Department of Consumer Affairs Addresses Auto Body Fraud
28 October 1999
Department of Consumer Affairs Addresses Auto Body FraudSACRAMENTO, 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.