Deescalating and Diffusing Disgruntled Customers

In the wake of the tragic loss of UnitedHealthcare's CEO at the hands of a young man who was reportedly angry at the insurance industry and "corporate greed," businesses and executives are closely monitoring threats from customers and shoring up their security vulnerabilities.

Irate customers are a challenge across all industries, but the financial services sector faces heightened intensity due to the unique combination of money and the inherent complexity of financial products and services. This is particularly true during times of economic downturn. Rising inflation, increased interest rates, and stagnant wages often strain household budgets, leaving individuals struggling to meet their financial obligations. For many, these pressures result in mounting debt, depleted savings, and a heightened sense of uncertainty about the future.

In mid-December a Texas man was arrested for allegedly threatening Capital One executives via email over a disputed debt. According to court documents, 34-year-old Taylor Bullard expressed frustration, claiming he had already paid the $543 owed and criticized the bank for continuing to pursue the payment.

"This debt is not valid. I paid (Capital One) several times for this same account," Bullard wrote in a December 12 email. He escalated the threat, stating, "Call me before I show up to one of their locations with a machete and gasoline."

In most cases, there are two types of angry customers. The first type of angry customer is where you or someone in your company has done something wrong that has had a negative effect on your customer. The second type is where you haven't. This type of angry customer is generally going to be someone who is experiencing financial problems. They use their anger, aggression and rudeness as a tactic to deflect you away from the topic of the money.

It's a good time to incorporate key elements in your employee training program that includes how to handle irate customers. Following are some tips and considerations when developing your training plan:

Expand Your Training: Equip all customer-facing staff with the skills they need to handle irate clients. That includes everyone who interacts with customers. In addition to your frontline and contact center staff, don't forget to train Mortgage Officers, Loan Officers and Underwriters on how to deal with irate clients. When speaking with customers, these employees often need to ask intrusive follow-up questions and/or decline loans. Train your team to tailor their explanations to the customer's knowledge level, using simple terms for inexperienced clients and more complex details for those who are sophisticated. By proactively explaining financial changes, such as rising interest rates, with empathy and patience, your team can help customers understand their situation, reducing confusion and potential frustration.

De-escalation Techniques: Regular training on how to defuse tense situations can empower employees. De-escalation techniques include, but are not limited to, the following:

• Remain Calm: Remaining calm under stressful situations involving assertive or aggressive customers can be difficult. Try not to take their behavior personally - remember that you don't know what else may be happing in this person's life.
• Listen: Pay attention to what the customer is saying and try to understand their needs. Avoid interrupting them and ask appropriate questions.
• Be Empathetic: Using the appropriate language, demonstrate to the customer that you care about their situation, promise to take action, and update them promptly.
• Offer Solutions: The customer is looking for solutions to their concerns. Don't overpromise, be willing to involve management as it demonstrates that you are serious about finding a resolution. Once you have committed to a resolution, make sure to follow it through.

Role-Playing Scenarios: Practice handling difficult customers to build confidence and preparedness.

Stress Management: Equip staff with strategies to manage their own stress during challenging interactions.

Dealing with irate customers, diffusing the situation, and solving their problems is a critical element of customer service that is essential to the safety of your staff and to safeguard your institution's reputation.