24 Hoosier Banker March 2015 ALTA Best Practice No. 7 requires that all real estate professionals involved in the real estate process have a complaint policy – not to solve all consumer complaints, but rather to address all consumer complaints. Every real estate professional is first and foremost in the “customer service” business, and dealing with complaints comes with the territory. For some complaints, there is no readily available solution that will satisfy the complaining party. For example the phone rings at 4:45 p.m. on a Friday, and the party on the other end says, “You handled a closing for me back in 2002.” The immediate reaction is to wonder what the problem may be. The caller continues: “I now have a termite infestation. What are you going to do about it?” It is a relief that this problem is not of our making. Previously we might have provided an explanation, hung up About the Author Jonathan Biggs is vice president, director of risk management and education for Investors Title Insurance Company. He oversees risk management functions related to the company’s approved provider system. Prior to joining Investors Title in 2012, Biggs was partner at a firm in Durham, North Carolina, where he practiced residential and commercial real estate law for more than 20 years. He earned a bachelor’s degree from Duke University and a JD from Wake Forest University School of Law. Investors Title Insurance Company is an associate member of the Indiana Bankers Association and an IBA Preferred Service Provider. the phone, and not given it another thought. Now, in order to comply with ALTA Best Practice No. 7, we need to document these calls as consumer complaints and refer the caller to the appropriate pest control agency for assistance. In this example, we were not in a position to solve the consumer’s complaint; furthermore, the complaint was not related to our professional services provided at closing 12 years ago. Nonetheless we are now required to document the complaint and our efforts to assist. ALTA Best Practice No. 7 – Adopt and maintain written procedures for resolving consumer complaints. Purpose: A process for receiving and addressing consumer complaints helps ensure that reported instances of poor service or noncompliance do not go undiscovered. What is required? Standard procedures for logging and resolving consumer complaints help ensure that consumers provide the company with sufficient information to understand the nature and scope of the complaint. The procedures to comply with ALTA Best Practice No. 7 are as follows for consumer complaint intake, documentation and tracking: • Develop a standard consumer complaint form that identifies information that connects the complaint to a specific transaction; • Set a single point of contact for consumer complaints; ALTA Best Practice No. 7: Addressing Consumer Complaints DIRECTORS / SENIOR MANAGEMENT The American Land Title Association (ALTA), a title insurance and settlement company, gives guidance to help ensure the protection of consumers during real estate transactions. ALTA offers seven standards — known as ALTA Best Practices — by which each bank should measure its service providers. In recent months, Hoosier Banker has been featuring a series of articles by Investors Title Insurance Company outlining the seven best practices. This ALTA Best Practice No. 7 is the final in a series. Prior best practices featured were: Licensing; Escrow Accounts: Follow the Money; Information Security – Keeping Secrets From the Backyard to the Boardroom; Do It on Time, and Do It Right; “It Ain’t Over, ’Til It’s Over” and “Just Because ‘Stuff Happens.’”
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