Alternative Dispute Resolution The Next Challenge Neil Taylor General Manager, Dispute Resolution

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Alternative Dispute ResolutionThe Next
ChallengeNeil TaylorGeneral Manager, Dispute
Resolution
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ADR The Next Challenge
What is Alternative Dispute Resolution?

• Resolving disputes without recourse to litigation
• Resolve disputes at the lowest possible level of
  intervention
• Information advice about rights and obligations
• Non litigious methods such as conciliation or
  mediation
• Filtering of disputes before escalation

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ADR The Next Challenge
CAV and Dispute Resolution

• Victorias main consumer protection agency since
  1964
• Aim to promote consumer rights, ensure markets
  operate effectively and protect communities
• Principles of CAV dispute resolution
• accessibility, independence, fairness,
  accountability, efficiency and effectiveness

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ADR The Next Challenge
Complaints to CAV
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ADR The Next Challenge
Key complaint areas
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ADR The Next Challenge

• CAVs role in ADR

• Effectively and efficiently resolve consumer
  complaints
• Avoid financial loss to all parties by avoiding
  need for recourse to litigation
• Identify emerging trends involving unacceptable
  trader behaviour 
• Rapidly and actively influence trader behaviour
• Prevent continuing harm due to unacceptable
  trader behaviour
• Secure compliance with legislation
• Work with traders and industry to achieve a
  responsible marketplace where consumers are
  protected

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ADR The Next Challenge

• Case Study

• ABC Pty Ltd an LMCT operating in both NSW and VIC
  advertised vehicle finance targeting people with
  a poor credit history
• CAV received complaints that ABC had failed to
  advise of transfer/stamp duty requirements,
  arranged credit without properly disclosing
  interest rate or requirement for loan balloon
  payment
• CEO called to a meeting with CAV
• CEO unaware of issues because staff were acting
  outside their authority

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ADR The Next Challenge

• Case Study cont

• As a result of CAVs intervention
• ABC Pty Ltd replaced its management staff
• Entered a detailed undertaking with CAV to comply
  with Motor Car, Fair Trading and Consumer
  legislation
• Identified all vehicles sold during the relevant
  period, arranging transfers and fully resolving
  all complaint claims
• What are the lessons
• No effective internal dispute resolution system
• No effective internal compliance system
• Inappropriate staff without effective management

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ADR The Next Challenge
The Next Challenge

• IDR versus ADR
• Internal Dispute Resolution
• Customer is not always right
• However, a complaint to CAV is telling you
  something about your business
• Do you have an internal complaints handling
  process?
• How effective is it?

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ADR The Next Challenge
Complaints Handling

• Why do it?
• Win customer loyalty
• Avoid loss of potential customers
• Complaint feedback helps monitor performance
• Complaints to CAV and other authorities can have
  legal implications and an adverse impact on
  reputation
• Makes good commercial sense

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ADR The Next Challenge
Complaints Handling

• How to do it?
• Commitment from the top
• Who is going to drive complaints handling?
• Do your customers know where to complain?
• Review complaints regularly
• Dealing with oral and written complaints

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ADR The Next Challenge
Possible Future Initiatives

• Motor car traders licence imposes obligations
• Comply with the MCT Act and Regulations
• Honest, Fair and Efficient
• Discreditable conduct
• Fit and proper person
• Condition of licence to establish and maintain an
  effective internal complaints handling and
  compliance system
• Licensing of motor industry staff