Tuesday, November 10, 2009
CI : November 2009 FOMCA
November 2009
The NCCC
The National Consumer Complaints Centre (NCCC) is a dedicated complaints handling service for consumers. It is an initiative by FOMCA and ERA Consumer Malaysia. Since September 2008, NCCC has been registered as an independent foundation under the Companies Commission of Malaysia, which has the same objectives.Getting started
FOMCA and affiliated Consumer Associations in Malaysia started the NCCC in response to the difficulty consumers faced in resolving issues or complaints with private and government service providers.
Before the NCCC
Before the NCCC, the consumer associations could act as a united voice to solve problems of members and the public. However, part-time volunteers provided all these activities.
As time went by, some of the consumer associations recruited full-time personnel to handle administrative work and to deal with complaints. As the public increasingly used the consumer associations to resolve their complaints, those managing the complaints found they needed qualified and experienced personnel for rapid handling of the increasing number of complaints.
This situation prompted FOMCA through the Selangor Consumer Association (SCA) and ERA Consumer Malaysia to launch NCCC as an operational unit under FOMCA in 2004.
Funding
Since 2005, the SCA has received funds from a project grant from the Ministry of Domestic Trade and Consumer Affairs (MDTCA) to partly fund the NCCC.
The remaining funds are raised from individuals and foundations through fund-raising activities.
Publicising the NCCC to consumers
Initially NCCC publicity was through the 'Buletin Pengguna', a monthly consumer newsletter of the MDTCA, published and distributed by FOMCA.
Business cardsThe NCCC was also promoted through business cards, given out at events by FOMCA and its affiliates.
Newspaper columns
In 2006, a regular column in the The Malay Mail both canvassed complaints and published success stories of cases that were solved by the NCCC. This showed consumers that the NCCC could be an effective tool.
Press releases and the media
Since 2007, NCCC continues to use newspapers, television and radio to reach out to consumers by providing an analysis of complaints and publicising current prominent consumer complaints. These stories get picked up and receive wide and extensive coverage by the local media. They are spread through regular press conferences and press releases.
Public discussion
In 2008, a weekly 1-hour radio talk show on Radio 24 in Malaysia allowed members from NCCC, FOMCA and ERA Consumer Malaysia to discuss specific consumer issues. Both the program and NCCC were promoted throughout the week with jingles.
Companies learn their responsibilities
Since 2004, an increasing number of companies are aware of the NCCC. Every interaction with companies and corporations is an education process - but it is the companies that are educated. They are becoming aware of the rights of consumers and their responsibilities as a company in complying with the relevant laws in place.
Consumers learn their rights
The NCCC is important in assisting ordinary consumers who are still unaware and less vocal in demanding their rights. Consumers dealing with the NCCC are made aware of their rights and the avenue available to them to resolve their complaints.
Many use NCCC to pursue their complaints with suppliers or service providers for them; but there are also consumers who request advice and guidance to pursue their cases on their own, and do so with success.
The most common complaints
The top three complaints received by the NCCC relate to:
- housing
- scams, and
- poor customer service.
A real case
Consumer M paid a deposit on a super-bike, hoping to be approved for a bank loan. But the loan was rejected, so Consumer M returned to the supplier for the deposit.
However, the supplier refused to repay the deposit and Consumer M gave up on getting his deposit back.
One year later, Consumer M heard about the NCCC and contacted them for help. The NCCC sent a letter to the supplier on Consumer M's behalf. Still the supplier refused, pointing out that the deposit receipt clearly stated that 'All deposits are not refundable', and that Consumer M was fully aware of this.
The NCCC wrote back promptly, quoting a paragraph in the Malaysian Consumer Protection Act 1999 that provides the right to consumers for a full refund of any deposit in the event of a cancellation of a contract.
The supplier immediately replied to Consumer M with a cheque for the full deposit.
The case shows that traders are often not fully aware of their legal responsibilities to consumers.
Dealing with businesses
Most service providers are initially slow or do not reply to the NCCC's letters and emails. The NCCC has to depend on carbon copies it sends to the heads of regulatory agencies to force replies or resolutions.
Even government agencies need pushing
In one such case, after failing to get any reply from a government regulatory agency, the NCCC carbon copied a follow-up email to the Chief Secretary to the Government. The reply was swift. The Chief Secretary 'replied to all' at 9pm the same evening with the simple message '???'. The very next day at 10am, the NCCC received the response they had been wanting from the regulatory agency.
Causing trouble pays off
As the NCCC continues to demand attention in this way, it has found that this encourages many organisations to provide a dedicated contact point to handle complaints from the NCCC.
Advice
Muhammad Sha'ani b. Abdullah, Chief Executive of the NCCC, offers advice to other organisations wishing to start a similar complaints centre. What are the challenges?
'Lack of resources is still a challenge, to provide a prompt and effective service to consumers in need.'
Why is setting up a complaints centre worthwhile?
'An increasing number of consumers are now willing to come forward to demand resolution to their complaints.'
'Meanwhile, an increasing number of traders are becoming aware of their responsibility to their customers with regard to good service provision as well as engaging with customers who complain.'
'There has also been positive support from the government in promoting the role of the NCCC among all the government agencies to educate front-line government personnel to be proactive in consumer complaints handling.'
Have you got any advice for other organisations who want to set up a similar complaints line?
'Complaints line services must empower consumers themselves and social advocacy groups to deal with ordinary complaints directly with service providers. This helps complaints services being overwhelmed with complaints.'
Read more...
- Visit the NCCC website (English and Bahasa Malay).
- Watch consumer education videos on the NCCC site.
