QUESTION
We
are redrafting on consumer complaint policy and we’re getting stuck on how to
handle the early stages of complaint resolution. Can you provide some practical
guidance with respect to starting the complaint resolution process?
ANSWER
The
Board of Directors or Senior Management should delegate the responsibility of
monitoring and responding to complaints to a manager. Some companies give this
individual the title Complaint Resolution Officer or CRO.
All
written complaints initially would be directed to the appropriate department
and functional area, or, if there is any uncertainty, instead to the CRO. The
appropriate personnel will draft responses to consumers and/or regulators, and
cross copy the CRO. If the company is small, the initial complaints would be
sent directly to the CRO.
Generally,
the CRO will keep a central file of complaints and responses. The Board and
Management should meet, at least quarterly, to review new complaints and
responses. Senior management would determine if certain complaints must be brought
to the attention of the Board more often or if the response to the consumer
and/or regulator should come from the Board.
Once a complaint is noted, institution personnel may be
interviewed individually by the functional department manager or designated CRO
if they are involved in the consumer’s complaint or comment. Explanations of
the occurrence can be requested during the interview process, and copies of any
written instructions furnished to employees about the allegation would be
reviewed and discussed during the interview process.
A written report should by written by a department manager or CRO,
presenting the facts and information in a clear, objective manner. The report
should:
- Summarize the facts in a chronological order;
- Detail the precise claims of the complainant;
- Express the resolution desired by the complainant; and,
- Indicate management’s response to the claims of the complainant.
The
report should include the recommended course of action or corrective procedures
and comments on whether the complaint represents an isolated case or a pattern
or practice that needs to be corrected.
Complaint
resolution must follow a timed response process. Unless otherwise required by
regulation for different timely response criteria, the following general
guidelines should be followed regarding responses to complaints:
- Complaints should be acknowledged within 15 days after receipt of the correspondence, oral, telephonic, or electronic notification of a complaint;
- Inquiries, comments, or objections should be answered or information provided within 15 business days after receipt;
- Complaints not involving an on-site investigation should be fully processed and responded to within 30 days after receipt; and,
- Complaints involving an on-site investigation should be resolved within 45 days after receipt.
Jonathan Foxx
Managing Director
Lenders Compliance Group
