Connecticut campaign targets insurer antitrust violations - - ABRN (Automotive Body Repair News)

Connecticut campaign targets insurer antitrust violations

Source: Automotive Body Repair News

The Auto Body Association of Connecticut (ABAC) launched a national campaign to remove insurer interference from the collision repair industry. The campaign consists of two petitions to U.S. Attorney General Eric H. Holder Jr.

The first petition is for leaders in the collision repair industry to sign and asks for the enforcement of anti-trust laws. “Conditions in the collision repair market are out of control,” the petition says. “Consumer rights are being trampled and independent repair shops are being put out of business. The repair industry and the millions of consumers serviced by it are suffering from the lack of legal enforcement.”

Click here to download the petition from ABAC’s Web site, www.abaconn.com. A second petition will be for all employees in the collision repair industry, according to Bill Romaniello, legislative director of ABAC and owner of All Pro Collision Repair in Plantsville, Conn.

“Connecticut Attorney General Richard Blumenthal attended the Society of Collision Repair Specialists (SCRS) meeting in Hartford, Conn., on April 23, and he said he was aware of the concerns facing our industry,” Romaniello says. “He said he’s had conversation with other attorneys general about our concerns and would be willing to contact and speak with them to help our cause.”

The first petition says that “insurers, appraiser and even some direct repair shops are systematically conspiring to depress labor rates; to control repair decisions and processes; to channel or steer repair work to preferred repair shops; to boycott independent repair facilities; and to otherwise work together toward eliminating independent repair facilities in favor of insurer-controlled direct repair programs. Moreover, insurer control over appraisers has become so commonplace and incestuous that many appraiser are literally on the payroll and employed by insurers.”

The petition was well received by the National Auto Body Council, Collision Industry Conference and SCRS boards and committees at their meetings last week in Hartford, according to Romaniello.

Comments from our Readers
 Posted 2009-04-29 18:39:02.0
AMEN!
 Posted 2009-04-29 22:41:57.0
One clarification needs to be made very clear, "The petition was well received by the National Auto Body Council" is an incorrect statement in that it was never submitted to us or to any committee of NABC for consideration and nor should it have been submitted. What associations or businesses do and how they do it in our opinion is part of the normal course of business whenever a difference of opinion occurs which may end up requiring a legal resolution. NABC is solely focused on improving the image of the greater collision industry and we do that through positive press coverage and community programs that show the participants of this industry in the quality light that we know them to be. We do not take a position on such cases since we believe the better resolution needs to be between those in dispute as well as the legal system that will result in a resolution. Our concern is when comments get said in a public forum that simply sends the discussion into the gutter by attacking the person or company rather than the real issue at hand. That the Connecticut association believes they have no other recourse than to use the legal system is not a concern of ours, and while we may not support any legal action, we support the fact that from all our indications, both sides have displayed respect of each other and we are hopeful that it remains that way and have every reason to believe that it will. It needs to be remembered that the real focus needs to be on the issues of the case or any case, not the parties involved. While legal matters sometimes are needed to resolve matters it can be done in a respectful manner. We certainly do not expect anyone to lessen their opinion or passion, but the focus of discussion needs to be addressed to the points of concern rather than the individuals or companies involved. We will continue to work with anyone who has a desire to improve the image of this industry even thought they might disagree on other matters.
 Posted 2009-04-30 20:02:30.0
It's nice to see someone finally going after the insurers. (Albeit a little too late for me) I owned Can-Am Bodyworks for 20 years and just recently closed it due to lack of business, which I attribute to insurer interference. In fact, I proved it. I opened my shop in a small town of 650 people in 1989 and did well for a while. We put out top quality work and warranted everything. I had no idea why my sales were dropping off until one of my body men came in and told me where my customers were going. His wife had hit a deer with their new car. When he called his insurer, the adjuster sent a tow truck to pick the car up and take it to a dealer 45 miles away. He protested, saying he wanted the car fixed at my shop, the adjuster stated "Well the truck's already on it's way". I contacted several insurance companies after that only to find that due to the low volume of work in my town, I couldn't afford to get into their DRP's. One insurance company alone charged $6,000/year for their software. I couldn't get enough business from a town of 650 to pay for that.The insurance companies have been paying their DRP's higher rates for years to take my business away, and getting lower quality work. My body man's car was sent back to the dealer several times due to poor workmanship. I now own an auto service shop in a town of 750 and I'll never have to fight another insurer.
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