Back in April, The Motor Ombudsman (TMO) reported its highest ever quarterly volume of service and repair case submissions, with more than 1,600 new cases logged in the first three months of 2024. This was the highest volume of disputes seen in a single quarter in relation to vehicle maintenance.
TMO wrote at the time that the “likely drivers of the year-on-year rise are the continued financial pressures on consumers from the heightened cost of living, and the growing number of individuals turning to … our… Alternative Dispute Resolution (ADR) service to help recoup losses.”
Garages will have both happy and unhappy customers. The former tend to come back and may make a recommendation. In contrast, the latter group are unlikely to return and will most likely – especially in the internet age – do all they can to trash a reputation.
Richard Tiley, AA UK Network Manager, thinks that “great customer service is crucial… is the king pin to success for any workshop… [and] step one to building a better workshop.”
The question, then, is what should garages do to prevent complaints?
One option is to be part of an ‘approved network’ such as those operated by the AA and RAC. But as Tiley outlines, getting accreditation is not simple precisely because it’s a ‘stamp of approval’ that can be used to market the business.
Once applied for, a few basic checks are carried out. Tiley says that this triggers an appointment for “a robust audit … to prove industry compliance and best safe working practices are being adhered to.” Each network garage is audited on an annual basis and “if standards start to slip and compliance is not met, this can lead to removal.”
The RAC does the same. Simon Williams, the RAC’s Head of PR & External Affairs, says that it monitors the level of customer service provided by its approved garages: “We expect all garages on our network to provide high levels of customer service, not just for themselves and their customers, but in part because they’re representing the RAC.”
It too carries out checks on those wanting to join its network and also “completes an unannounced audit of their premises once they join … on an annual basis. Our audit is designed to support garages in making improvements to their business and better the level of service they offer to their customers.”
Bill Fennell, Chief Ombudsman and Managing Director of TMO, also recognises the value of high standards as “it drives customer satisfaction, repeat custom, and positive word-of-mouth recommendations. This is especially important, as more consumers leave feedback, both positive and negative, on social media sites, and consumers reference these sites.”
It’s also worth noting that the public has a better understanding regarding their legal rights and have readily-available access to resources via the web to, as Fennell says, “enable them to shop around and make an informed choice as to which garage they ultimately use.”
How to prevent a dispute from becoming a complaint
It’s true to say that disputes arise. The test, however, is how firms deal with the matter before them.
Tiley says that complaints can occur “for any one of many different reasons, some justified, some down to lack of understanding of our complex industry.” The AA has a team to handle customer complaints that come through: “The complaint is then heard in full, then the other party will be contacted to share their experience and offer any additional evidence to the situation. We aim to resolve all customer complaints in house with a fair and robust process being followed.”
From TMO’s perspective there are several steps that garages need to take to reach a resolution.
The first is to bring disputes to a swift and fair conclusion and maintain a positive long-term relationship.
The next step involves a clear and well laid out process that the business will follow, should a compliant arise – and making it easily accessible via the business’s website.
Lastly, there is regular communication and open and calm dialogue so as to get a clear understanding of the issue from the consumer’s perspective. Here, Fennell says that garages would do well to remember that “vehicle complaints can sometimes be charged with an added element of emotion as they are often high value items that the consumer is reliant upon in their daily lives.”
Alternative Dispute Resolution (ADR) services
But if the matter cannot be resolved Fennell says that stalemate follows and where this happens “businesses are legally required to signpost a consumer to a certified ADR provider, such as The Motor Ombudsman.”
Similarly, Tiley knows too that customers may not be happy with a resolution offered and that ADR may be the way forward so as to “look at the case from both sides with all evidence that has been presented from both parties.” He emphasises that “suitable evidence of claimed wrongdoing must be available to substantiate any claim.” Even so, he thinks that “ADR is a key part of modern garage life, both to protect the garage owner and consumer alike.”
In overview, ADR refers, says the government, to finding “ways of resolving disputes between consumers and traders that don’t involve going to court.”
There are two forms of ADR – mediation, where an independent third party helps the disputing parties to come to a mutually acceptable outcome, or arbitration, where an independent third party considers the facts and takes a decision that’s often binding on one or both parties.
TMO starts with the former but may progress to the latter if no way forward can be found. Here Fennell says that “if a consumer accepts this decision, it is legally binding on the business to provide the award that has been made.”
Consumers can withdraw from ADR and go to law. However, courts now expect that, where available, consumers will try and resolve their complaints through ADR first.
It should be said that the AA Approved Garage Network is partnered with TMO. Tiley details that “we provide their ADR service… What we really like about TMO is its level of professionalism, industry knowledge and status, but more notably the fact it remains truly impartial and judges each case on its own merits.”
In contrast, the RAC’s ADR is in-house. According to its website: “All of our ADR officials are employed on a permanent basis by RAC to ensure our ADR service is completely impartial.”
It is interesting to understand where the causes of most complaints TMO sees lie – and it’s not where most would expect it. As Fennell comments, “the majority of … disputes that we see tend to stem from work carried out in relation to the drivetrain area of a vehicle, i.e. the engine and transmission, rather than being to do with the level of customer service provided.”
He explains that “modern cars being complex machines, it may not always be possible to diagnose the fault with a vehicle at the first attempt, and misunderstandings may therefore occur if a garage has not clearly explained to a customer what work is needed, or has not gained their pre-authorisation for the work to be carried out.” Notably, TMO’s Service and Repair Code states that any work or costs should always be agreed in writing with a consumer before it is undertaken.
TMO isn’t currently on a statutory footing – being part of its regime is purely voluntary. Fennell says its dealers, garages, used car outlets, mobile mechanics, vehicle manufacturers and extended warranty providers all agree to follow its codes of practice and consumer law. Only breaches of either can be investigated.
Fennell thinks that if the government decides to make ADR and the use of codes of practice mandatory in the automotive sector, it “would provide all consumers with the peace of mind that, should they have a dispute during their car purchase or ownership experience, there would be an independent service… they could turn to.”
In the meantime, Tiley offers tips to keeping customers happy. He says to “always listen… remain professional, listen and always reply in a calm, measured manner”. He also suggests that transparency helps – keeping customers informed over timescales, costs and the unforeseen. He feels that when explaining the need for any remedial repair, visual aids always work well – “a system that shows how a specific component works and why it has failed, or even a physical part to show the customer” would help them see the reason why money needs to be spent.
At the end of the day, garages – like consumers – have choices. They can decide to offer good service and elect to be part of a process that helps resolve disputes, or they can dig their heels in. Those that do the former will find business easier to sustain and less expensive to advertise.
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