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December 11, 2002, 8:00 a.m.
Kudos for the Regulators
A business referee can be a consumer’s best friend.

know, I know, we are always complaining about regulations and regulators. But in the process of criticizing we often overlook the value that regulators add when they play the role of referee between corporate America and the American consumer.



  

I just suffered through one of those experiences. I'd like to share it with you — just in case you find yourself in a similar predicament.

About three months ago I was flying from Savannah, Georgia, to Saginaw, Michigan. I bought my ticket through Expedia and paid $345.49. Unfortunately, e-tickets are not always available so I had to use paper tickets. As luck would have it, I forgot to take the paper tickets with me to the airport. When I attempted to check in, I found out that I would have to pay full fare and then file a lost ticket claim with the airline. I didn't think much of this requirement at the time so I put up the $1,600 for the ticket.

When I returned from my trip to Michigan, I was told by the first airline that they couldn't refund the $1,600 because the other airline had the money. The second airline said they couldn't issue the refund because they needed a lost-ticket application. And since the ticket was from another airline, they couldn't help me either. I went back and forth from airline to airline with no one able to help me. I even went back to Expedia. After speaking with two representatives, they assured me that they couldn't help either. Meanwhile, I wasn't too happy about being out $1,600.

So where was my white knight? As a last resort, I surfed the web and came up with an appropriate contact at the Department of Transportation. I sent a detailed letter describing my situation, expecting that my request would get filed in the "G" file. To my surprise, a thoughtful response was quickly forthcoming.

Now it gets interesting. The respondent indicated that the Department of Transportation couldn't take action; however, he did say they would post my complaint on their bulletin board of customer complaints. Airlines review those postings, he said. Once again I was depressed. Good-bye $1,600.

But wow was I wrong about the influence that bulletin board had on the parties of interest.

First I got a call from a big wig at Expedia with an accompanying letter assuring me that I would get all the help I needed to resolve this situation. Then, two days later, I received a letter from the air carrier that issued my ticket indicating that my $1,600 (less a service charge of $100) would be credited to my account. Sure enough, I got the credit just like they said.

So, for all my ranting and raving about government interference in the free-market system, I'll be a lot more sensitive in the future about saying things that may very well undermine a consumer's ability to access a resource that can be helpful in resolving a business dispute.

Kudos to my new friends at the Department of Transportation.

Tom Nugent is Executive Vice President & Chief Investment Officer of PlanMember Advisors, Inc., and an investment consultant for Wealth Management Services of South Carolina.

The Latest from Tom Nugent:

Taxes: What the Hell Happened? 9/26

Secrets of the Housing Boom 9/16

One from the Wine Cellar 9/5

Full Nugent Archive

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