Here's how to complain and why you should

Friday, 5 April 2019

New Zealanders have a reputation for not being very good at complaining.

When something goes wrong, we're often more likely to vow not to buy anything more from a shop again, or to recommend friends avoid a certain restaurant, than we are to stump up and tell the business owner or manager that something went wrong.

But complaining can be beneficial for both parties.

There are a few ways to make sure your complaint is effective.

* Budget Buster: Complaining about your bank really pays off

* Insurance Ombudsman's warning to learner drivers**

Jessica Wilson: Don't be fobbed off by shop staff telling you your item is out of warranty.

Have evidence: Jessica Wilson, head of research at Consumer NZ, said it was important to be able to back up your complaint with a good idea of precisely what happened when. Keep paperwork if you can, or get things in writing because the less information you can present with your complaint, the weaker your argument will be.

Know your rights: Wilson said it was common for shop staff to tell customers that they were out of luck if a product was outside the shop or manufacturer's warranty. But customers have rights under the Consumer Guarantees Act regardless, requiring that items are of acceptable quality, fit for purpose, match the description or sample offers, are a reasonable price, arrive on time and in good condition. The law also applies to services - they must be carried out with reasonable care and skill, be fit for purpose, conducted within a reasonable timeframe and charged for at a reasonable price.

'You might be fobbed off by a sales rep telling you it's out of warranty but you've still got rights. Find out what they are - often it's good to mention the Consumer Guarantees Act,' Wilson said. 'Don't be afraid to ask to speak to a manager or the person who deals with complaints.'

Know your options: If you're dealing with a bank, insurance company, other financial services provider or utility company, they will also be a member of an external disputes resolution scheme. If you can't get your complaint dealt with to your satisfaction directly, you can follow through with the external scheme. The company has to tell you how to do this.

You have rights if things go wrong - do you know how to exercise them?

Try social media: Wilson said that customers could often found they got a good result if they took the complaint to social media. Tweeting a company or mentioning the problem on Facebook is a high-profile way for an issue to be aired and often gets attention quickly.

Why bother?

If there was a small amount of money involved, or it's a business that you weren't planning to go back to, anyway, you might wonder whether it's worth complaining.

But Insurance and Financial Services Ombudsman Karen Stevens said it was important to complain when something goes wrong for a few reasons. 'It's their right to complain, it's entirely free, their issue could be sorted, they'll be listened to and will gain more understanding and complaints let the industry know if things need to change. Complaints contain really valuable lessons and insights, which we share with industry so they can improve customer outcomes.'

What resolution could you expect?

Wilson said it was important to go into a complaint situation with an idea of what remedy would be acceptable to you.

Government data shows half of consumers said they had experienced a problem with a product or service within the first two years of purchase. Half had it resolved. But only 37 per cent of consumers reported that their problem was resolved to their satisfaction.

The Consumer Guarantees Act says that when the problem is minor, the business can choose whether to repair the item or replace it. If it's a big problem you can refuse the repair and ask for a replacement or your money back.

Some service providers will offer a free service to rectify something that hasn't been done properly, or a discount on future work.

If your problem is one that could go to an external resolution scheme, you could also be awarded compensation.

The Banking Ombudsman, who hears complaint about banks, can award compensation of up to $350,000 for direct financial loss, and up to $9000 for inconvenience, stress, embarrassment or disruption to financial planning. In the most reent financial year, more than 10 cases heard by the scheme resulted in compensation of more than $10,000.