In August 2023, a local automotive dealer, CarTimes Automobile (CarTimes), faced an unfortunate incident involving an employee’s alleged misappropriation of funds from a customer.
According to CarTimes, their employee allegedly misappropriated payments totalling $67,000 from a customer. The customer traded in her Honda Shuttle, valued at $105,000, to purchase a new Toyota Yaris Cross for $172,000. The salesman went to the customer’s house and provided quick response (QR) codes for payment transfer. However, the money went into this personal account - $67,000 in total.
When the company realised that something was amiss, they reported the matter to the police. The salesman was terminated. CarTimes also enhanced their financial controls to prevent any future occurrences. Interestingly, despite ongoing investigations, CarTimes decided to honour the deal with the customer which was unusual. In most cases, businesses are likely to freeze transactions until investigations are concluded. But CarTimes took a different stand. What led to their position?
To honour the deal, CarTimes activated its fidelity insurance, which was $100,000. However, the amount exceeded the insurance coverage, which was $172,000. CarTimes bore the loss of the remaining $72,000.
Mr Eddie Loo, CarTimes founder and managing director, said: “Even if the loss exceeds our coverage amount of $100,000 per customer, we will bear the loss because keeping our customers’ trust is more valuable to us. We cannot continue with our business if our customers no longer trust us.”
Mr Eddie Loo added that CarTimes’ priority was to fulfill their commitment to the customer who had come to them to purchase a car. Despite also being victims, they remained resolute in honouring the deal entirely.
By prioritising the customer, CarTimes went the extra mile and showcased the qualities of a business accredited with CaseTrust.
Established in 2001, CarTimes has been accredited under the CaseTrust-Singapore Vehicle Traders Association (SVTA) Accreditation Scheme for Motoring Business since July 2009. The scheme was co-developed by CASE and SVTA in 2008.
Since the incident, CarTimes said that they received positive feedback from both customers and industry players. Customers valued their transparency and commitment to resolving the issue, while industry players recognised their dedication to ethical practices in challenging circumstances.
Notably, CarTimes promptly extended assistance to the affected customer and honoured the deal even before receiving insurance coverage payouts.
According to Mr Loo, accreditation with CaseTrust has played a pivotal role in fostering positive outcomes for the business. He believes that it has significantly influenced the overall consumer-friendly business landscape and contributed to smoother transactions.
“CaseTrust accreditation is a testament to our commitment to fair trading and consumer protection. It helps build confidence among our customers and reinforces our reputation as a trustworthy and reliable automotive dealer,” said Mr Loo.
Reference: Zane Ang | CASE - The Consumer | Mar 2024
