The Daily Record, September 2015

According to the Federal Trade Commission, auto repair complaints remain in the top ten consumer grievance categories. People are frequently persuaded to have unnecessary repairs completed on their automobiles simply due to the lack of knowledge and understanding of them, and the work being done. During the 1990’s, Sears, Roebuck, & Company was caught in a huge auto repair scandal. Being one of the most beloved large retailers at the time, they were also the largest auto repair chain, servicing approximately 20 million cars annually. However, due to competition from Wal-Mart and Kmart, and the economic downturn, Sears started seeing their earnings decrease. On top of the competition, times were changing on Wall Street, and stock prices became more important than ever before. With earnings falling, Sears had to take drastic measures to improve their bottom line. During this time, the Company cut 48,000 jobs and implemented a new compensation system for employees. Shortly after the changes were implemented, complaints from customers starting rolling in. People were complaining of getting billed for repairs they didn’t want or need and of dishonesty from the repair centers. The Company became the target of an official investigation in 44 states and 18 class action suits were filed against the Company. However, even after these investigations and lawsuits uncovered a significant amount of fraud, the scams still continued. According to an article published in the Wall Street Journal, from 1995 to 1999, lawsuits filed accused Sears of stealing over $400 million from customers just for tire balancing that was never performed. Mechanics and sales staff spoke out claiming that the new bottom-line focus forced them to make poor decisions while at work, because they feared they would lose their job. A more recent case in the news involved a man from Tucson who was arrested in July of this year in connection to a fraudulent mobile auto repair company that was targeting the elderly. The group, known as the “Dent Doctor” would drive around neighborhoods looking for vehicles with small dents or damages. They then solicited the vehicle owners to pay up-front for on-the-spot repairs. They would then either start the repairs, or pretend to do the repairs and make up an excuse to leave the area with the up-front payment, and never return to complete the repair. Given that auto repair scams continue to be an issue for consumers, it’s important to be aware of the different methods used by companies to lure customers into spending more than what is actually needed.

Types of scams

Insurancefraud.org published the following list of the most common auto repair fraud scams:

• Padding charges – Actual charges billed for services are higher than the estimates presented or mechanics leave the estimate blank, and then fill in an inflated amount later on.
• Needless repairs – Repair shops present customers with issues that don’t actually exist.
• Counterfeit or used parts – Shops use poor quality parts, or used parts, but charge for high-end parts.
• Substandard work or no work at all – Charges for poor quality work, or shops who charge for work that wasn’t actually performed.
• Specials and maintenance hook schemes – Auto shops will advertise great specials, or low prices for services, making the customer feel like they are getting a great deal. However, the shop uses the low price to take advantage of the customer and charge for other unnecessary services.
• The dirty air filter scam – A mechanic tells a customer that their air filter needs to be replaced; however, the black air filter that is shown to them to confirm the need for replacement is not actually theirs.

Not only do these scams cost people a significant amount of money in repair costs and potentially raise the cost of car insurance, it also puts lives at risk having cars on the road that are not properly taken care of. Therefore, it is important to either know someone who can help you with your auto repairs or to have a basic understanding of them and be able to identify when someone may be trying to take advantage of you.

Tips to remember

When it comes to protecting yourself from potential auto repair fraud, the Federal Trade Commission suggests the following tips:

• Keep good records – Keep a log of work that’s done on your car and read your manual to understand the maintenance requirements for your vehicle.
• Don’t pay for anything you didn’t authorize – If you receive a bill for services that you did not authorize the shop to complete, you shouldn’t have to pay for it.
• Seek recommendations from family and friends – Ask friends or co-workers for any recommendations for trustworthy auto repair shops.
• Ask your insurance company for a list of preferred body shops in your area – Your insurance company should be able to provide you with some recommendations for trustworthy repair shops.
• Get a written estimate – Before any work is performed, get a written estimate of all work so you fully understand what services are to be provided and the cost.
• Ask to see repairs done on your car – Don’t just trust that repairs were actually made to your car. Ask the mechanic to physically show you and explain to you what was done.
• Ask the shop to explain any charges that exceed the estimate provided to you – If your bill is higher than the estimate you authorized, the shop should be able to provide you with detail for the difference.
• Get a second opinion – If a repair shop tells you that you need extensive or expensive repairs, or you’re apprehensive about making the investment, get a second opinion before agreeing to the repairs.

Be proactive

A lack of auto repair knowledge should not prevent you from getting the appropriate service you deserve. It’s important to develop a good long-term relationship with a repair shop you can trust. This will help reduce the headaches and stress of car repairs, and help to protect you and your family by ensuring your vehicle remains safe to drive.