INDUSTRY NEWS (1245)
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For $5.8 million, Caliber Collision Centers (Caliber) has resolved a consumer fraud lawsuit filed in California and agreed to disciplinary actions initiated by the state Department of Consumer Affairs (DCA) that alleged Caliber billed customers for parts and services that were not provided.
Automotive Service Association (ASA) leaders met with U.S. Rep. Chris John, D-La., to discuss the Agreement between the automakers and ASA providing service information to independent repairers. The ASA executive committee briefed Rep. John on the progress of the Agreement.
Now that the anti-steering bill HB 2468 has passed in Arizona, what is the next step for the Arizona Collision Craftsmen's Association (ACCA)? (Autobody News, July 2004) The bill, sponsored by Fairness for Automotive Consumers (FAC), includes anti-steering provisions that protect con-sumer choice, place limitations on the claims adjuster making repair decisions thereby protecting the competitive market, and has mandatory reporting requirements with stiff penalties for violations of the bill.
Texas Attorney General Greg Abbott has filed court-approved settlements with two auto insurers to refund more than $3.4 million to Texas policyholders who paid more out of pocket on claims for auto repairs in certain years than their policies required.
California authorities arrested 38 people for alleged auto insurance fraud at more than 30 auto body shops in the Sothern California cities of Riverside and San Bernardino Counties. If convicted, each suspect faces up to five years in state prison and a maximum fine of $50,000.
State Senator Jackie Speier lauded Governor Schwarzenegger for signing into law her workers compensation legislation, SB X4 2, a bill that significantly toughens California's insurance fraud statutes.
Governor Arnold Schwarzenegger announced his support for Proposition 64, a November ballot measure whose supporters claim would stop "shakedown lawsuits."
California independent body shop owners got a boost on September 29 when Governor Arnold Schwarzenegger signed a bill that amends the automotive repair laws (Business & Professions Code Sec. 9880) to more strictly define who the customer is when a vehicle is being repaired, making it clear that an insurance company paying to repair a car is not the customer and cannot take the place of the customer.
Farmers Insurance Exchange has begun serving civil summons and complaints upon a Los Angeles body shop and its director, accusing them of taking part in a scheme designed to defraud Farmers and its policyholders. The civil complaint, which is similar to prior suits filed against shops, seeks damages for the fraud committed.
Standing at the corner of 8th Street and Kingsley Drive in Koreatown in Los Angeles, Insurance Commissioner John Garamendi announced several arrests in a large "paper collision" insurance fraud ring. He also asked the community to assist in locating three members who remain at large.
Oil, antifreeze and paint. An auto body repair facility can create more than 200 gallons of potentially hazardous waste each year. Where do these by-products of the body shop business go?