California sting operation emphasizes importance of doing the right thing

Jan. 1, 2020
When times are tough and competition is at an all-time high, it's critical to remember what our businesses are built on and not get swayed into compromising our core values and ethics.
Passwater ABRN auto body repair collision repair California sting ethics core values The economy is still in the toilet basically. Pressures remain on our businesses to stay afloat. Our families and employees depend on us. This sounds like it has been typical business worldwide for the past several years – right?

When times are tough and competition is at an all-time high to get a piece of the pie, it's critical to remember what our businesses are built on and not get swayed into compromising our core values and ethics. Too often, we find ourselves looking for a fast way to solve long-term problems. This often leads to greater long-range issues that are just over the horizon.

The recent sting operation by the Orange County District Attorney's Office (OCDA) should teach us an important lesson about doing the right thing. If you didn't hear, our lovely, almost-bankrupt state to the west – often known for distorted consumer protection regulations, off-the-wall human resource policies and unsettling legal court actions – embarked on a sting called "Operation Straight Body." Officials took two vehicles around to many repair facilities that included pre-existing damages the customer requested to be included in some way in an insurance claim. If you push hard and long enough, you find those who make mistakes and compromise what's right, and this case, legal.

The sting listed 53 businesses that have been charged with insurance fraud as a result of the investigation. It also listed, with much smaller emphasis, that the OCDA noted the majority of the estimators complied with the law and advised the undercover investigator that the requested actions would be insurance fraud. Consumers' opinions are swayed by the media every day. What percentage of shops and estimators actually made this error in judgment? To the consumer, they may believe the industry is filled with those who operate illegally, such as the ones shown on television repeatedly.

We can't condone what was said or done by the 53 shops that were charged with fraud, but we should recognize there are at least two sides to every story. Having knowledge of how the Bureau of Automotive Repair (BAR) has proceeded and defined business in California in the past, there may be other agendas involved.

What was also unsettling is the OCDA made a point to thank the Automobile Club of Southern California, GEICO Insurance, Hartford Insurance, Infinity Insurance, Mendota Insurance, Mercury Insurance and Progressive Insurance Companies for their assistance. The industry's image and judgment are attacked daily. Possibly this is to undermine the importance and validity the decisions repairers make daily to ensure vehicles are repaired properly and safely for the benefit of the consumer, not to just cut costs to satisfy stockholders and create executive bonuses.

A few years ago, I remember sitting with Carl Sewell, CEO of one of the most well respected and successful Automotive Cadillac and Lexus franchises in the world and author of "Customers For Life." While discussing his book and business philosophy, we talked about one of the many gems of wisdom and company philosophies I'll probably never forget. He told his employees and managers that whatever decisions they make, make sure that if it was reported on the front page of the newspaper, it'd be something they'd all be proud of.

When it comes to conducting business, all of us are under the microscope every day. A local newspaper front-page spread isn't what's at risk anymore. Facebook, YouTube and other worldwide social-media sites make any business mistake an international event almost instantaneously. So in this case, the defining moment of truth was if the estimator just explained to the customer that attempting to do this isn't right, is illegal and is against his business ethics.

So what if you lose this repair? At least you're not front-page news.

Contact info: [email protected]

About the Author

Tony Passwater

Tony Passwater, president of AEII, has been in the collision industry since 1972. AEII is an international consulting, training and system development organization founded in 1986. Tony has worked with collision shop owners worldwide and developed computer solution software programs, training seminars, and on-site consulting services for many of the top organizations. He is also a founding partner in Quality Assurance Systems International, QASI, the leading organization for process improvement in the collision industry through ISO international standards and certification.

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