Many customers or borrowers do have disputes, mostly while repaying loan.
They may not be wrong all the time.
Why disputes?
Disputes arise primarily because many applications are sourced by Direct Marketing Agents / Dealers in case of auto loans. An illustrative list of such disputes are as follow:
1. Agents and some employees make wrong promises, just to make a sale.
2. Many agents are neither knowledgeable nor reveal every fine print.
3. Customers are exited and do not read contract terms ; some may not fully understand all the jargons.
4. Many relate to monthly payments (EMIs) and/ or number of instalments.
5. Few relate to due dates.
6. A few but serious ones relate to rates, charges and penalties.
7. Also relate to the price of the vehicle, especially in case of used vehicles and the quantum of loan.
Many disputes aggrevate because
1. The customer does not know where to go
2. The loan company is not responsive
3. Collection agents just do not listen. Or insult
4. Company/ agent looks at every delinquent customer as bad / cheat.
Many disputed accounts are delinquent; because customers feel that that is the way to make the company to come over and listen.
It is important that company do have customer service departments to listen, note, investigate, explain or accept and conclude whether the dispute is genuine.
In case of delinquent customers, listening to the disputes and explaining as to how it is not / may not be disputable would solve 80% of the disputes. Subsequently and consequently, they would pay up.
Not willing to listen lead to aggrevating the problem and to a loss situation. If the dispute is allowed for a longer period and especially in case of deliquent customers, they learn not to pay and will become high risk account as the value of the vehicle will erode to be smaller than the loan receivable.
Listening attentively can also help unearth fraud situations.
Also, provide a window in the website for airing the dispute; let somebody track in head office.
Finding an honourable solutions quickly would help improve customer satisfaction and consequently customer retention.
So, listen to disputes carefully and find an amicable solution quickly.
They may not be wrong all the time.
Why disputes?
Disputes arise primarily because many applications are sourced by Direct Marketing Agents / Dealers in case of auto loans. An illustrative list of such disputes are as follow:
1. Agents and some employees make wrong promises, just to make a sale.
2. Many agents are neither knowledgeable nor reveal every fine print.
3. Customers are exited and do not read contract terms ; some may not fully understand all the jargons.
4. Many relate to monthly payments (EMIs) and/ or number of instalments.
5. Few relate to due dates.
6. A few but serious ones relate to rates, charges and penalties.
7. Also relate to the price of the vehicle, especially in case of used vehicles and the quantum of loan.
Many disputes aggrevate because
1. The customer does not know where to go
2. The loan company is not responsive
3. Collection agents just do not listen. Or insult
4. Company/ agent looks at every delinquent customer as bad / cheat.
Many disputed accounts are delinquent; because customers feel that that is the way to make the company to come over and listen.
It is important that company do have customer service departments to listen, note, investigate, explain or accept and conclude whether the dispute is genuine.
In case of delinquent customers, listening to the disputes and explaining as to how it is not / may not be disputable would solve 80% of the disputes. Subsequently and consequently, they would pay up.
Not willing to listen lead to aggrevating the problem and to a loss situation. If the dispute is allowed for a longer period and especially in case of deliquent customers, they learn not to pay and will become high risk account as the value of the vehicle will erode to be smaller than the loan receivable.
Listening attentively can also help unearth fraud situations.
Also, provide a window in the website for airing the dispute; let somebody track in head office.
Finding an honourable solutions quickly would help improve customer satisfaction and consequently customer retention.
So, listen to disputes carefully and find an amicable solution quickly.
