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Board of Directors FR: Renewal Overcharges Essay

… Board of Directors

FR:

Renewal overcharges

(1) in the course of a routine investigation on another matter, it has been uncovered that many of our repeat customers have not been properly credited with the early pay discount to which they are contractually entitled. The company has been, in effect, overcharging some of our customers for several years.

(2) This issue is directly related to our company's compliance plan. In basic, the compliance plan was developed with the objective of ensuring that our business practices are fair and that our risk of adverse legal action or negative publicity is minimized, as these are considered to be damaging to our business interests. The compliance plan is implemented by means of audits conducted either by the compliance department,…. [read more]

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