Class Action Blog : Consumer Fraud, Consumer Protection, Securities and Antitrust Lawyer & Attorney : Meiselman, Denlea, Packman, Carton & Eberz

Connecticut Attorney General Richard Blumenthal on Tuesday sent a petition to U.S Attorney General Eric Holder urging him to investigate insurance companies that steer auto repair customers to body shops of their choosing.   According to a 1963 Consent Decree with the U.S. Department of Justice insurers were ordered to stop sponsoring any appraiser, directing, advising or otherwise suggesting that any person or firm do business with any independent or dealer-franchised automotive repair shop, exercising control over the activities of any appraiser and fixing or controlling the prices charged by automotive repair shops for the repair of damage to a vehicle or for labor in connection therewith, by use of a flat rate.

Blumenthal said companies that deny consumers the right to choose their own auto repair shop may be breaking both federal and state laws.  "Practices pressuring consumers to use insurers' preferred repair shops suppress consumer choice and disregard legal duties," he said.  Indeed, insurance companies that deny consumers the right to choose the most appropriate repair facility for their car may be breaking the law.

If you are a consumer who was denied by an insurance company the right to choose the most appropriate auto repair facility for your car, please contact us to discuss your legal options.

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State insurance regulators in Michigan have charged two businesses with selling fake health insurance policies, and the Georgia Insurance Commission issued cease and desist orders to two organizations allegedly acting as unlicensed insurers.

The Michigan Office of Financial and Insurance Regulation (“MOFIR”) ordered American Consumers Insurance (“ACI”) and its partner agency, Real Benefits Association (“RBA”), to stop selling allegedly fake health insurance policies.  The allegedly fake policies, which were marketed through radio advertisements, were sold in Michigan, Arkansas, New Jersey and New York.  “Basically these consumers [who purchased health insurance] were holding worthless pieces of paper,” said Jason Moon, a spokesman for MOFIR.  Regulators have also advised consumers who purchased health insurance coverage from ACI and RBA to immediately seek out and purchase legitimate medical insurance.

In Georgia, the Insurance Commission issued cease and desist orders to The Butler Aid Society and God First Missionary Membership Association and Floral Club.  Both organizations offered cash payments to members upon death, though neither entity is a licensed insurance company or registered as a pre-need funeral business.  “There’s a serious financial risk to consumers whenever you have a small operation like this, run out of somebody’s hip pocket without proper capitalization and regulatory oversight,” said Insurance Commissioner John W. Oxendine.

If you have purchased a health insurance policy through ACI and/or RBA, or a policy from The Butler Aid Society and/or God First Missionary, please contact us to discuss your legal options.

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