Registrations revoked for fraudulent storage practices
The Bureau of Automotive Repair (BAR) has revoked the registrations of two automotive repair dealers in Los Angeles County. These actions came after BAR investigations into consumer complaints alleging excessive storage fees.
BAR's investigation into Airport Collision RPR & Tow, Inc. in Inglewood revealed the business formed relationships with tow truck drivers to direct vehicles involved in collisions to their shop. The business then performed teardowns—a repair transaction that involves the disassembly of a vehicle or its components to determine all needed repairs—prior to obtaining authorization from the consumers. Consumers attempting to pick up their vehicles were given estimates that did not comply with the Automotive Repair Act. Their vehicles were then held to accrue illegal storage and other miscellaneous fees unless they authorized further repairs. The investigation also confirmed Mike David Miller, the business’ president, made false statements to gain the lien sale of a consumer’s vehicle. Read the decision on this matter for further details.
In a similar case, Mid Valley Automotive in Van Nuys provided consumers blank estimates after their vehicles were towed to the shop following collisions. The business failed to disclose that storage fees would be charged in an attempt to keep vehicles for as long as possible. When the consumers came to retrieve their vehicles, they were given non-compliant invoices that included unreasonable storage fees—such as administrative and gate fees—and other miscellaneous fees that were not authorized. In multiple instances, the business refused to release the vehicles when requested by the owners and continued to charge storage fees. BAR's investigation also found instances where the business charged for repairs that were never performed or were not done correctly. Read the decision on this matter for further details.
These cases highlight the ongoing issues related to storage and towing services and the need for regulations to enhance consumer protections. BAR is currently working on developing regulations, as authorized by Assembly Bill 1263 (Berman, Chapter 681, Statutes of 2023), to clarify its authority in this area. The proposed regulations aim to set clear guidelines for storage and towing fees charged by automotive repair dealers. This will help ensure transparency and fairness for consumers across the state. To learn more, see Legislations and regulations update.
As BAR continues to develop the new regulations, we remain committed to protecting consumers and taking action against unscrupulous businesses. The revocation of these businesses' registrations serves as an advisement to licensees that BAR will not tolerate deceptive practices. In all transactions, the consumer’s authorization is required before work or charges can begin.
To stay informed about BAR regulations, subscribe to BAR's email list and see Regulatory actions. For guidance information on storage fees, see Automotive repair dealers and storage fees.