Department of Consumer Affairs Addresses Auto Body Fraud

28 October 1999
Department of Consumer Affairs Addresses Auto Body Fraud
    SACRAMENTO, Oct. 27 -- In a report to the Senate Insurance
Committee, the California Department of Consumer Affairs' Bureau of Automotive
Repair (DCA/BAR) today submitted strategies for combating auto body fraud and
ensuring the safety of reconstructed salvage vehicles.  Fraudulent repair
schemes annually cost consumers up to $5 billion nationwide.
    The report is intended to assist the committee in determining the proper
course of action for the future of the auto body repair industry and those who
regulate it.
    "BAR has made substantial progress in fighting repair industry fraud, but
there is much more to be accomplished.  We've increased enforcement
activities, and adopted stricter regulations to protect owners of damaged
vehicles.  Not all shops are dishonest, but BAR is finding fraudulent conduct
on such a scale that the honest shops and the motoring public are harmed,"
said DCA Director Kathleen Hamilton.
    "Expanding our undercover investigations, and improving communication with
insurance companies and consumers is critical," Hamilton added.
    In addition to the auto body repair issues, the report also addresses
safety problems with salvage vehicles that have been improperly repaired and
returned to the road.  Further, the report discusses allowing only specially
registered shops to perform repairs and providing better notification, repair
verification and complaint avenues for the consumer.
    An auto body repair committee was established by DCA/BAR in 1994 to study
problems in the repair industry.  It addresses fraud concerns and disseminates
information and direction to the insurance and repair industries.
    Consumers may check the status of an auto repair dealer's license, or file
a complaint, by calling BAR's Consumer Hotline at 800-952-5210.  Consumers may
also visit the Department's website at http://www.dca.ca.gov for tips on choosing an
automotive repair dealer or for downloading a complaint form.