The first thing every Reported Company (a business who has had a complaint filed against them) needs to know is that ERAI understands there are two sides to most, if not all, disputes. If a complaint has been filed against your company, it is important that you communicate your position and/or concerns to our Complaints Department. It is ERAI policy to verify information relative to a complaint. Understanding the services offered by ERAI and our philosophy and procedures should eliminate many of your reservations. This section of the ERAI website will address frequently asked questions posed by Reported Companies, as well as common misconceptions and select company procedures.
FREQUENTLY ASKED QUESTIONS
Who is ERAI?
ERAI, founded in 1995, serves as a trade association with an emphasis placed on education and information sharing relative to the Independent and Franchise distribution industry, as well as the OEM Manufacturing, Component Manufacturing, Government Manufacturing, law enforcement and federal law enforcement communities. Our primary objective is to collect and distribute information pertaining to problem transactions stemming from the purchase and/or sale of computer components including, but not limited to:
- The sale of counterfeit and/or substandard parts
- Fraud or wire fraud
- Checks returned for insufficient or uncollectible funds
- Refused COD orders
- Bankruptcy filings
- Unpaid or grossly overdue invoices
- Misrepresentation of goods (i.e. selling used product or equipment as new)
- Unscrupulous business practices
- Failure to adhere to the terms and conditions of a purchase order
- Contract disputes
We gather, verify and investigate complaints submitted to our offices and subsequently share this data with our participating Members, Affiliates and Participants in an effort to alert them to potential problems and/or risks and to aid them in their investigations and in making more informed business decisions.
Why would someone file a complaint with ERAI?
Complaints are filed with ERAI for a variety of reasons. The most common complaint types are mentioned above. When a complaint is filed, we notify the Reported Company in writing (whenever possible) and provide them with a summary of the complaint that was submitted based on the Reporting Company's account of the dispute.
Our experience shows that most companies do not file a complaint with ERAI unless they feel they have exhausted their efforts in working with the Reported Company and are unsuccessful in settling the problem and/or debt with them directly. The Reporting Company is then required to provide ERAI with documentation to support their claim. The Reporting Company filing the complaint typically contacts ERAI for one of two reasons: They would like to warn other ERAI subscribers about their negative trading experience with a company or they want ERAI to mediate a resolution to a problem transaction. In such cases, ERAI would only report the details of the dispute if we can confirm and/or substantiate that a wrongful, unethical, unlawful, and/or unprofessional act has taken place and a resolution cannot or will not be reached.
Do you need to be a Member, Affiliate or Participant of ERAI in order to file a complaint?
Not necessarily. ERAI may take complaints from companies who are not paid Members. However, we do reserve the right to refuse service and/or to charge a fee depending on the nature of the complaint, the frequency with which a Reporting Company is contacting us for assistance and/or the amount of time it will take to process a case. It is always best to contact our Complaints Department for a free consultation at which time we can tell you if and how we might assist you, as well as if a fee will be charged.
Does ERAI substantiate the complaints that are filed?
YES! When the Reporting Company files a complaint against another company, they are required to provide documentation to substantiate their claim such as, but not limited to: purchase orders, invoices, proof of payments, tracking records, test reports and any other information relative to the dispute that would aid in our processing, investigating and/or reporting of the incident.
How is a complaint processed?
An ERAI representative will review the filed complaint, the required documentation is obtained and a case file is opened. A letter is sent to the Reported Company summarizing the complaint filed and the Reported Company is asked to, but is not limited to, respond, confirm and/or dispute the complaint that was filed. In an effort to ensure that a Reported Company has received notification of the complaint, we will make several attempts to reach them by phone, fax and/or email. If we do not receive a response to our communication attempts, the information supplied to ERAI will likely be posted in an ERAI Alert based solely on the undisputed account submitted by the Reporting Company.
What happens after the complaint is processed?
More often than not, complaints that remain unresolved and those that pertain to undisputed unresolved debts will be released to our active subscribers. Companies participating in our services choose to receive ERAI Alerts on a real-time, daily or weekly basis. Companies that choose to receive ERAI Alerts receive notification of complaints upon ERAI completing our investigative/verification process through "real time reporting".
When the Reported Company's name and a copy of the incident summary are added to the ERAI Reported Company database on the ERAI Website, an ERAI Alert is distributed. This database is frequently referenced by our subscribers prior to doing business with potential customer(s) and vendor(s). Our database will be updated if the status of the complaint changes; however, it is the Reported Company's responsibility to notify ERAI if there is a change in the status of the dispute. If a Reported Company's account and/or situation is resolved, it will be listed in our database as "resolved". Reported Companies are encouraged to contact the ERAI with any and all updates to ensure the accuracy of the information available to our Members.
What is the difference between an ERAI Alert and a Dispute Alert?
For many years, ERAI took the position if a complaint could not be substantiated and verified, it could not be reported. Often times, cases were dismissed based on a minor technicality resulting in valuable data “slipping through the cracks”. Thus, we added a new feature titled: Dispute Alerts.
Currently, Members receive ERAI Alerts in real time, daily or weekly. Cases listed in an ERAI Alert must be documented and verifiable. Dispute Alerts were created to inform Members of situations that might not meet our Complaint Processing Policy and Procedures requirements but contain important information worthy of sharing. If ERAI finds there is insufficient or inconclusive evidence to substantiate a formal complaint (a product failure was reported outside of an agreed upon time-period, a test report could not be provided to substantiate a product nonconformance, the terms and conditions of a sale were violated by both parties, etc.), Reporting Companies may opt to release details of the case using the Dispute Alert option. In order for a Dispute Alert to be distributed, the Reporting Company must agree to be identified in the incident summary, unlike ERAI Alerts where the Reporting Company is afforded anonymity. Dispute Alerts also permit both companies involved in the dispute the opportunity to share their side of the story.
Dispute Alerts will be distributed to all Members, Affiliates and Participants in the form of an email just like standard ERAI Alerts. It is also then possible that a Member may be involved in a dispute and that their company name will be found in the disputes section. Membership to ERAI will not be revoked for a dispute.
Can being listed on an ERAI Alert be harmful to a business?
YES! ERAI does not tell our Members, Affiliates or Participants who (or not) to do business with. Our responsibility is to provide them with data they can use to make a more informed business decision. Obviously, if a company is listed on an ERAI Alert, it is likely to have a negative impact. It is always best if two parties can work together to resolve their differences without the situation escalating to the point of requiring third party involvement of any kind.
How long will the complaint remain on the ERAI website?
Resolved Complaints (regardless of type):
1st complaint: Scheduled release date is 1 year from date of resolution.
2nd complaint: Scheduled release date is 2 years from the date of resolution.
3rd complaint: Scheduled release date is 3 years from the date of resolution.
4th + complaint: Scheduled release date is 5 years from the date of resolution.
Unresolved Complaints (regardless of type):
1st complaint: Scheduled release date is 5 years from the report date.
2nd complaint: Scheduled release date is 7 years from the report date.
3rd + complaint: No release date. Complaints remain on the website indefinitely, unless resolved.
If the complaint filed against a company is resolved, it is the Reported Company's responsibility to contact ERAI to ensure their account is updated in a timely manner and to make certain the appropriate release date is scheduled.
Will a company still be subject to an ERAI Alert even if they pay an outstanding, unresolved debt?
If an unresolved debt pertains to a past due invoice, NSF check or any other undisputed unresolved debt, then the answer is YES! Once a complaint is filed with ERAI, even if the Reported Company pays the unresolved invoice immediately, ERAI will report the debt. If payment is received prior to the distribution of our Alert, we will note payment was received and, if applicable, it will be posted as 'paid in full'.
Is ERAI a collection company?
NO! The ERAI is not a collection company. We do not attempt to collect on past due accounts and we do not work on a commission basis if monies are obtained by the Reporting Company and/or an outside collection agency hired by the Reporting Company. The ERAI is an information services provider. We collect information relative to a company's trading experiences, which includes tracking payment histories and make this information available to companies who are subscribers to the ERAI service. These companies then use this information to make more informed business decisions.
Will ERAI work with me to settle the complaint that was filed?
If the Reported and Reporting Company are willing to work together to settle a dispute, if asked, ERAI will aid in that process. However it is important to note: offering a settlement is no assurance the information obtained and/or verified by ERAI during this process (including the details of settlement offers) will prevent the Reported Company from being listed in an ERAI Alert.
Does ERAI offer preferential treatment to paying customers?
It is sometimes presumed if a complaint is filed with us by one of our Members, Affiliates or Participants, we automatically take their side in the pending dispute. This is a false assumption. Most of the companies that come to us for assistance know and respect ERAI and will quickly discover that ERAI analyzes every problem individually, based on its own merits.
Can I dispute ERAI's findings in an investigation?
YES! In September of 2004, the ERAI created a value-added service called the ERAI Grievance Committee. The purpose of the Committee is to:
- Serve as a sounding board for ERAI when investigating and mediating disputes
- Provide a means by which Buyers and Sellers involved in disputes can obtain a binding or nonbinding third party review.
- Ensure companies who have had complaints filed against them are given an impartial review of their dispute and/or enable Reporting and Reported Companies the opportunity to dispute the findings of an ERAI Investigation through a third party review.
- Work with ERAI to establish policies and procedures which will govern future similar complaints.
Every Reported and Reporting Company can dispute ERAI's findings in an investigation by requesting their case be reviewed by this Committee.
If you have additional questions or concerns or need to respond to a complaint that was filed against your company, please contact the ERAI Complaints Department at 508-746-8475.
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