and you deciding what to do. Again, we give you every possible opportunity to conciliate the dispute at hand and end the transaction positively with your customer.
Is mediation legally binding?
Yes. It is a legally binding contract.
Is the arbitration statement legally binding?
Yes. It is legally binding and holds the same amount of authority as a courtroom judgment. It is appealed or confirmed by filing with the District Court and follows the exact same path as a court judgment under appeal or confirmation. There is an exception. If a judgment against a contractor is made in favor of the customer and the contractor does not follow through, a court judgment can move straight to Labor and Industry to request the contractor’s bond pay the award. The arbitrated judgment must be filed through District Court and receive confirmation and then go to Labor and Industry for payment from the bond account. If the amount in dispute is more than the amount of Small Claims court, then it is still more time efficient and monetarily beneficial to arbitrate.
What are the benefits to me as a business mediate?
- It saves you time and money
- You are heard and your interests are addressed
- The mediator is a neutral third party whose question and fresh perspective brings out where the expectations were not mutually met
- Keeps accountablility and decision making in your own hands
- You decide what is a satisfactory resolution using your own sense of fairness
- Options are explored so that a resolution is tailored to meet your specific needs
- Signed mediated agreement is legally binding
- It may be eligible to take place through a conference call eliminating travel costs and time
- Closure is received
- This is a confidential meeting
- Frivolous disputes are not disclosed
- You receive recognition that you followed through on a mutual dispute voluntarily, making the customer's concern your concern without having a court judge or regulatory body mandate that you do so
What are the benefits to me as a business to arbitrate?
- Quick, inexpensive and requires minimal energy
- Similar to Small Claims court
- Gives you the opportunity to present testimony and evidence
- A neutral third party delivers a fair and equitable decision based upon the evidence and testimony provided
- Results in a legally binding judgement
- Closure is received
- The session is kept confidential