Consumer Complaints and Third Parties: Determinants of Consumer Satisfaction with Complaint Resolution Efforts

Abstract

This paper explores consumers' satisfaction with the complaint process, using a data set of financial service complaints lodged with a federal agency acting as a third-party complaint mechanism. Contrary to previous studies, we find that 60 percent of consumers were satisfied with the complaint resolution process, and of these over half were very satisfied. Having the problem resolved in their favor, complaining directly (verses being referred), having higher levels of education, using other third parties, being willing to use the service again, and feeling that the service was responsive were associated with being very satisfied with the complaint process.