Trust in ADR: what do people expect? - PowerPoint Presentation

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Trust in ADR: what do people expect?

Dr Naomi CreutzfeldtESRC Research Fellow /Lecturer in Law, University of Westminster Centre for Socio-Legal Studies, University of Oxford (Associate)Slide2

outlinemy ombudsman research projectpeoples expectations of ombudsmen /ADRa cultural element to trust? justice systemsconclusions Slide3

background ADR in the EUConsumer complaints about goods and serviceCourts are overrun and take too long, unpredictable in cost and outcomeAccess to justiceConsumer ADR directive (2013/11/EU)ODR regulation (524/2013)What kind of justice does ADR provide?Slide4

Research questions1. What explains users' perceptions of fairness and trust vis-a-vis ombudsmen institutions?2. How do cultural frameworks influence citizens use of ombudsmen?Slide5

Impact and legitimacy of ombudsmen in Europepeoples perceptions of fairness & trust in informal justice 14 private and public sector ADR bodiesGermany, UK and FranceSlide6

PARTICIPATING OMBUDSMENSlide7

methodologyConsumer satisfaction survey sent out by ombudsmen to their customersby post by email - online linkSeptember 2014 – March/May 2015UK sample 1,025German sample 1,442France sample 413Slide8

A few survey questions Could you briefly state, in your own words, what the problem was you contacted the Ombuds service about?What did you expect the ombuds to do for you?I feel that I have spent much time and effort on trying to sort out the problem before approaching the ombudsman. Slide9

A few survey questionsWhat was your impression of the staff when you first contacted the ombuds?HelpfulUnderstood my problemSeemed to know what they were talking aboutTreated me with respect and courtesySeemed trustworthy / seemed to act with good intentSeemed interested in hearing my storySeemed unbiased and neutralWere unhelpfulNot sure, can’t rememberSlide10

A few survey questionsI feel a moral obligation to follow the ombuds recommendation I have confidence in the ombuds The ombuds acting according to the law Likert scale response (5 point scale)Slide11

ResultsPublic sector ombudsman – seeking accountability

‘… address the issues; make them accountable for their mistakes so that the same problems didn't arise again; […] insist that questions were answered and not just ignored.’ ‘… ask for support to ensure that the highlighted problems are corrected to safeguard others.’

…conduct a thorough investigation into my concerns so that lessons could be learned.’Slide12

ResultsPrivate sector ombudsman – seeking individual redress

‘…force [company] to make the payments owed promptly, with a small compensation amount’ ‘…act on my [the consumer's] behalf , hopefully with some 'teeth' or power behind them, to force the [company] to finally do what ANY self-respecting company trading within the UK should do, i.e. Treat its customers with SOME level of service & respect.’ Slide13

FOUR NORMATIVE ROLESSlide14

projects comparative findingsExpectations of public and consumer ombudsmen are very similar!The data shows that citizens’ expectations of the ombudsmen go beyond their responsibilities. Expectations change, narratives change throughout the complaint journey.It’s about managing expectations from the outset.Overarching approach of best practice for establishing trustworthy behavior.Slide15

Common stages in the complaint processFirst contactThe procedureThe outcomeThe overall satisfactionSlide16

Results from the UK sampleFirst contact:Users have too high expectations from the outsetIt is very important how ombudsmen staff treat people at initial contact Slide17

Results from the UK sampleThe procedure:Respondents in public schemes were far less likely than those in private schemes to be satisfied with how their cases were dealt with, almost 60% very dissatisfied.The majority or respondents were happy with the method of communication they used to contact the ombudsman 80% very happy.Slide18

Results from the UK sampleThe outcome:Stark differences between public and private schemes, with respondents reporting a favourable outcome for only 11% of public cases, compared to 53% of private cases.Having obtained an outcome, the majority of respondents (over 60%) were either ‘very willing’ or ‘fairly willing’ to accept it. However, contrasting public and private schemes highlighted huge differences; those with public cases are far less likely than those with private cases to accept the outcome. The majority of respondents felt the ombudsman was acting according to the law. Users of private ombudsmen reported greater levels than those of public ombudsmen.Slide19

Results from the UK sampleOverall satisfaction:The majority felt that the procedure was either ‘somewhat fair’ or ‘very fair’ (60.4% overall). Conversely, around a quarter felt the procedure was ‘somewhat unfair’ or ‘very unfair’. Contrasting public and private schemes once again showed very significant differences in responses and far more negative responses from those in public schemes compared to private schemes. Overall 57% of those in public schemes felt the procedure was ‘somewhat unfair’ or ‘very unfair’. This compared to a quarter of those in private schemes.Slide20

This section will focus on the private sector ombudsSome examples from the data Case study energy sectorSlide21

Some examples from the sample of a consumer's complaints journey Get justice and an apology for me I expected the xxx to fully investigate the situation and help us rectify the problem. I hoped that they would have enough power to be able to make the bank review its customer service. I hoped they could get both companies to actually listen and properly investigate what was causing the delays so someone could take responsibility and finally sort it out, rather than just expecting me to pay money that I didn't actually owe at all. Neither company would listen to me and just kept telling me it was the other company's fault.Slide22

Some examples from the sampleI do not see myself as a negotiator and have little experience of the financial world. I see the xxx as an independent body who I trusted to act on my behalf. To contact xx about their terrible service, demand the situation be rectified and my money given back to me. I have been on hold with xxx for 40 minutes on many occasions and in the end I realised that I haven't got time for it to go any longer. All I was hoping for the Ombudsman to do was to tell them to close my account - SP has ignored all of my emails and messages on Facebook so I had no other means of contacting them. SP owed me £270. Slide23

A case study of the energy sector in three countriesSlide24

energy ombudsmen in my studySample size: 242

Sample size: 322 Sample size: 421Slide25

I feel that I have spent much time and effort on trying to sort out the problem before approaching the ombudsman.90,5% (OS:E - UK)87,6% (SchliE - Germany)96,8 % (MedE - France)Slide26

Findings in the energy sector - 1Do people use the ombudsman more than once?First time dealing with an ombudsman:

YesNoGermany

288

34

France

203

23

UK

341

80Slide27

Findings in the energy sector - 2How do consumers first contact ombudsmen?Slide28

Findings in the energy sector - 3How do people communicate during the procedure?Slide29

Findings in the energy sector - 4Duration of a case 

How long did you expect the procedure to takeHow long did it actually takeUK

1-3 months

279 people (67,6% of the UK sample)

1-3 months

201 people (49,8% of the UK sample)

France

1-3 months

127 people (59,3% of the French sample)

1-3 months

105 people (49,5% of the French sample)

More than 3 months

100 people (47,2% of the French sample)

Germany

1-3 months

194 people (61,2% of the German sample)

Less than 1 month

168 people (52,5% of the German sample)

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Findings in the energy sector - 5Confidence in the ombudsman?Does the ombudsman act according to the law?How fair are the procedures?Was the outcome in your favour?

Germany 78,3% France 71,3% UK 69,5%

Germany 83,4% France

84,9% UK 81%

Germany

67,4%

France

50,9%

UK

75,1 %

Germany

81%

France

90,7%

UK

68,4% Slide31

perceived trust and fairness in an ombudsmanProcedural justice ‘what motivates people to obey the law? (Tyler 2006)opportunity to express oneself ‘voice’receiving trustworthy consideration ‘being heard’open minded neutral forumbeing treated in a respectful manner Slide32

Other factors to consider…difference in ombudsmeninitial motivation and reason for contactimpact on personal lifedurationtype of contact with ombudsman stafftype of complaintSlide33

Some demographicsA typical respondent to my survey (1,114 UK respondents):MaleEducatedMiddle-classWhite Slide34

value of the ombudsman modelprovide a service to consumers, business, regulatorsprovide fast and efficient solutions to changing consumer problemsflexible in their procedural approachexpectations management is key to consumer satisfaction (predictable outcomes)standardized training Slide35

designing a DR system What form of justice is ADR providing and what do consumers expect?meet consumers needs and expectationsprovide just outcomesput consumers at the center create a trustworthy systemSlide36

conclusionsIt will be a challenge to avoid consumer confusion.benchmark consumer expectations:amend ombudsman procedures to focus more on expectations management from the first contact: consumer at the centerkeep consumers informed regularlyoutcome is more likely to be acceptedSlide37

Thank you.https://www.law.ox.ac.uk/trusting-middle-man-impact-and-legitimacy-ombudsmen-europe N.creutzfeldt@westminster.ac.uk