Glasslinks |
Auto Glass Legal News |
September , 1999 |
| Montana Glass Broker Denies Unfair Trade Practices State alleges companies illegally help customers avoid Deductibles By David Crisp A Billings auto glass broker denies the state's allegations that his company is illegally helping customers avoid paying insurance deductibles. In a news release, the Montana Department of Commerce and State Auditor Mark O'Keefe alleged that Montana Auto Glass in Billings was among Montana businesses that engage in unfair trade practices in an attempt to funnel insurance-related business to their companies. "Montana law specifically outlaws the practices we allege these businesses are taking part in," Mr. O'Keefe said. "We believe in maintaining a level playing field, so smaller shops can have a legitimate shot at making it in the marketplace." Hearings were set for Aug. 9-11 in Helena, but they have been delayed at least until the end of August, said Gary Spaeth of the Auditor's Office. Frank Kuhn, owner of Olympic Auto Glass, which is the parent company for Montana Auto Glass and Montana Auto Glass Specialists Inc., denied any wrongdoing. "We are an aggressive marketing company," he said, "and my feelings are that my competitors want to get rid of me, and this is their angle on it." The state's action has, in fact, drawn support from Truman Strouf, president of the Montana Independent Glass Dealers Association. In a letter to newspaper editors, Mr. Strouf said the association supported efforts in the last legislative session to clarify laws about how dealers handle deductibles. He said that "honest Montana consumers are punished through higher insurance premiums when a few individuals are able to avoid paying the insurance deductible." The state claims that the Billings business, as well as Cascade Auto Glass, offers to pay $100 to consumers or allow consumers to use the $100 to avoid paying insurance deductibles. The offer, the state alleges, "is clearly intended to reduce the insured's net cost by reducing the deductible the insured is responsible for under the insurance policy." State law, the state says, forbids auto glass shops from offering to pay all or part of an insurance deductible. Mr. Kuhn, however, contends that his business legally gives $100 cash back to all customers, whether or not they are covered by insurance. "That money belongs to the customer and my company," he said. "It doesn't belong to anybody else." Mr. Kuhn said he had received no complaints from consumers or insurance companies. "You can't bill insurance companies more than they want to pay," he said. "It can't be done." He also contended that the state hasn't taken on other glass brokers who rebate deductibles. But Mr. Spaeth of the Auditor's Office said the state has pursued other cases it has heard about. One Billings company, Pinnacle Collision & Glass, lost a hearing before the state, then appealed to district court, he said. The company is expected to comply with the clarified law when it takes effect Oct. 1, making the case moot, he said. Also see related July Article from State of Montana
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source: The Billings Outpost |