| Farmington Hills, MI - A statewide petition
drive has been launched seeking legislation to guarantee Michigan automobile owners the
right to select auto glass repair shops of their choice without any steering by their
insurance company. Steering is the process of diverting consumers to particular repair
shops. Thus far, some 38 states in the
United States have anti-steering bills on the books or have issued guidelines banning
steering practices. Michigan is one of the few who does not.
Attorney Jay Schwartz of Farmington Hills, who represents
48 auto glass repair shops throughout Michigan said, "It would be in the best
interests for the citizens of this State to have legislation which would prohibit
insurance companies from steering consumers to specific facilities without the consumer
being aware of the totality of the circumstances".
Petitions will be circulated throughout the State. Its
preamble simply provides that Michigan citizens should "be able to freely use the
automobile glass repair facility of their choice."
The petition asks the Michigan Legislature to enact a law
which would guarantee that insurance companies license to operate in Michigan, or their
agents:
Shall not restrict policy holders access to auto
glass repair or replacement facilities. Shall not require that automobile glass repair or
replacement work be performed by a particular facility, individual or business as a
condition of paying a claim. Must disclose to policyholders that they have the right to
choose a glass shop of their choice. May not intimidate, coerce, threaten or in any way
try to divert or steer claimants to a particular shop. Must promptly provide payment to
the facility based on a fair and reasonable market value (one that is applied to all glass
shops). In an ironic twist, Minnesota based Harmon AutoGlass has specifically cited the
lack of a Michigan law in this area to assist it in a lawsuit pending in Wayne County
Circuit Court. The lawsuit involves a challenge by numerous Michigan auto glass repair
shops and two Michigan consumers to an agreement between AAA and Harmon. In exchange for
operating AAAs call center and rendering other services, AAA gave Harmon the right
to refer a specific percentage of AAA vehicle glass repair or replacement claims to its
own (Harmon AutoGlass) shops. In a court document, Harmon claims:
"While over 30 States have adopted statutes that allow
insureds a right to choose the glass company that repairs or replaces the
individuals auto glass, the State of Michigan has not enacted such a statute.
Consequently, insurance companies operating in Michigan, including AAA Michigan, are not
obligated by statute to provide a right to choose an automotive repair replacement shop to
their insureds." The lawsuit seeks to halt deceptive trade practices and protect the
consumers right of choice. According to the lawsuit, when a consumer calls AAA with
a glass claim, the call center routinely recommends Harmon AutoGlass as the repair shop to
be used. The call center representative does not inform the caller that they are a Harmon
employee. Media outlets in the State, including one investigative reporter who was
actually recommended by the AAA/Harmon call center to one of Harmons shops, have
reported on this practice. Reporters and staff members from the Grosse Pointe News made
numerous calls to the AAA/Harmon call center and were consistently referred to Harmon
repair shops.
Petitions may be picked up at independent glass shops
throughout Michigan or signed directly over the internet by going to the web site www.glasschoice.com.
Press Release Contacts:
Scott Lorenz Westwind Communications
Phone: 248-901-1519 Cell: 248-705-2214
OR,
Jay Schwartz Schwartz Law Firm
Phone: 248-553-9400 |