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Recyclers News Press
Louisiana Files Suit Against State Farm
Attorney General of Louisiana filed suit against State
Farm Insurance last week alleging the insurer has vio-
lated the state's Unfair Trade Practices and Consumer
Protection Law by steering consumers to direct repair
providers that have signed agreements with the insur-
ance company. State Farm currently holds the largest
share of auto insurance policies in Louisiana and in
2012, wrote one third of all auto insurance policies in
the state totaling over $1 billion in premiums.
The lawsuit alleges State Farm is using scare tactics to
steer Louisiana consumers to preferred repair shops.
State Farm has seen several other lawsuits recently
targeting its direct repair program, PartsTrader. The
Louisiana lawsuit also alleges that the insurance pro-
vider is forcing its preferred shops to perform vehicle
repairs cheaply and quickly, using sub-standard parts
and methods that may not meet consumer safety and
vehicle manufacturer performance standards. In re-
marks about the lawsuit,
Attorney General Buddy
Caldwell made disparaging comments about the
utilization of recycled, genuine OEM parts,
saying
that State Farm deceives customers by steering them
to use cheaper or used auto parts, or parts found to be
knock-offs of questionable quality.
Caldwell's comments about recycled OEM parts are
similar to those made in 2011 by West Virginia's then-
Attorney General Darrell McGraw in reference to a law-
suit against Liberty Mutual Insurance Company. In De-
cember 2011 West Virginia filed a complaint and peti-
tion for injunction against Liberty Mutual Insurance
Company and Greg Chandler's Frame & Body, LLC,
alleging that the defendants violated the state's Auto-
motive Crash Parts Act and Consumer Credit and Pro-
tection Act by repairing new vehicles using salvage
crash parts without obtaining the written consent of the
motor vehicle owner at the time of the repair. ARA
wrote to the AG to express disappointment about
statements published by McGraw's office, specifically
objecting to references classifying recycled/salvaged
parts to "junkyard parts".
In June the West Virginia Supreme Court of Appeals
ruled that the state's Automotive Crash Parts Act does
not apply to the use of salvage/recycled OEM parts
and as such, affirmed the use of salvage/recycled
OEM crash parts in vehicle repairs. The Court found
neither statute prohibited body shops or insurers from
utilizing these parts, and, moreover, applauded the in-
surers for using measures to reduce premium costs for
their customers. ARA will continue to actively monitor
this issue and will be reaching out to the Louisiana At-
torney General's office regarding Caldwell's misleading
characterization of recycled parts.
AZ-ARA Hosting Charity Golf Tournament
In October 2004, Wendy was diagnosed with breast
cancer and underwent a lumpectomy, followed by 6
chemotherapy and 34 radiation treatments. The lum-
pectomy was successful, and her doctors believed she
was in remission; in August 2008, her left arm started
aching. Wendy was with a group of friends and they
decided to ride a mechanical bull. She was thrown
from the bull and landed directly on her left shoulder.
She went to the doctor and an MRI showed that her
breast cancer had metastasized to bone cancer in her
arm. The cancer was not curable, but treatable. To
this day she thanks the mechanical bull.
ARA members have an
opportunity to help
Wendy Wilson in her
battle against cancer.
On October 11, 2014,
the
is hosting a
golf tournament at Gold
Canyon Ranch in
Apache Junction, Arizona to raise funds to help Wendy
with her medical expenses. To participate, please com-
plete a
To read the complete
story, please
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