SEAR'S AUTO FRAUD

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SEAR'S AUTOMOBILE FRAUD

"The state is suing Sears, Roebuck and Co., (an AP article reported), claiming it cheated hundreds of customers at its New Jersey auto repair centers by charging for work that was never done or unnecessary.   State Attorney General David Samson filed a fraud complaint Thursday against the Hoffman Estates-based company after a two-year undercover investigation at 19 auto centers in New Jersey.  State investigators found more than 350 instances of violations of the state Consumer Fraud Act, Samson said.  The investigation found that Sears auto centers charged for four-wheel alignments on vehicles that were built for two-wheel alignment. Other customers complained they were told they would receive a free inspection, only to be charged later for repairs.

This was a pattern of misleading consumers," said Gov. James E. McGreevey, who joined Samson in announcing the complaint.  The complaint was filed against Sears and gives specific allegations of fraud at centers in Livingston, Jersey City, Toms River, Union, Phillipsburg and Deptford.  Investigators contacted customers who had repairs done at Sears after records were subpoenaed, Samson said.

A Sears spokeswoman said the company will take action if the allegations are true...   "We take the allegations very seriously and if we find they are correct, we will take immediate action to make this up to any affected customers," said spokeswoman Peggy Palter." Hennesy, N.J. sues Sears auto centers for fraud, 10/11/02 Courier News. 

Another article reported, "Customers were charged for four-wheel alignments on vehicles for which such service was impossible. Sears failed to obtain consumers' authorization before completing work, including numerous instances in which customers were charged for repairs after being told they were getting free inspections. Defective repairs were performed, including failing to tighten lug nuts and/or resurfacing brake rotors to the point where they were below manufacturer specifications. Deceptive or misleading statements were made to entice consumers into authorizing and paying for unnecessary repairs.

Consumers weren't provided written estimates. "This was a systematic pattern of misleading consumers," McGreevey said.  The suit follows a two-year undercover investigation of 19 Sears Auto Repair centers in New Jersey and an analysis of repair records the state subpoenaed from the company, Samson said. Regulators uncovered more than 350 violations of the Consumer Fraud Act, and additional violations, which would be added to the initial suit, are likely as officials inspect more documents, he said.  Although the investigation is continuing, the state filed the suit now "to stop what we believe to be a far-reaching pattern and practice of fraud at Sears Auto Repair centers," Samson said.  The complaint lists auto repair centers in Livingston, Jersey City, Toms River, Union, Phillipsburg, and Deptford. Additional locations may be named later, the state said.

'No Corporate Policy' Sears is investigating the charges, spokeswoman Peggy Palter said. "We take the allegations very seriously, and if we find they are correct, Sears will take immediate action and make this right with any affected customers," Palter said. "I can assure you there is no corporate policy regarding performing unnecessary services. We strive to be in compliance with all state and federal regulations." This is the second time in the past decade that the state has charged Sears with fraud in its auto repair business.

In June 1992, New Jersey and California sued the company after separate investigations found Sears auto centers had recommended unnecessary and often expensive repairs so employees could meet sales quotas, officials in both states said.  http://www.crmdaily.com/perl/story/19652.html

Claims

Persons who had work done at Sear's may be eligible for recovery. Contact our office for a free consultation.

QUALIFICATIONS AND EXPERIENCE OF THIS LAW OFFICE

Howard A. Gutman has successfully handled over 200 lemon law and automobile breach of warranty cases. He is the author of the leading article on the lemon law published in the New Jersey Law Journal. He also wrote the Year 2000 Legal Handbook, a book dealing with computer warranties, and is considered a leading authority on all types of warranties.

Prior to establishing his practice, Mr. Gutman was employed by one of the leading law firms in New Jersey and a prominent international law firm located in the Wall Street area. He has appeared on Good Day New Jersey been interviewed by NBC Nightly News and Newsday, and his cases have been profiled in the Star Ledger, Bureau of National Affairs Magazine, and New York Times.

HOW DO I CONTACT YOU

Law Offices of Howard A. Gutman,
1259 Route 46, Parsippany, New Jersey 07054
(973) 257-9400, E-mail
Howian@aol.com
Fax (973)257-9128

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