Dealing with Consumer Issues
November 10, 2020
If your toaster goes up in flames the first time you pop in a bagel, you're confronting a familiar consumer issue: the product that doesn't work. According to the Consumer Federation of America, the consumer transactions that generate the most complaints are used car sales, home improvement, auto repair, mail order, telemarketing, credit, and collections. Another consumer issue that you may confront when you buy a product or apply for credit is identification fraud. When your identification is lost or stolen, your good credit may be ruined for a long time. What should you, as a consumer, do to resolve issues you have with products or services? How can you protect your identification? The discussion that follows will give you a quick look at how to find the service you need, manage your credit issues, resolve consumer complaints, and deal with lost or stolen identification.
Finding good products
Searching for the ideal product takes time, so if you want one that meets your needs, do your homework. Figure out exactly what you want and how much you want to spend. Then ask for recommendations, shop around, and check out brands and manufacturers. One popular consumer product resource is Consumer Reports magazine published by Consumers Union. This organization tests and recommends products (including automobiles) and services. You can buy the organization's magazines and books in stores or through subscription, or you can read reports and articles online.
Finding good service
If you want to find good service, don't leave it up to chance. Here are some suggestions:
• Deal with a company that has a good reputation for service in the community. It may be difficult to evaluate a new company, but if a company has been in business in the same location for a number of years, it should be relatively easy to find information on the company's reputation. Start by asking anyone you know whether they've dealt with the company and call your local Better Business Bureau (check your telephone directory for the listing). You might also check with your local chamber of commerce.
• Ask your friends, family, neighbors, and businesses for recommendations. If they've had a positive experience with a local or national company, they will be happy to share that experience with you.
• Trust your instincts. If you call for service or visit a business and you feel uncomfortable, think twice about using the services of the company.
• If you are treated rudely, go elsewhere. Although it's possible that you've run into the company's one rude employee, don't take the chance that others will be better. Companies that treat their employees well usually have employees who treat their customers well.
Read contracts carefully before signing
If you are applying for credit to purchase a washer and dryer, the appliance store may shove a contract at you. If so, read it carefully and make sure that you understand the repayment terms, the cost of credit, and your rights.
Understand the product warranty
Think more than twice before buying extended warranties because these may be costly and you may have difficulty getting good service under the warranty.
Beware of service contracts
Service contracts are popular with retailers because they are moneymakers. However, if the product you buy is a reliable brand and has a warranty or is an item that is unlikely to need service frequently, you may not need to service it until long after your contract has expired. Instead, guard against immediate catastrophe with a written refund policy and consider using your credit card for added protection.
Protect yourself by paying with a credit card
Under the Fair Credit Billing Act, when you pull out your plastic to buy a product, you may be effectively gaining a warranty just in case something goes wrong with your purchase. If your washer is dented when it arrives, you'll first go back to the merchant and try to resolve the problem. If the store refuses to repair or replace the washer, write (don't phone) your credit card company and identify the charged item and the nature of your complaint. At that point, you may be able to withhold payment on the item until the issue is resolved.
Know your rights
Consumers are protected under federal and state laws against certain unfair practices. One well-known group of consumer protection laws are the state lemon laws that protect you when you purchase a car and later find out that the car is defective. Other laws, such as the Consumer Credit Protection Act and the Equal Credit Opportunity Act, protect such other consumer rights as the right to receive information regarding credit terms and to be treated fairly and equally when applying for credit.
Protecting yourself against identification fraud
When you buy a product and apply for credit, you may find out for the first time that you're a victim of identification fraud because accounts you've never heard of appear on your credit report. What do you do now? If someone has fraudulently opened accounts using your name and identification, your first step is to notify the police, the credit-reporting bureaus, and the account issuers.