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Dept. of Consumer Affairs Study Finds Consumers Don't Always Get What They Pay For with Auto Body Repairs

Widespread Billing Problems Documented in Two-Year Study

SACRAMENTO, Calif., Sept. 10 -- In a special two-year study of the auto body repair industry, the California Department of Consumer Affairs/Bureau of Automotive Repair (DCA/BAR) documented that nearly half the time, consumers were charged for parts or labor they didn't receive.

BAR inspected 1,315 vehicles that qualified as part of a pilot program, that was mandated by Senate Bill 1988 (Speier, 2000). Of those, 551, or 42% had parts or labor listed on the invoice that were not actually supplied or performed. The average dollar amount of overbilling per vehicle was $811.93.

"We're disturbed by the pattern of problems we found in some shops," said BAR Chief Patrick Dorais. "That's why BAR, the Attorney General and a number of local District Attorneys have taken action." To date, 47 administrative actions have been filed by the Attorney General, and 46 referrals have been made to local district attorneys for possible criminal or civil action, and more are expected. "In some cases, the problems were isolated and we've worked with those auto body repair shops to make sure they follow the law," added Dorais.

SB 1988 directed BAR to identify auto body repair work that was not done "according to specifications in the final invoice." The program began on July 1, 2001 and ended on June 30, 2003. Consumers contacted BAR to have their vehicles inspected. To qualify for the program, a vehicle must have had:

  -- Collision repairs within the last 120 days
  -- A complete invoice with repair costs that exceeded $2,500

Consumers also benefited from BAR's efforts to mediate complaints filed during the pilot program. BAR was successful in securing offers of more than $500,000 in direct refunds, rework of the vehicle, or adjustments to the bill by auto body repair facilities on behalf of consumers.

As a direct result of the pilot program, BAR is recommending to the State Senate Insurance Committee some significant changes, including:

  -- Exploring specific methods and strategies to reduce unfair and illegal
     practices in the auto collision repair industry.
  -- Developing protocols that better define the roles of, and relationship
     between, the auto insurance and auto body repair industries.
  -- Consider requiring that those who have the mechanical background and
     equipment to properly evaluate the true condition of the vehicle do the
     formal estimating of collision damage.  In other words, let the
     automotive experts, not the insurance adjusters, make the damage
     estimates in collision repair.
  -- Insurance adjusters should change the name of the simple visual
     inspection they do to a "visual damage assessment."  This would let
     consumers know that the inspection may not be a comprehensive, complete
     and itemized estimate of all repairs needed to return the vehicle to
     its pre-accident condition.

BAR's Auto Body Repair Report is available online from either the Department of Consumer Affairs Web site at www.dca.ca.gov, or BAR's Web site at www.autorepair.ca.gov

DCA/BAR promotes and protects the interests of California consumers. Consumers who cannot resolve an auto body problem with a repair facility can file a complaint via either Web site.