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If you’ve tried everything to get a fair deal from a company that has failed to give you what you’ve paid for, and they’re still not budging, you might have a secret weapon to use against them… their own customer agreement.
Most customer agreements contain language defining how disputes should be settled. These days, contracts often specify someplace other than a courtroom as the destination of last resort... mediation or arbitration.
For example, here’s the pertinent passage from the WildBlue Internet Customer Agreement:
Section 8: General - Any controversy or claim shall be settled exclusively by arbitration, and administered by the American Arbitration Association under its Commercial Arbitration Rules. Any such arbitration will be held in Denver, Colorado or the location of the residence where the WildBlue Equipment was installed.
This paragraph states that any disputes must be settled by arbitration, rather than in court. Many companies have similar language in their agreements and this is very much to your advantage. If you are not able to reach an agreement with them, you can demand arbitration in your local jurisdiction. Arbitration would certainly cost the company you’re dealing with more than a few thousand dollars… and can cost you almost nothing, except your time.
By demanding arbitration or mediation as specified in the agreement, you have instantly raised the cost to the company of them not giving you what you paid for. Suddenly, paying you the refund you’ve asked for might seem an attractive option to a costly and time-consuming session with an arbitrator who may very well decide that you were right all along.
Why don’t we more about this? Most consumers don’t realize how this section of a company’s agreement can work in their favor and companies certainly don’t like to advertise it.
So, next time you’re faced with an intractable customer service situation, check the customer agreement. If arbitration or mediation is required... send a registered letter to the company citing the arbitration requirement. Give them a deadline of thirty days to respond. My bet is that you’ll hear from them much sooner than that… explaining how they’ve decided to settle with you after all.