Volume II, Issue 5, May 13, 2013
Full Disclosure in Times of Trouble
It was 3:30 a.m. and someone was banging on our door. A bit dazed and confused, Frank and I went to the front door… no one was there. We peered through the blinds of the window facing the street and saw some commotion around my car, and then saw a SUV drive away. Upon venturing out, my heart sank as I surveyed the damage done to my Lexus IS300.
As the police approached, the driver’s wife also returned to the scene in another vehicle. Their damaged vehicle was in the middle of the road with blinkers flashing. I got all the necessary insurance and contact information, and started the claims process the following morning. Much to my surprise, I learned that the offending driver had not fully disclosed their insurance situation… they had no coverage while using their car for commercial activities (they were throwing papers on a paper route).
Also, my insurance adjuster did not fully disclose that I had to accept salvaged parts when using their recommended preferred repair shop… I discovered this on my own. Fortunately, I know the law.
As you can imagine, I am frustrated that I am the one dealing with the dishonest practice of “non-disclosure“. My insurance agent, who is an advocate for me, is the only reason I will stay with my current auto insurer… which is a lesson all in itself: your sales force and/or account managers should be advocates for their clients, which by-the-way are your clients!
Regulators today have little patience for organizations who do not fully disclose business practices and procedures to consumers. Deception in any form will catch up with you. You may find yourself under a “Memorandum of Understanding”with the OCC, being fined by a governing agency, or losing customers to competitors… it is not worth it! Don’t compromise stakeholders or shareholders for a momentary gain, be transparent and operate with full disclosure.
By the way, I’m looking for a pre-owned Lexus ISF in excellent condition.