Information and Application Kit

CaseTrust

AccreditationScheme

for

Auto Allied Businesses

Information and Application Kit

Copyright 2014. Consumers Association of Singapore. All rights reserved. This document is provided for the explicit use and guidance of applicants of CaseTrustAccreditation for Auto Allied Businesses. Any other use of this document or parts thereof, including reproduction, publication, distribution, transmission, re-transmission or public showing, or storage in a retrieval system in any form, electronic or otherwise, for purposes other than that expressly stated above without the express permission of CaseTrust is strictly prohibited.

1

CaseTrust Accreditation Scheme for Auto Allied Businesses

ChapterTopicPage

1Background

1.1 Why CaseTrustAccreditation Scheme for Auto Allied 3

Businesses?

1.2 What is CaseTrustAccreditation Scheme for Auto Allied 3

Businesses?

1.3 What can consumers expect from a CaseTrust accredited 4

business?

2CASE Mediation Centre

2.1 What is Case Mediation Centre? 5

2.2 Nine Facts about Mediation 5

3Performance Bond

3.1 What is the performance bond for? 7

4Standard Agreement

4.1 What is the standard agreement? 8

5Accreditation Criteria (Summary) 9

6Application and Assessment Procedures

6.1 Application Procedure 14

6.2 Assessment Procedure 15

6.3 Fee Structure 16

6.4 Fees Illustration for Auto Allied Businesses 17

7ApplicationTerms and Conditions 20

8Application Forms 24

1.1Why CaseTrustAccreditation Scheme for Auto AlliedBusinesses?

a.The Consumers Association of Singapore (CASE) has developed an Accreditation Scheme for the auto allied businesses which was initiated by the industry. Building upon the widely accepted and stringent CaseTrust requirements whichprimarily promote fair-trading and good business practices, this CaseTrust Accreditation Scheme has incorporated new criteria unique to the auto allied businesses to help raise their professionalism and trustworthinessin the industry.

b.Participation in the CaseTrust Accreditation Scheme for auto alliedbusinesses is voluntarily and not compulsory.

c.With the introduction of this scheme, consumers can easily identify reliable auto allied businesses simply by checking whether the business displays the CaseTrust logo. As vehicle maintenance and repairs are consideredhigh-expense items to the motoring consumers, CASE hopes to offer better consumer protection by encouraging these businesses to adopt the widely accepted CaseTrust standards and good business practices.

1.2What is CaseTrust Accreditation Scheme for Auto Allied Businesses?

a.This Accreditation Scheme was designed in mindfor the auto allied businesses to enhance their trustworthiness by conducting their business with consumers in full transparency and good business practices.

b.A standard agreement was designed to be used by an accredited business to add greater transparency to the process of servicing and repairing motor vehicles. This agreement clearly spells out the liabilities of each party, as well as the terms and conditions with regards to the services to be performed and the time taken.

c.The CASE Mediation Centre will handle mediation for complaints against accredited auto alliedbusinesses. Accredited auto alliedbusinesses are contractually bound to mediation and are committed to resolve business disputes amicably.

1.3What can consumers expect from a CaseTrust accredited business?

a.Anauto alliedbusiness that achieves CaseTrustaccreditation is certified as a business that possesses the foundation for good business practices and standards. The business will have the following mechanisms in place:

Clear Fee Policies

• The auto allied business will provide itemised billing on works that it undertakes from customers.

• It has clearly articulated and documented policies on fees and fee refund. These must be fully disclosed to their customers and adhered to according to the terms and conditions of the contract between the business and consumer.

Well-Defined Business Practices and Systems

• A redress system with proper and clearly defined dispute resolution mechanisms for the business and consumers. This will include mediation by, CASE Mediation Centre, and recourse to the Small Claims Tribunal and the Courts, if necessary.

• A performance bond capped at S$50,000 to protect the customer’s fees and deposits paid in the event of an unresolved dispute.

Well-Trained Personnel

• The auto allied businessensures that it has sufficient and well-trained servicepersonnel who can carry out the repair and maintenance works efficiently and with quality assured.

• It ensures its service advisors do not practice unethical sales tactics and must be able to provide good customer service.

2.1What is CASE Mediation Centre?

a.Set up in June 1999, the CASE Mediation Centre is an independent and impartial institution specializing in the resolution of disputes between businesses and consumers.

b.Consumers or businesses who have an unresolved dispute can lodge their claim/dispute with CASE Mediation Centre.

c.If there is a settlement during mediation, the terms of settlement are recorded and signed by all parties present (consumer, business and two mediators). Should one party not comply with the stated terms, the other party can use this agreement in court to enforce compliance.

d.All mediators are well-trained and experienced in handling disputes of such nature. They are mainly professionals who have volunteered their time for a good cause for the community-at-large.

2.2Nine Facts about Mediation

a.Mediation is voluntary.

b.Mediators work towards encouraging both parties through interaction to arrive at an amicable settlement by themselves.

c.During mediation, both parties have full opportunity to put forward their side of the story. Both parties are able to understand both sides of the coin with inclusion of mediators’ suggestions.

d.Mediation allows both parties to resolve the matter through the facilitation of a mediator.

e.The mediator, unlike a judge, does not make decisions on the disputes in any way.

f.There is informed decision making on the terms of settlement with the facilitation of the mediators.

g.Mediation sessions tend to be less stressful to both parties and, at times, are friendly conversations and clarifications.

h.In mediation, there is no right or wrong or winning party or losing party. It is a win-win situation.

i.If a consumer who has a dispute with a CaseTrust accredited business requests for mediation at CASE Mediation Centre, the CaseTrust accredited business must attend the mediation session arranged by CASE.

3.1 What is the performance bond for?

a.All accredited auto alliedbusinesses will be required to purchase a performance bond in the amount of $50,000. The performance bond is one of the many ways that an accredited business takes to show its commitment to their customers.

b.In the event a consumerhas a dispute with an accredited auto allied business the matter can be referred to the CASE Mediation Centre. The CASE Mediation Centre will decide on the facts and merits of each case. If the decision is made in favour of the consumer, a payout will be made from this performance bond.

4.1What is the Standard Agreement?

a.There is a Standard Agreement in the form of a quotation and invoice preparedfor the accreditation scheme.

b.The Standard Agreement lists the terms and conditions for consumers to procure the goods and services from the accredited auto alliedbusinesses.

1. POLICIES

Area

/

Criteria

Delivery of Materials, Works and Services / A1. My business has a documented and specified policy to offer materials, works and services of satisfactory qualityas defined in the Sales of Goods Act S14 (2), Consumer Protection (Fair Trading) Act and Lemon Law. My business has established and maintained a business system that conforms to the requirements of the CASETRUST Accreditation criteria.
Terms & Conditions of Transactions / A2. My business has a stipulated refund policy.
A3. My business has a policy of providing a written quotation and
invoice to my customers.
A4. My business has a policy of providing a copy of the signed quotation and invoice to my customers.
A5. My business provides service guarantees to protect customers against delayed works and defective workmanship/ materials.
A6. My business has a policy that warrants the materials supplied are of satisfactory quality, suitable for intended use and matches the description and samples provided to my customers. Materials supplied are warranted for six months from date of purchase.
A7. My business has a policy on rectifying defective works and replacing defective materials supplied. The time frame and conditions of rectification would be stated and mutually agreed upon with customers.
A8. My business has a policy of providing a clear breakdown of information on the services offered, the price and the delivery schedules to customers.
A9. My business has provisions for terms involving variations to the works.
A10. My business has an insurance bond of $50,000 for the purpose of fulfilling its contractual obligation as agreed with customers.
Pricing & Payment / A11. My business has a policy committing to clearly displaying all service charges including discounts or promotions etc.
A12. My business clearly states the payment methods and channels available to customers.
A13. My business is committed to demonstrateavoidance of over-charging and to ensure correct change is given.
A14. My business clearly states any additional charges incurred beside the contract price such as on-site surveyor fees, delivery and towing charges.
A15. My business has a policy of only engaging the services of a registered surveyor for motor insurance claims.
A16. My business has a payment schedule clearly stating the amount to be paid at various stages.
Security / A17. My business is committed to maintaining the confidentiality of customer data.

1. COMMUNICATION

Area / Criteria
External Communication / B1. My business provides effective mode(s) of communication for both internal staff and customers.
B2. My business appoints a member of our management who, irrespective of other duties, has the responsibility and authority to:

• Ensure the needed processes are established, implemented and maintained.
• Report to management on the performance of the accreditation scheme.
• Report to management on any need for improvement.
• Ensuring the promotion of awareness of customer requirements.
• To inform CaseTrust in writing of any critical changes including its Management Representative Office.

Advertising & Promotion / B3. My business’ marketing communications include accurate details on prices, quality, availability and terms of sales (i.e. sales of packages of services available) and service agreements.
B4. My business must honour what we have advertised and promoted.
B5. My business clearly states the period for which promotions are valid.
B6. My business clearly spells out details of the mechanism for any
lucky draw or competition promotions.
B7. My business makes available to both customers and the public the details of the insurance bond.
Dissemination of Regulatory Requirements / B8. My business should ensure that clients are well informed and advised on all regulatory requirements by the relevant authorities.

1. PRACTICE & SYSTEMS

Area / Criteria
Terms & Conditions of Works / C1. My business adopts a fair and comprehensive service agreement with customers.
C2. My business provides customers with a copy of the signed service agreement.
Payment, Collection & Delivery / C3. My business provides customers with receipts with full detailed information to acknowledge deposits and payments.
C4. My business issues receipt to customers with relevant details of the purchases of the services provided.
C5. My business honours refunds promptly within the stipulated time frame and conditions.
Feedback Management / C6. My business has a system to document complaint cases and a complaint resolution procedure.
C7. My business keeps complainant informed of the status of the complaint investigation.
C8. My business resolves complaints within agreed time frame as stated in the service agreement.
C9. My business informs customers of alternative forms of redress should the company be unable to resolve the complaint within the time frame (e.g. repair, replacement and refund etc).
Security / C10. My business uses customers’ particulars strictly for the purpose of serving the customers’ needs, which includes, if applicable, completing the sales transactions, billings, carrying out after-sales services, providing warranty for products and services, servicing membership privileges and notifying customers of promotional deals or any other incidental transactional activities (e.g. insurance claims).
C11. When my business wishes to use customers’ particulars for purposes other than those stipulated at Clause C10, we make this known to the customer and seek the customer’s consent before obtaining his/ her particulars.
C12.My business has a system to keep all customers’ particulars confidential.
Quality of Service / C13. My business will conduct a documented receiving inspection and delivery test drive before returning the vehicle to customer.
Verification of Purchased Products / C14. My business establishes and implements the inspection of other necessary activities for ensuring the purchased parts meet the specified purchase requirements. If the workshop or its customer proposes to verify the parts at the supplier’s location, state the intended verification arrangements and method of product release in the purchasing information.
Customer Property / C15. My business exercises due care and undertakes responsibility with customer property while in its possession.

1. PERSONNEL

Area / Criteria
Performance / D1. My business’ customer support and service staff should not practise any unethical sales tactics.
Knowledge / D2. My business employs appropriately qualified staff who can demonstrate sound industrial practice using reasonable skill, care and progress in the work process.
Safety / D3. My business provides personal safety appliances to our staff.

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CaseTrust Accreditation Scheme for Auto Allied Businesses

6.1 Application Procedure

Step 1:

Step 2:

Step 3:

Step 4:

Step 5:

Note: Time taken for application and assessment depends on how complete and how early forms & documents are submitted to CaseTrust. The process would take between 3 -4 months to complete.

6.2 Assessment Procedure

6.3 Fee Structure

AUTO ALLIED BUSINESSES

Type of Fee

/ CaseTrust Fee Structure for Auto Allied Businesses
(Inclusive of GST)
Small Business:
Sales Turnover
less than $2M / Medium Business:
Sales Turnover
more than $2M
But less than $6M / Large Business:
Sales Turnover
more than $6M
Application Fee / S$428 / S$428 / S$428
Full Assessment (1st Year)
Interim Assessment (3rd Year) / S$856
S$535 / S$2,461
S$1,177 / S$3,638
S$1,819
Annual Management Fee / S$856 / S$1,712 / S$2,675

6.4 Fees Illustration For Auto AlliedBusinesses

Detailed cost breakdown for companies classified as a SMALL BUSINESS over

4 Years

Type of Fee / Paid to / Year 1 / Year 2 / Year 3 / Year 4
Application fee / CASE / S$428 / - / - / -
Performance Bond / Insurer / To be advised+ / To be advised+ / To be advised+ / To be advised+
Assessment fee / CASE

• Full

/ S$856 / - / - / -

• Interim

/ - / - / $535 / -
Annual Management Fee / CASE / S$856 / S$856 / S$856 / S$856

Total

/ S$2,140 / S$856 / S$1391 / S$856

+ Rate will depend on whether or not a claim has been made on the performance bond.

Detailed cost breakdown for companies classified as a MEDIUM BUSINESS

over 4 Years

Type of Fee / Paid to / Year 1 / Year 2 / Year 3 / Year 4
Application fee / CASE / S$428 / - / - / -
Performance Bond / Insurer / To be advised+ / To be advised+ / To be advised+ / To be advised+
Assessment fee / CASE

• Full

/ S$2,461 / - / - / -

• Interim

/ - / - / S$1,177 / -
Annual Management Fee / CASE / S$1,712 / S$1,712 / S$1,712 / S$1,712

Total

/ S$4,601 / S$1,712 / S$2889 / S$1,712

+ Rate will depend on whether or not a claim has been made on the performance bond.

Detailed cost breakdown for companies classified as a LARGE BUSINESS over

4 Years

Type of Fee / Paid to / Year 1 / Year 2 / Year 3 / Year 4
Application fee / CASE / S$428 / - / - / -
Performance Bond / Insurer / To be advised+ / To be advised+ / To be advised+ / To be advised+
Assessment fee / CASE

• Full

/ S$3,638 / - / - / -

• Interim

/ - / - / S$1,819 / -
Annual Management Fee / CASE / S$2,675 / S$2,675 / S$2,675 / S$2,675

Total

/ S$6,741 / S$2,675 / S$4,494 / S$2,675

+ Rate will depend on whether or not a claim has been made on the performance bond.

MPORTANT NOTE:

1.Fees are inclusive of the prevailing GST rate and are subject to change, depending on economic situation and discretion of the CaseTrust department.

2.*Full-term assessment is conducted every 4 years.

3.**Interim assessment is conducted every 2 years.

4.Application fee is to be paid in advance. Full assessment fee is to be paid at the submission of desktop assessment documents.

5.The application will be considered NULL & VOID, with the applicant considered to have failed the assessment if

1. Documents for assessment are not submitted within 6 months from date of application.
2. The Applicant failed to obtain CaseTrust within the period of 1 year.

6.Applicant must go through the full assessment first, and the interim assessment after 2 years.

- CASE reserves the right to perform more than one interim assessment during the 4-year period.

- If the Applicant does not pass the assessment, it must pay a re-assessment fee equivalent to the full assessment fee.

7.The annual management fee is payable only after the Applicant clears the assessment process.

8.Below are the cancellation fees in the event the Applicant cancels its application under the following circumstances:

a)Application fee is strictly non-refundable.

b)Assessment fees are refundable if withdrawal request is made within 14 days after the submission of your application.

c)Ifwithdrawal requestis made at least 3 days before commencement of site assessment,50% of theassessmentfees will be refundable.

d)Assessment fees are strictly non-refundable ifwithdrawal request is made within the 3 days before site assessment.

CaseTrust Accreditation Scheme

Application Terms and Conditions

Application

1.The Applicant is bound by the Terms and Conditions herein and such variations, which may be from time to time be made by the CaseTrust department, and upon submission of their application to the CaseTrust department.

2.The Applicant must not have five (5) or more complaints lodged against it with breaches of the Consumer Protection Fair Trading Act (CPFTA), and must have a clean track record with CASE and relevant authorities (within a period of 12 months before the date of application) in order to qualify for the accreditation scheme.

3.Companies with different ACRA numbers are considered separate entities, even if they are under the same holding company. Separate applications will be required.

4.An application to join CaseTrust must be accompanied by:

(a)Completed application form as prescribed, together with any supporting documents required

(b)Application fees

5.The application fee herein will not be refunded if the Applicant fails to qualify for assessment for any reason whatsoever.

6.If an Applicant fails the prescribed assessment conducted, the Applicant may be given a further opportunity to apply for re-assessment so long as the Applicant does not exceed 2 further assessments. All assessment fees, if any, must be paid by the Applicant.

7.The Applicant may ask for a review of the assessment with reasons. Upon receipt of the review fee, the Applicant’s request will be considered by the CaseTrust department. Such review will be allowed at the discretion of the CaseTrust department and will be final. This review fee will be refunded if the review is found in the Applicant’s favour.

8.In the event that there is a need by the Applicant to consult with an existing panel of consultancy firms, then the Applicant will liaise directly with such consultants, who will be independent of the CaseTrust department, and appropriate fees will be paid to them for the consultancy. The CaseTrust department will under no circumstance be liable for any advice rendered by such consultancy firms.