Press Release

Consumer Groups Urge Governor to Sign Auto Repair Fraud Legislation

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Posted 24 September 2008 @ 04:41 pm ET

SACRAMENTO, Calif., Sept. 24 /PRNewswire/ -- Leading Consumer groupsincluding the Center for Auto Safety, Consumer Action and Consumers Union areunited in urging Governor Arnold Schwarzenegger to sign Assembly Bill AB 2825(Carter), designed to protect motorists from auto body repair fraud. Thelegislation was passed by a strong bipartisan legislative vote and is awaitingaction by the Governor along with hundreds of other measures.

"Consumer groups are united behind AB 2825 to put a dent in partsswitching and auto body repair fraud in California," said Clarence Ditlow,Executive Director of the Center for Auto Safety and a leader in auto repairand safety issues for over 25 years. "By signing AB 2825 the Governor will betaking a giant step toward smashing parts switching, deterring auto repairfraud and saving California consumers hundreds of millions of dollarsannually."

AB 2825 (Carter) is an important consumer protection bill that is designedto reduce unfair and illegal practices in the auto collision repair industry.Current law requires consumers be provided an itemized written estimate priorto work commencing and a final invoice listing work completed and partsprovided. Under AB 2825, consumers would be notified at the time of theinitial estimate and again on the final invoice, that parts switching isillegal and constitutes fraud. The legislation also requires auto body shopsto provide customers with copies, if requested, of the invoices for installedparts.

"AB 2825 will better educate consumers and provide customers with animportant new right to receive actual copies of invoices for all crash partsinstalled on the vehicle", added Ditlow. "Some car dealers support the billbecause they loose business to dishonest body shops."

Auto repair complaints make up a large and growing group of consumergrievances and most involve fraud. In a state as large as California, theopportunity for fraud is widespread. The insurance industry pays out over$3.2 billion annually for collision repairs in the state with the averageclaim approaching $3,000.

About one million accidents occur in California each year -- or about oneevery thirty seconds. As a result, most Californians will find themselves inneed of collision repair services at one point or another. It is estimatedthat 40 percent of these motorists are likely to become victims of fraud.

"Nobody is immune from becoming a victim. While most auto body shops arehonest, bad actors cost Californians hundreds of millions of dollars eachyear," Consumers Union, (publisher of Consumer Reports magazine) wroteGovernor Schwarzenegger. "With over 1 million accidents each year some 400,000Californians are likely the unsuspecting and unwilling victims of partswitching and auto body fraud."

A 2003 study by the California Bureau of Automotive Repair (BAR) showedthat 42% of vehicles inspected had over $800 in parts or labor listed on theinvoice that were not actually supplied or performed.

Led by the Center for Auto Safety, other groups supporting AB 2825include:

-- Consumers Union (publisher of Consumer Reports) -- Consumer Action -- Public Citizen -- Advocates for Highway and Auto Safety -- Consumers for Auto Reliability and Safety Click here to read Assembly Bill 2825 as enrolled.http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_2801-2850/ab_2825_bill_20080821_enrolled.pdf

For more information, please contact Michael Boccadoro at (916) 441-4383or mboccadoro@dolphingroup.org

Contact: Clarence Ditlow Center for Auto Safety (202) 328-7700 x109 or Michael Boccadoro (916) 441-4383SOURCE Center for Auto Safety


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