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Auto Repair Fraud a Discouraging Trend

car accidentThe Long Island car accident attorneys at Edelman, Krasin & Jaye are troubled to learn of a widespread and growing practice in which insurance companies pressure auto body shops to provide cheap and shoddy workmanship, endangering their clients in the process.

The issue has recently come to light as a result of a major lawsuit filed by auto body shops across the country, which have alleged that insurance companies compel them to use discarded and broken parts in their repairs in order to save money. The repair shops have argued that they are forced to use such parts lest the insurance companies “steer” clients away from them and toward other shops that will comply with the companies’ demands.

Obviously, such practices could put drivers at risk for accidents if cars “repaired” in such a fashion malfunction. Local residents who have suffered accident or injury due to the installation of used or defective parts that may be related to these practices should contact our office to discuss the possibility of filing an auto repair fraud lawsuit in Long Island.

Auto repair fraud lawsuits may be warranted

In a recent CNN report, a shop owner from Louisiana showed the network an example of the kind of practices that the lawsuit involves. The owner presented a headlight for a Toyota Tacoma vehicle that had been previously damaged and repaired clumsily with glue. He described how the headlight, if fitted to the car, would more than likely fill up with water when the owner of the vehicle was driving through rain because of the crack in the lens. Despite this danger, this owner had been instructed to use this damaged part as part of a repair job.

A representative from State Farm, one of the largest auto insurance companies and one which was named in the lawsuit, has denied that they engage in such practices. And Neil Alldredge, of the National Association of Mutual Insurance Companies (to whom State Farm referred CNN) said that “It is just not in the economic interest of the insurer to have a car go in and out of an auto body shop three or four times to get it right….”

Nevertheless hundreds of auto body shops across the nation will argue that they have been pressured to perform substandard repairs by insurance companies.

At Edelman, Krasin & Jaye, we don’t think that you should have to pay the price for such questionable practices. A personal injury lawsuit of your own may be able to provide you with just compensation if you have been hurt or suffered property damage as a result of this kind of fraud.

Department of Justice concerned about fraudulent car repairs

In addition to individual auto body shops, state governments like Louisiana, Mississippi, and Oklahoma, are also taking action as part of the large scale lawsuit against the insurance companies. Along with the attorneys general of these states, Sen. Richard Blumenthal of CT has asked the Department of Justice to launch its own investigation into practice of pressuring auto body shops to provide cheap and shoddy repairs. He and others cite the dangers that such practices pose to consumers.

Clearly, the issue is a major one which is not easily dismissed. If you feel like you have also been a personal victim of this auto repair fraud, please contact the offices of Edelman, Krasin & Jaye at 1-800-469-7429. We offer free legal consultations regarding a potential lawsuit and to answer any questions you may have.