CUSTOMER complaints are on the rise, with the cost-of-living crisis contributing to customers disputing even small amounts, according to the BVRLA.

The number one cause of dissatisfaction? End-of-contract damage charges. This is an area that brokers need to pay attention to as under Consumer Duty regulations you must ensure you are giving customers the right information at the right time, and that they understand at the beginning of the contract what they are signing up to. 

But focusing on this area isn’t simply about compliance, it’s an opportunity to improve customer loyalty.

Customer retention is such a critical thing, and at this end of contract stage everything can be won and everything can be lost.

Brokers will typically refer customers to the BVRLA Fair Wear and Tear guide but the challenge, according to Simon, is that it “stops at what is acceptable”, and then when the customer moves into what is not acceptable they’re in “new territory”. 

“The process of the customer understanding their liability is a complicated process. And that doesn’t matter whether they are renting a vehicle or leasing a vehicle, it doesn’t matter if they’re a consumer, or if they’re a corporate, they still all face the same challenge,” he said. 

In his experience, when customers get the opportunity to get a repair quote they find that the leasing company charges are “pretty reasonable” and they can accept the situation. 

“It’s the not knowing, and not being able to decide one way or the other that makes the customer complain,” he said. 

Technology can help with this. Drivers can use the Wondle app to scan damage on their vehicles and find out if it’s fair wear and tear or not. If it’s not, they can find out what the penalty charge could be, and decide whether it’s cheaper to repair the damage before the vehicle is returned. 

Using the app leads to a 25% reduction in complaints, according to Simon. 

“We’ve not done anything other than tell them what was going to happen in advance. But that understanding and that explanation seems to reduce the shock that makes people complain,” he said. 

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