how to complain!
David and Goliath If you provide a poor service, you know your customers won't come back. Many organisations (particularly the larger ones) we all have to deal with such as banks, mobile phone companies, local and central government and so on don’t have this problem. We have to work with them, so what can you do if they don’t do what they promise and you or your business loses out?
Know your enemy The first step is to identify precisely who or what you are dealing with, and where they are. Many organisations use trading names; the official name of the mobile phone company “Orange” is Orange Personal Communications Services Limited. This is important as many companies use multiple trading names. You can find out what they are really called with a little detective work; if you look at the terms and conditions that you will have received, it will give the full name in the small print. The internet is also useful-most big companies have a website, and usually somewhere on the front page you will find a link to “terms and conditions”, often hidden at the bottom in very small typeface.
Once you have the official name, you can use the free Companies House website service to locate the Registered Office (go to http://www.companieshouse.gov.uk/ and click on “find company information” and then go to “WebCheck”). Companies are required to give their name and registered office address on all of their stationery, but sometimes this is overlooked!
If you are dealing with a partnership or a sole trader using a trading name, things are a little more complicated. Its useful to know the name(s) of your opponent if you can find it, as partners and sole traders are personally liable for the debts and obligations of their businesses. Again, try the internet; if they have a website, have a look at the source code (click “view source” in options). There’s often all sorts of interesting things lurking in the HTML coding.
The evidence The second step is to get your evidence of the problem. This can be easier said than done, it may be an intermittent fault for example with a phone line. If so, can a friend confirm they witnessed the problem too? Get them to write it down. You may need an independent expert to give their opinion, particularly if it’s a problem with a vehicle, a computer or something equally high-tech. Now you need to make your complaint. If your first approach is by phone, make a note of the date and time, the number you dialled, and who you (eventually) speak to. Be icily polite and don’t lose your temper! Ask them to confirm their name and position, and make a brief note of what is said. If they agree to do something to solve the problem, at least make sure they agree to a date when it will be done by, and whether it will cost you anything. Consider writing or emailing to them after the conversion to confirm what your complaint was about, your understanding of what was agreed, and keep a copy.
Terms and conditions often a complaint will be met with a denial of liability, based on their terms and conditions. But to be able to rely on them, the trader has to show that you were given reasonable notice of what the terms and conditions were before the contract, and even if you were, that any exclusion of liability clause is reasonable. This doesn’t just apply to individuals either; the Unfair Contract Terms Act 1977 also applies to businesses if they are dealing as a consumer (ie out of the area of their business). The Unfair Contract Terms in Consumer Contracts Regulations 1999 gives consumers even more protection. What is “reasonable” depends on many factors-the Office of Fair Trading has many examples on its website at www.oft.gov.uk. It may well be that an attempt to rely on an exclusion clause will fail. Its also important to remember that your complaint goes to the organisation you contracted with, not the manufacturer of faulty goods; you can't be forced to rely on a manufacturer’s warranty.
Bad service-so what? When you make a contract with an organisation, they make a promise to you to do something in return for your money. Sometimes things go wrong-what can you do? It depends on how serious the problem is, and precisely what the contract says they will do. Not every problem gives you a legal remedy; a useful test is whether or not it has cost you money rather than just annoyed or inconvenienced you. Often service problems won’t amount to a breach of contract (keeping you hanging on to a call centre for an age waiting to speak to a human being for instance probably won't be). If there is no breach of contract, there’s no claim. So your only remedy may be to complain about the poor service in the hope of getting some compensation.
A complaint about bad service can be worthwhile in some cases. Some professional bodies will award compensation for poor service even if there has been no breach of contract (for instance the Legal Complaints Service, which oversees solicitors). It may also be possible to use it to negotiate a price reduction for either the services that are being charged for or in return for you agreeing to place another order. The first step is to use any complaints procedure that the organisation has, and if this is unsuccessful to refer the matter to any trade association that it belongs to. Often it is not until you have exhausted any complaints procedure that you can move on to other methods. If it doesn’t produce a satisfactory result, it’s time to consider the alternatives.
Sometimes the media can help you-many newspapers have financial columns that can deal with these issues. But sometimes you have to cut your losses and ultimately terminate your contract with the organisation, if you can (sometimes you don’t have the choice-you can't opt out of dealing with HM Revenue and Customs). Things can get nasty if the contract is a long-term one, for instance a mobile phone contract. Then what? Unfortunately, if you can't negotiate your way out of it, you may have to consider refusing to pay and then letting them take you to Court for the arrears that eventually build up. If you do decide to do this, its worth checking your credit rating from time to time on Experian for instance; if an adverse rating has been posted against you, you can have an explanatory note confirming the details of any dispute put onto your record but be aware that this can reduce your credit rating even so.
Using the Court system If you or your business can show that the service problem has cost money, then using the Court can be the best way of recovering your loss. But you need to be very clear about the basis of your claim; you have to be able to demonstrate that a service which you contracted for was not provided (or was provided negligently) and as direct result you suffered a financial loss. As I mentioned above, annoyance and irritation aren’t enough. Claiming that a problem cost you potential business is difficult-how do you show what business you would have got but for that problem? A full explanation of the costs the problem has put you to, with as much proof as possible (such as invoices for the cost of sourcing an alternative service) is very helpful, and often it also helps if your accountant can do this for you. If your claim is for less than £5,000 you can use the small claims system at your local County Court, and this is where knowing the registered office of the company is vital. You must issue any proceedings against the full name of the company you are pursuing, and also give the details of the registered office. If you are bringing a claim against a company, even if a defence is filed, the proceedings will stay at the Court that issued them in most cases. This, and the fact that costs are not awarded in small claims, means that in reality many small claims against large companies are settled before a hearing because it is not economically viable to defend them.
Complaints procedures and regulatory authorities Some industries and organisations have their own regulating body which deals with complaints. Often you can't use them until you have gone through the organisation’s internal complaints procedure, but they have wide powers both to investigate complaints and to award compensation if the organisation is found to be at fault. Bodies such as the Financial Services Authority also have statutory compensation schemes which will pay some compensation in the event that the organisation has disappeared or become insolvent.
Ombudsmen there are many ombudsman services, including those which deal with complaints about local and national government actions. They are effectively the last resort, as it is not possible to appeal from their decisions. However they have extremely wide powers of investigation, and can also recommend compensation in cases which (for legal reasons) are not capable of being challenged or resolved by the Courts. A complete list of the ombudsmen is at http://www.bioa.org.uk/a-z.php