Auto Repair Complaint Settled
Parnelli Jones Inc. agreed Thursday to pay $800,000 to settle charges that it has bilked auto repair customers throughout California.
The charges stem from a two-year undercover investigation conducted by the state Bureau of Automotive Repair, which said its agents were overcharged an average of $218 for repairs not needed or work not done.
In a statement, Parnelli Jones President Dan Beach denied the allegations. He said the company agreed to settle because it could not afford prolonged litigation.
Parnelli Jones, based in Ventura, has 50 auto repair facilities in the state, 23 of them in Southern California. The privately held company has annual sales of about $32 million.
It is the third well-known firm to be charged with auto repair fraud in California in recent years. Two years ago, Sears, Roebuck & Co. paid $8 million to settle similar charges. Last year, Winston Tire paid $1.4 million to settle allegations of overcharging.
The bureau said it sent undercover agents to 22 Parnelli Jones outlets, including one each in Pasadena, Torrance, Anaheim and Buena Park. The agents were overcharged 90% of the time, the bureau said.
The cars used in the investigation needed modest repairs, typically new brake pads and alignment, the bureau said. Besides doing what was needed, Parnelli employees sold the agents unnecessary parts and services, the bureau said.
For example, a Pasadena store allegedly overcharged $427.25 for brake calipers, front and rear shock absorbers and semi-metallic brake pads. The agent was also charged for an alignment not performed, the bureau said.
Parnelli also agreed to a one-day suspension of its operating license. The settlement includes $250,000 in fines, $229,000 to pay for auto repair programs, $309,000 for investigative costs and restitution and $25,000 for a consumer protection trust fund administered by district attorneys. Parnelli must also make restitution to the 35 customers whose complaints prompted the probe. The bureau will investigate future complaints, a spokeswoman said.
