March 12, 1975
Page 6274
COMBAT AND CONSUMER PROTECTION IN MAINE
Mr. MUSKIE. Mr. President, I would like to acquaint my colleagues with two very effective private organizations working for the consumer in Maine. The two agencies, separate but related, are COMBAT in Portland and Northeast COMBAT, Inc. in Bangor.
COMBAT was originally formed 3 years ago in Portland when a group of people involved in Portland's Model Cities program recognized the need for an agency in Maine to help average families with consumer problems. Northeast COMBAT, Inc. was formed in Bangor a few months later and works with the Portland organization on matters of common interest at the state level. While Model Cities helped finance COMBAT in Portland for a time, both organizations rely entirely on volunteer workers and contributions.
These groups have worked on a variety of consumer issues with regional or statewide impact, ranging from regulations on mail-order insurance and milk prices to utility rates. Staff members work at the individual level and behind the scenes, and act as the consumer's representative when necessary to help arbitrate small and large disputes. Northeast COMBAT has also become involved in consumer education by having workshops and courses, and suggesting curricula on consumer issues to local school systems.
Mr. President, to dramatize the effective consumer work being done in Maine, I ask unanimous consent that the history and purpose of Northeast COMBAT, Inc. be printed in the RECORD.
There being no objection, the material was ordered to be printed in tale RECORD, as follows:
NORTHEAST COMBAT, INC: HISTORY AND PURPOSE
In the Fall of 1971, a young radio announcer in Bangor, Maine, started to note increasing calls from listeners who wanted to receive assistance with defective goods which had been advertised on local radio. It was obvious that people were calling the radio station because they knew nowhere else to go for help.
After repeated attempts to assist those consumers, the announcer, John Supranovich, found the same frustration since there was no Better Business Bureau or other mechanism for remedy in the State of Maine. He decided that since Bangor was his home and he was interested in community service, he would try to organize a consumer organization.
THE PLAN
The origins of Northeast COMBAT were very much at the grassroots level, but the primary concern of Mr. Supranovich and the organizers who were recruited was that the stereotyped nature of consumer organizations could not be a part of the new group which they were forming. The original board of directors which incorporated Bangor COMBAT (later changed to "Northeast") felt that to continue conflict was to thwart change. They decided from the beginning that fairness and impartiality would be primary goals, that reasonable behavior would achieve far more for the Maine consumer than aggression and antagonism.
THE DEVELOPMENT AND GROWTH
It also became obvious to the organizers that in order to be fair and responsible, strict professionalism, accurate record-keeping, and theoretical planning would have to be followed. The various components of Northeast COMBAT grew from public need, common sense, wise management, and practicality. It was decided that in order to have a comprehensive program, there would have to be several elements including: Individual Assistance, Public Issue Advocacy, and Consumer Education. Tangentially, the experience gained from all would prepare consumers who volunteered for COMBAT to serve as effective representatives on decision making Boards, Councils, and Commissions.
INDIVIDUAL ASSISTANCE
Probably the most complicated and the most satisfying part of Northeast COMBAT's program has been the Individual Assistance Program (IA). Acting as a Better Business Bureau for all intents and purposes, the IA program has given consumers a place to call or write for assistance with individual problems. The IA program uses mediation to resolve difficulties rather than threat or litigation.
When a consumer calls Northeast COMBAT with a complaint, a volunteer caseworker takes down all the information necessary in order to make a determination as to whether there are other remedies called for. When appropriate, NE COMBAT refers a consumer to existing agencies for assistance, for legal advice if the complaint so indicates, or to store management if the consumer has not taken all the steps possible toward quick resolution. Follow-up always accompanies such referral in order to insure that the consumer receives assistance. The complaints are retained and cross-filed with businesses for review and possible trends.
If information and referral is not sufficient, NE COMBAT gives direct assistance, contacting the business in question to see what the other side has to say. In cases where the consumer is patently wrong, NE COMBAT does not hesitate to say so. Experience has shown that often consumers try to use NE COMBAT for unfair retribution when such is not warranted.
NE COMBAT maintains a close working relationship with such agencies and offices as: The Chambers of Commerce, Attorney General's Consumer Fraud Division, Federal Trade Commission, Business Associations, Legal Assistance, Legal Referral Offices and local attorneys, and many others.
NE COMBAT offices were first located in the Unitarian Church of Bangor and, as they expanded, in donated space provided by the Penquis Community Action Program. There is only one incoming telephone line upon which complaints are received and assistance given. That telephone is available for "in" calls for only 20 minutes out of every three hour block since most of the time "out" calls are being made for information and resolution.
Cases received are categorized by industry, nature of complaint, and the effectiveness of both I & R and casework assistance.
In the first three years of its existence, the following is NE COMBAT's record in actual dollars returned vs. expenditures for all phases of operation.
[Table omitted]
In other words, the net return of actual cash to consumers has exceeded the expenditure of cash by thirteen times.
DEFINITIONS
Money returned – actual cash refunds (including mail order, record companies, retail sales, etc.) The figures do not include cash value of exchanges or service without charge. Additional car repairs, for example, are not counted and car repair cases account for better than 30% of our caseload. It would not be out of line to increase the cash return by two or three times the stated figures if such cases were assigned value.
Active cases – those cases which required direct contact with business or others on behalf of the clients.
Information and referral (I & R) – cases where either no action is requested or indicated, simply information, and cases where referral seems to be more appropriate. Follow-up on such referrals often leads to a change in status of the case to ACTIVE if the agency to which the client was referred cannot or will not assist.
Budget – total cash spent by NE COMBAT in all phases of operation. This includes in-kind match on work/study people, VISTA support costs, purchase of equipment (typewriter, file cabinet, etc.), consumables, mailing, and telephone.
Note: In January 1975 ACTIVE CASES received increased by over 400 % over what they were in January 1974. The first two weeks of February 1975 saw more cases received than were completed in January 1975. I & R showed a like increase.
PUBLIC ISSUE ADVOCACY
From time to time public demand, timely issues, and casework trends indicate the need for extensive campaigns. At that point, NE COMBAT finds itself in the position of being the only recognized advocate for the consumer. If a great many consumers can be assisted through such a campaign, and if resources, volunteer and financial, allow, NE COMBAT takes on the role of public advocate.
In our three years we have formally intervened at two electric rate increase hearings before the Maine Public Utilities Commission. Both times we were saluted by the Commission for our reasonable and professional approach although all who worked on such interventions were volunteers (lay people and professionals).
Over the past two years the efforts of COMBAT have brought the Milk Price Support issue to the fore, resulting in endorsement of both political parties in their platforms of the idea of abolition of such supports. Such a bill is now before the Maine Legislature. One year ago, the legislature would not even consider such an action seriously.
NE COMBAT has also worked hard for reform in: Mail Order Health Insurance, Nursing Home operation and practices, Replevin without judgement, Small Claims Court maximums, Car Repair practices, mobile home standards, and many other issues.
NE COMBAT has been a leader in bringing the cause of the consumer before the public and the decision-makers.
CONSUMER EDUCATION
Northeast COMBAT believes that much consumer difficulty arises from insufficient preparation of the consumer for dealing with a complex and often deceptive environment. For self-help and self-protection to occur, the consumer must be allowed basic education regarding wise buying practices, budgeting, credit, common deceptive practices, guarantees and warranties, insurance, etc.
To that end, NE COMBAT gives much education during crisis situations on the Help Line. More importantly, NE COMBAT has given many courses, seminars, and classroom visits as well as 8-week programs at the YWCA with the assistance of local business and professional people as volunteers.
NE COMBAT has developed suggested curriculum guidelines for school systems with the assistance of local educators and is currently working with teachers, the Curriculum Advisory Committee of the Bangor Education Association, the Superintendent for Curriculum of Bangor Public Schools, and others toward implementation of such a Curriculum.
NE COMBAT has developed printed materials and distributes government and other publications to consumers. All of these efforts are severely restricted by lack of financial resources.
STAFFING
For the first two and one-half years of operation, NE COMBAT had exclusively volunteers. During that time better than $90,000 in free services were given through volunteer man-hours (based on minimum wage of $2.00 per hour).
In the Summer of 1974, NE COMBAT received two VISTA volunteers who could not be a part of the IA function but who provided liaison with clients, the public, and the business community as well as support services which have streamlined, expanded, and improved our services.
In the Summer of 1974 we received a work/ study student from the University of Maine for whom we paid $4.50 per week for about 15 weeks. Later we received a full-time trainee from Work-Experience (Manpower/ Mainstream) who has been trained in consumer assistance. We pay 25% of her salary.
Recently demands have exceeded NE COMBAT's ability to cope with increasing IA requests so a full-time work/study person from the University of Maine has been hired. This has accounted for the dramatic rise in cases handled and success.
FUNDING AND BUDGET
In the past three years NE COMBAT has received just under $8,000 from private donations, usually under $10 each, and two small contracts from OEO (State). Since NE COMBAT does not know where the next dollar is coming from, or if, they have used incredible husbandry and wise management of funds to the extent that half of the total amount received is still available. This has been necessary since there is no guarantee that even money for office operation will be forthcoming.
GENERAL IMPACT
Individual assistance – stated on page 2
Advocacy – excluding direct impact of issue advocacy, consumerism has been established as a respected movement in Maine through NE COMBAT's reasonable and considered approach. Awareness of consumers, business, government, and others has been accomplished to the point that much institutional and attitudinal change has taken place.
Education – hundreds of consumers have been assisted and educated directly in programs and classes as well as through individual counseling. Thousands have benefited from media efforts, regular Public Broadcasting and commercial programs and features presented by COMBAT volunteers.
Courts and attorney burden – COMBAT intervention and arbitration has effectively screened many petty and bothersome cases which could have wasted the time and resources of the already strained legal system. NE COMBAT regularly receives referrals from reputable attorneys.
Relief for businesses – once a consumer has set his or her mind that injustice has occurred, it is very difficult for a vested interest to convince him or her otherwise. As an independent body, NE COMBAT is able to look at situations objectively and counsel the consumer. In many instances, the consumer will listen to COMBAT even though he or she has rejected like information and advice when it came from the business.
Acting in such a role, NE COMBAT saves local businesses much staff time, paperwork, possible legal action, and public discredit by angered consumers through its efforts to mediate quietly and resolve with minimum disturbance.
Relief for government – increasing demands for protection leave the government with a need area which is unfilled and which would be costly to develop programs to fit. NE COMBAT has provided such a human service after careful and very effective development at no cost to local, state, or federal agencies and the taxpayer.
RECOGNITION OF NORTHEAST COMBAT
The organization has been recognized by state, federal, local, and private groups for both its programs and its methods.
In addition to public recognition of COMBAT and kind comments made by both business and political leaders in reference to the achievements of the organization, the founder and volunteer director of three years, John Supranovich, has been recognized for contributions to the community through Northeast COMBAT and other volunteer work.
In 1972 Mr. Supranovich received the Volunteer of the Year Citation from the National Center for Voluntary Action in Washington, D.C. The award, given for his work with Northeast COMBAT, was the only award given to someone from Maine and one of only 75 nationwide.
In 1975 Mr. Supranovich was honored by the Bangor Jaycees as The Outstanding Young Man of the Year. An award such as this from a group made up of young business professionals to the leader of a consumer group says much about the success and methodology of Northeast COMBAT and the confidence it has developed.
SUMMARY
Northeast COMBAT, Inc. can stand easily as a perfect example of effective, responsible, and constructive citizen action. The work that has gone into building a strong and respected organization from human need as a beginning and meeting that need as an end, shows that commitment and sacrifice combined with energy and wise management plus fiscal restraint can provide meaningful services at reasonable cost while retaining and encouraging confidence between traditionally antagonistic factions.
Alumni volunteers from Northeast COMBAT now live in Florida, New Mexico, Oregon, Arizona, and other states. When they write home, they often remark, "Boy, they really need a 'COMBAT' out here."
Northeast COMBAT could and should stand as the perfect model for a program which might help to restore consumer confidence in the economic system and break down barriers between business and the consumer.