Notes

unit 8 lesson 4
Auto Warranties - Guarantees given by a seller that the product is in good working order and specifying what types of service the seller will provide for a period of time.
•Better Business Bureaus (BBB) - Non-profit agencies that are supported financially by local business members. They promote ethical business activities, encourage honest advertising and selling practices, and provide dispute resolution between local businesses and consumers. They also provide consumers with information about a local business and whether the business has any unresolved consumer complaints filed against them.
•Chamber of Commerce - An organization of member businesses from a community.
•Consumer - A buyer of goods or services.
•Federal Trade Commission - Provides consumer protection in the areas of credit, advertising, labeling, and fraudulent business practices.
•ID Theft - A serious crime in which people’s identities have been stolen. Victims can spend months or years and thousands of dollars cleaning up the mess the thieves have made of a good name and credit record. In the meantime, victims of identity theft may lose job opportunities, be refused loans for education, housing, or cars, and even get arrested for crimes they didn't commit.
•Lemon Laws - A law designed to protect consumers who purchased a defective car, truck, mini-van, SUV, recreational vehicle, camper, full size van, boat, motorcycle or jet ski. As of 1993, all fifty U.S. states have passed Lemon Laws. Each state has different standards and procedures, but all have similar coverage.
•States Attorneys' Office - This office is designed to prosecute criminal cases and may be contacted in cases of consumer fraud by a local company.

Step 1 contacting the seller
The first step in resolving a consumer complaint is to gather any relevant documents and information that are necessary. This includes things such as receipts, cancelled checks, pictures, credit card bills, warranties, contracts or bills of sale. You should take these items with you so you can prove your case, but don't give them to the seller to keep. If they need this information, they can make copies. You should keep your original receipts, cancelled checks and other documents.

Then decide what you think is a reasonable solution to your problem. Do you want the product repaired or do you want a replacement? Maybe you really want to get your money back. Would store credit be okay?

If the problem you are having with the product or service can be resolved by the salesperson, seek out that person first. Many salespeople earn a commission that they might lose if you bring your complaint to someone else.
However, if talking to the salesperson isn't helpful, ask to see the store manager or customer service representative for the store.

Step 2
Take your complaint to the next person up on the chain of command if you do not get your problem resolved at the store.
•Find out the store's headquarters and write a letter to the consumer affairs department or corporate president. You may find the company's address on the product's label or ask for it at your local store.
•You are contacting a business, so make it a "business-like" letter. Type the letter, don't hand write it. It will be much easier to read and you are more likely to get the help you want.
•Address your letter to a specific person, preferably the person in charge of the company's consumer affairs department. NEVER use "To Whom It May Concern" as the salutation. It is too impersonal and concerns no one.
•See the Sample Complaint Letter on the following page. You should:
•Single-space the letter with double-spacing between paragraphs.
•Align all information at the left margin.
•Try to fit it all on one page, if possible.
•In the first paragraph describe the purchase including brand name, serial number, and date and place of purchase.
•In the next paragraph, state the problem you had with the product or service, and give a brief history of the steps you took to try to resolve the problem.
•In the third paragraph, ask for the specific action you want from this company and tell them what copies of documents you are sending as proof of purchase and/or warranty.
•In the final paragraph, thank the company's contact person for his or her assistance, state the amount of time you will wait for a reply, and tell the company how you can be reached.
•Remember to save a copy of the letter for yourself.
•Also, remember to send only copies, not the originals, of any documents.
•Most importantly, do not threaten, use foul language or harass the contact person. This person did not personally cause your problem! The nicer you are, the more likely you are to get the help you need!!

•Or, call the company's toll free number

Trade and Professional Associations Businesses that provide similar products or services will usually belong to an industry association. This association may be able to help resolve problems between consumers and their members. Many of these associations have web sites that provide consumers with information about their industry.

If you cannot resolve a problem with a business, find out if they are a member of a trade or professional association. You can check in the Consumer Action Handbook from the Federal Consumer Information Center for the association's contact person, address and phone number. Your local library's reference section is another good source to help you find the appropriate trade and professional association.

Better Business Bureaus

Better Business Bureaus are non-profit agencies that are supported financially by local business members. They promote ethical business activities, encourage honest advertising and selling practices and provide dispute resolution between local businesses and consumers. They also provide consumers with information about a local business and whether the business has any unresolved consumer complaints filed against them. They do not rate businesses or endorse any particular product or business.

The following information was taken from the Better Business Bureau web site http://www.bbb.org This link will open in a new window

Local BBB’s across the US & Canada serve the consumers and businesses in their areas. BBB reports provide information on over 2.5 million organizations. It's a good idea to check before you invest or give. If you think that a company or charity has treated you unfairly, file a complaint online. We will contact the organization to help resolve the issue. Furthermore, the BBB accepts complaints on issues such as ID theft, Lemon Laws, and Auto Warranties.

Before you begin filing your complaint with the Better Business Bureau, please note:

The BBB's goal is to successfully resolve complaints involving buyers and sellers in a fair and timely fashion. This includes complaints involving consumer-to-business and business-to-business transactions that involve the advertisement and/or sale of a product or service. Information concerning the nature and resolution of complaints filed with the BBB is used in developing BBB reports on companies. The BBB accepts complaints involving both BBB members AND non-members.

Better Business Bureaus generally do not handle complaints which are more effectively handled by other government or private agencies or the legal system, such as complaints involving employment practices, discrimination, or matters in litigation.

The BBB strongly encourages consumers to first attempt to resolve complaints directly with the company; however the BBB will not reject a complaint if a consumer has not taken this step. All complaints are processed by local Better Business Bureaus, most often the Bureau where the company is located. Historically, over 70% of complaints through the BBB are resolved. In some cases, BBB mediation or arbitration may be offered to assist in resolution.

Your complaint will be forwarded to the company within two business days. The company will be asked to respond within 14 days, and if a response is not received, a second request will be made. You will be notified of the company's response when we receive it (or notified that we received no response). Complaints are usually closed within 30 calendar days.

The BBB reserves the right not to process complaints containing abusive or foul language.

LAWSUIT
Small Claims Court

In Illinois, Small Claims Court is available to consumers to file a small civil suit of $2,500 or less. You may choose to have a lawyer represent you or you may represent yourself. You must fill out a complaint form and file it with the county clerk for a small fee. The complaint is sent to the business and a trial date is set. Remember, this is a civil suit. Even if you win, the court will not collect your money for you. You may have to file additional legal papers, at extra cost, to try to recover your money if the business does not voluntarily pay the judgment.

Class-Action Suit

A group of consumers with the same complaint against the same company may sue as one group in one lawsuit. This is called a class-action suit. State and local laws regulate this type of lawsuit, and you should contact an attorney who specializes in bringing this type of lawsuit to court. The advantages of a class-action suit are that it allows consumers to sue in just one court action and may encourage people to seek redress for a consumer complaint that would be too small to bring to court individually. The disadvantage is that if you sue as a "class," you are usually barred from bringing any other complaints about the problem to court yourself. If you sustained substantially more injuries or damages than other consumers involved, you may not want to be part of the class action.

The right to redress means consumers should be able to get help for their complaints.