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Fraud Rampant in Body Shops

Study's findings are disputed by the repair industry, which is trying to replace the agency that oversees it.

September 10, 2003|Jenifer Warren and Virginia Ellis, Times Staff Writers

In the last five months, he added, legal action has been taken against seven other Caliber outlets around Southern California, with a total of $25,000 in overcharges documented.

Such actions come as industry officials are pushing to replace BAR with a nine-member oversight commission that would include four industry appointees and five public members. The plan has been outlined in auto body trade publications and industry lobbyists have been testing the waters to see if support for such a move exists in the Legislature.


For The Record
Los Angeles Times Thursday September 11, 2003 Home Edition Main News Part A Page 2 National Desk 1 inches; 64 words Type of Material: Correction
Body shops -- A headline in Wednesday's California section referred to "rampant" fraud in California body shops. In the state study discussed in the story, vehicles were inspected only if owners requested a check through a toll-free hotline. So, while 42% of those checks revealed fraud, the study did not contain any finding about the prevalence of fraud in the industry as a whole.


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Keller said the change is needed because "there is little working relationship" between BAR and those it regulates.

"It seems to have a cavalier attitude over the issues we raise," Keller said. "We just think it's an old structure that's ... unresponsive to the marketplace."

Although there has not yet been a bill drafted to accomplish the switch, consumer advocates fear that a bill will be produced this week during the final, chaotic hours of the legislative session, a time when controversial proposals often are slipped through. But Keller said there are no plans to propose such a measure now.

Consumers are alarmed because of BAR's diligence in pursuing fraud, a record that has made California leader of the pack when it comes to policing its automotive repair industry.

"No other state comes close," said Shahan of Consumers for Auto Reliability and Safety. "I'm very worried when the industry beats up on an agency that's doing its best to protect us."

BAR, with a budget this year of $116 million, gets its money from licensing fees paid by the auto body repair industry. The two-year pilot program cost $2.6 million, including costs of car inspections and attorney general staff time to process cases.

The insurance industry spends about $3.2 billion annually for auto body repairs in California, industry figures show.

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Times staff writer Evan Halper contributed to this report.

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