Earlier last month we published a new Penalty Policy. Some myths about the new policy have been circulating and we would like to address them.
Myth: You only get one entry mistake in your lifetime
Not true as most unintentional data entry errors are not violations or are non-penalty violations / self-reported violations where no fine is issued. The first time an error is made that results in a penalty-violation, no fine will be attached. After that, fines will be issued but only for penalty violations.
Myth: All violations have a fine
Nope, more than half of violations issued are non-penalty violations, which would not include a fine.
Myth: All fines are the same amount, $500
No! Penalty violations range from $50 – $500 and are based on severity as outlined in the policy. However, the rare Access Credentials 7.2 violation, ranges from $500 to $15,000 as it has in the previous policy.
Myth: ARMLS is trying to make money
No, actually the opposite is true. The goal of the policy is to reduce errors thus collecting less money in the long run.
Myth: ARMLS hasn’t tried a mandatory class or giving warnings
Actually, we have tried both. The last penalty policy was a level system. The first two violations in a six month period were warnings and no fine. The third violation in six months gave a $50 penalty or the option to take a rules class for most violations. The 4th violation in a sixth month period gave a mandatory class and a $100 fine for most violations. That system did not lower data errors to an acceptable level.
Myth: There isn’t a problem with the data, so this change doesn’t need to take place
We wish that were true, but data errors continue to effect the business of others. For example, a wrong sales price can throw a CMA off by thousands of dollars. For other examples see the bottom half of this post.
We urge all Subscriber to read the policy for themselves, if can be found here: http://www.armls.com/docs/data-integrity/armls-penalty-policy.pdf
Note: The policy is effective now but most fines are not yet being issued. See more on that here. The penalty policy for lockbox violations remains the same as the previous policy.