Mediation and 3rd Party Intervention to Diffuse Conflict

Back in the 80's, I was a Better Business Bureau arbitrator. My specialty was automobile Lemon Law cases. Consumers were frustrated with Ford, GM, Chrysler and the State of California required arbitration prior to trial. It was an enlightening experience and good community service to boot.

What did I learn? People lie and companies lie even more. My job as the arbitrator was to cut through the BS and get to a solution that all could agree on. I had authority to award a buyback of the car if the Lemon Law standard was met. That usually wasn't necessary.

Most consumers simply wanted a fair shake. They wanted their complaints acknowledged. The wanted a simple, honest apology and some promise that it wouldn't happen to the next guy. They wanted a reliable car for their money.

Instead sometimes factory reps would cut corners like attempting to buff out paint imperfections instead of fixing them. Or withholding records. Lots of cutting corners rather than fixing problems the first time. It was Detroit at its worst.

The result? Lots of buybacks, lots of negative publicity and consumer ill will. It was just part of why we're driving Camrys, Accords and Hyundais today. Poor treatment of the American consumer comes back to bite you eventually.

The point? We're doing the same thing in the short term lending and collection space. Consumers don't feel they're being heard, that they're being taken advantage of . If we don't resolve our problems in house, well... 10,000 FDCPA lawsuits last year, a new CFPB and countless complaints on online complaint sites. Add to that real regulatory "reform" targeting extinction of short term lending and limitation of collector's ability to contact consumers.

How do we start to fix this? LISTEN. Consumers tell you before they go running to FDCPA attorneys and the Attorney General.

How do I fix this for clients? Actively engaging consumers, diffusing anger, getting back to the business at hand. Getting both sides to agree to a fair, workable payment arrangement on valid debts.