Auto Repair Fraud and How to Avoid It

Last summer, the charges brought against Sears highlighted many of the problems that consumers confront in taking their cars in for automotive repairs. Serious questions were raised regarding the pervasiveness of automobile repair fraud in America.

The problems of automobile repair fraud are national in scope. The Sears case alone resulted in actions by 43 different States.

Following the hearing of last year, the National Associations of Attorneys General established an automotive repair task force to examine the issue from the State perspective and to coordinate enforcement efforts. As part of the settlement with Sears, the National Association of Attorneys General received $200,000 to create an automotive repair industry reform fund.

Given the sophisticated equipment in most automobiles today, it is no wonder that consumers find themselves at the mercy of auto repair shops, and are often left wondering whether the $500 they just spent for repairs was necessary, or was it just money that was wasted?

Even if a given repair was necessary, questions often linger over whether the repair was properly performed, and whether, indeed, the repair will last for a period of time.

Because of this situation, undercover sting operations are one of the most effective methods for discovering abusive practices and are extremely useful for their deterrent effect.

While it is clear that the routine trip to the auto repair shop is every consumer's nightmare, it is less clear how to remedy the situation.

So straight away, right off the top, make sure you understand everything you are being told. Get an estimate, and get it in writing. Before you authorize anything beyond that estimate, make sure the mechanic gets your direct approval.

Before you have the work done, check around. At the very least, call around. Find out what other mechanics think of that estimate. Is it a rip-off, or isn't it? Other mechanics might have an opinion that is a little bit better than your own.

Also, before you go ahead and have that work done, talk to the mechanic. Tell him you want your old parts back. It may not guarantee that you will not be ripped off, but it will put the mechanic on the defensive. It will tell him that you are no idiot.

At one shop we went to, the repair man simply said he could not provide us with our old parts. That is a tip-off right away that something unusual is going on.

Also, a couple of the shops we went to, we got an estimate before the mechanic even looked under the hood. That should be another tip-off that something sneaky may be going.

Also, another important question to ask is, how much are they going to charge for those new parts? Some shops will charge you only list price. However, at a number of other shops we got stung for as much as two-and-a-half times list price.

Obviously, it is better to be armed with knowledge and a checklist of how to approach a car repair, rather than being an obvious victim.