Appraiser Targets Insurers, DRP Shops in Book on Consumer Fraud
In his 25-plus years of experience in the collision repair industry, including seven as a licensed motor vehicle damage appraiser, Dan Wyatt has seen it all. Most of what he has seen has led him to the conclusion that insurance companies, adjusters and DRP body shops have colluded together in a massive scheme to defraud
American Family Suing Chicago Shops for Towing Fraud
American Family Insurance is suing five Chicago-area towing companies – three of which are also body shops – for alleged consumer fraud, claiming that the companies arrived at crash scenes without being called and charged excessive rates for towing services. The Southtown Star reported that the insurer is suing Jay Kay Collision, Four Sons Towing
California BAR, DOI Refute Assembly Member’s Claims of Rampant Collision Repair Fraud
Despite claims to the contrary, accounts of collision repair fraud constitute a very small percentage of complaints in California, reported Bureau of Automotive Repair (BAR) Chief Sherry Mehl and Deputy Commissioner of the Enforcement Branch for the California Department of Insurance (DOI) Rick Plein at a public hearing Aug. 25. Mehl stated that the fraud rates in
Airbag Fraud, Aftermarket Parts Debated at NCOIL Meeting
Model legislation concerning airbag fraud and the use of aftermarket parts was debated by members of the collision repair, insurance and aftermarket parts industries at a recent National Conference of Insurance Legislators (NCOIL) Property-Casualty (P-C) Committee meeting in Philadelphia. The model legislation was debated for nearly two hours at the meeting, with an emphasis on
California Shop Owner and Manager Arrested for Insurance Fraud
A body shop owner and a shop manager were arrested on charges of auto insurance fraud after allegedly over-billing for 20 repairs and costing Farmers Insurance $15,000, California Insurance Commissioner Steve Poizner announced. Dong Suk Choi, 52, owner of Choice Auto Body in Santa Clara and Newark, and Santa Clara shop manager Timothy Zen Powell,
FBI Accuses Wisconsin Shop Owner of Repair Fraud
Waukesha, Wis., body shop owner Brian Bautz has been accused of fraudulently conducting business by the Federal Bureau of Investigation (FBI), which alleged Bautz ordered employees to increase vehicle damage prior to estimates and quoted prices for OEM parts while actually using salvage parts, among other misdeeds. The Milwaukee Journal Sentinel obtained a copy of
New York AG Sends NYSACTA Inquiry to Auto Insurance Fraud Unit
The New York Attorney General’s Office has forwarded a letter about possible price-fixing by auto insurers written by New York State Auto Collision Technicians Association (NYSACTA) President Mike Orso to its Auto Insurance Fraud Unit for further consideration. Orso wrote the letter (click HERE to read it) in the wake of Attorney General Andrew Cuomo’s
California Bill Addresses Repair Fraud
The California Senate is considering a bill (S.B. 427) that would deter “parts switching,” or quoting one part on an estimate but instead installing a cheaper or faulty part during the repair. The bill would require repairers who include the replacement of a deployed air bag on a written estimate to repair and fully restore
California Bill Addresses Repair Fraud
The California Senate is considering a bill (S.B. 427) that would deter “parts switching,” or quoting one part on an estimate but instead installing a cheaper or faulty part during the repair. The bill would require repairers who include the replacement of a deployed air bag on a written estimate to repair and fully restore
Allstate Suing Florida Shops for Alleged Fraud
Allstate Insurance has filed a lawsuit against a group of Florida policyholders and 13 companies, including body shops, tow truck operators and chiropractic clinics, accusing them of staging 17 car accidents and filing fraudulent claims. The suit, filed this month in the U.S. District Court for the Southern District of Florida, seeks around $1.5 million