Consumer Complaints: The Case For or Against Legal Compliance
by Linden Wicklund, AASPMN Executive Director
Spring brings a flurry of legislative activity.
This is the time of year when issues are advanced or squashed, depending on how they align with lawmakers’ agendas. There are two major topics concerning AASPMN members: the interpretation of the new Junk Fees law and the two AASPMN bills regarding insurance regulations. Both issues are primarily about consumer opinion, although that is not normally how we as industry think of them.
The Junk Fees legislation was designed to specifically address issues going on in the entertainment and hospitality industries. For auto service and collision repair businesses, this means shop fees and/or supplies have come under scrutiny. Who is calling shops out and demanding their interpretation of compliance with the law? It is not the Attorney General; it is the customer, YOUR CUSTOMER. This is based on several calls from members with questions about the law after customers have refused to pay shop fees. AASPMN is actively working on a carve out for auto shops in cooperation with the Auto Dealers Association, which would help clarify why and how the current handling of shop fees is compliant with the law. In the meantime, you may find less customer opposition to shop supplies language if you make sure shop supplies and/or fees are included in estimates, and be careful to advertise or post only the total price. This price needs to be inclusive of any cost which cannot be avoided, which is basically anything other than credit card fees, hazardous waste removal and taxes.
When it comes to insurance compliance, which for now does not include warranties, the biggest issue is the customer, not the insurance company. Why would I make this outrageous claim? Because the law is written to protect the customer from insurance abuse, without a harmed customer, there is no violation of the law. AASPMN’s bills for modification to 72A.201 both begin by adding a definition for repairs to include diagnostic and repair verification steps (for example, pre- and post- scans). It is widely known in the industry that these operations are denied by insurance companies. These are operations for which denial is ALREADY against the law. We do not need corrections in the law to suddenly make them violations. The problem is customers are not, or are not known, to be harmed by the current handling of these violations. Accidents are not being tied to these operations being skipped, shops are doing them without pay and thus protecting the consumer. Customers are not notified of the denial by insurance and even if they are, they may not want to put up a fight. I talk to shops and read the files they share, I stay informed about MN crash data, and I meet with the Department of Commerce who has repeatedly agreed that what I share sounds like it could be a violation, but they have not seen meaningful complaints. Most complaints are about the shop being harmed when protecting the customer, which is not a violation of insurance law and thus not something the Department of Commerce can act on.
What is the solution?
One: AASPMN will continue to advocate for shops with proposed legislation, ongoing meetings with government, and by informing shops of the laws to aid in resolution of insurance claims.
Two: Customers must be harmed or the soap box from which shops are yelling is only that, a box. We need some truly pissed off customers who are up for a fight and willing to stand up to their insurance company. While this is not a blanket statement, as a woman around the age of 40, I know there are a great many people in my demographic who are up for a fight! So, the next time a pre- or post- scan is denied, and the customer has some productive fire in them, point them in the direction of the Department of Commerce AND make sure they are harmed, which means the operation was skipped, repairs can’t start or they had to pay out of pocket for that specific operation. There are too many complaints about the shop not getting paid. In a meeting I had this week with the Department of Commerce, leaders stated NO complaints have been investigated about denial of pre or post scans, so they are not sure why we need a change to the law.
So, be mindful of how and when you piss off customers, because the laws are designed to protect them. Customers will stick up for themselves if they are forced.
Come to this year’s AASPMN Leadership Conference and Annual Meeting to talk with your peers about how to tackle this issue and more! (See page 15 for more information).
Benefits in action: AASPMN meets with government officials on behalf of members. Are you ready to help make change? Send us your pissed off customers! We are looking for 10 complaints from customers about insurance denial of pre- and post- scans. The customer must be willing to have the complaint investigated on their behalf and must show harm. AASPMN will submit these complaints together as proof of a systemic issue that needs to be investigated. Email Linden@AASPMN.org or call (401) 330-8845.
Want more? Check out the April 2025 issue of AASP-MN News!