U.S. Sen. Richard Blumenthal announced Saturday he has asked the Department of Justice to investigate the practice of major auto insurers steering clients to certain repair shops.
In a letter to U.S. Attorney General Eric Holder, Blumenthal, D-Conn., wrote: “I write to bring your attention to troubling new evidence that our nation’s top auto insurers continue to engage in anti-competitive and possibly illegal tactics to pressure consumers into repairing their vehicles at insurance-preferred repair shops.” He cited a special investigation shown on Anderson Cooper 360 recently.
We know for sure there is a violation of moral duty,” Blumenthal said. He likened the practice to a medical insurance company telling doctors how to treat patients. Blumenthal, who spent many years as Connecticut’s attorney general, is a ranking member of the Senate’s Consumer Protection Subcommittee.
Blumenthal announced the initiative at a press conference at A&R Body Specialty & Collision Works, where he was joined by members of the consumer advocacy group Auto Body Association of Connecticut, including Tony Ferraiolo, owner of A & R and the Coalition for Collision Repair Excellence.
The press conference included a demonstration comparing parts recommended by manufacturers and the cheaper version of the same part.
Blumenthal said the insurance carriers often steer consumers to the shops to save money, as their preferred shops may use parts and labor of lesser quality. He said it should be, “your car, your choice,” and that safety should be the insurance company’s priority.
Blumenthal said in his letter to Holder that in a 1963 number consent decree with the department of Justice, many insurers were “ordered to stop sponsoring any appraiser, directing, advising or otherwise suggesting any person or firm do business with any independent or dealer-franchised automotive repair shop,” or exercising control over the activities of an “appraiser.”




He wants the DOJ to determine if current practices violate the consent order or any other federal laws. He also asked them to investigate the “contents of contracts between insurance companies and facilities listed in their direct repair programs or preferred lists.”




Ed Lupinek, an auto body repair shop owner, demonstrated a startling difference in strength between a bumper reinforcement beam that is from the original equipment manufacturer – known as an OEM part - and one that is “after-market” or counterfeit. He couldn’t bend the OEM beam with all his might, but bent the other with just a pinky. The difference in price between the two is about $90.




Blumenthal and the vehicle experts noted that in today’s world, disruption to a beam could affect many other computer and electronic components of a vehicle.



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Gary Hart, can you please send this government official a message,

pertaining to what have going on in the Auto glass industry?

Keep the ball rolling. If the momentum dies, so will any possible changes

Yes, the IGA is drafting a letter to all involved on behalf of the industry and its members. We will be discussing this and the draft and final version over on the **** since we can deal with documents on this message forum.

From CNN
http://www.cnn.com/2015/02/19/politics/car-insurance-scam-justice-department/

Wasn't this settled years ago under CAPPA parts?

The Certified Automotive Parts Association (CAPA) is a non-profit organization established in 1987 to develop and oversee a test program guaranteeing the suitability and quality of automotive parts. CAPA encourages competition in the marketplace in the hope that their program will ultimately reduce expense to the consumer and the industry while increasing and assuring part quality.

Let's be clear on what my opinion is on this right here and now.

CAPA is not our friend.
CAPA is an insurance industry puppet, nothing more.

Research fully and you'll see why I believe this. Certainly no one in the collision industry, outside of insurance pundits, would disagree with me.

Webbie, no statements are made here to violate the rules of posting. My personal opinions are stated, along with an invite for folks to do their own research.

Of course, as always, this is JMHNLO.

I will be contacting both of our Senators in Illinois and asking them to support Sen. Blumenthal. Just think what would happen if all Senators got behind the effort....

Mark, I totally agree with you. I wanted to bring this up for those that forgot about them.