Legal Question in Business Law in California
Overcharged/Unfair Billing
My sister took her car in to get serviced at a dealer/body shop. She told them that she needed her timing belt replaced. They gave her an estimate, and a ridiculous one at that. They called five hours later to tell her she needed other things replaced. She ended up paying a ridiculous amount... nearly seven hundred dollars (most for ''labor'') when they told her the total cost. She thought it seemed overpriced, but felt too imtimidated to say anything. I would like to know if there are any laws against that.
2 Answers from Attorneys
Re: Overcharged/Unfair Billing
Any laws against what?
There is certainly no law against asking too high a price. Price competition is part of the free market for repair services.
The shop did the right thing by phoninig for authorization on the additional repairs. Saying "yes" to the proposed additional work made a binding contract.
I can think of two or three things which would be illegal if they happened, but your facts do not point to any of them:
(1) The hourly rate was not posted or otherwise disclosed at the outset;
(2) The additional work recommended was in fact unnecessary and the shop's estimator knew it was unnecessary at the time it was recommended;
(3) Services were charged for but not performed.
Otherwise, the transaction you describe looks perfectly legal and proper. If your sister is paying for the work and a timing belt was due, the car is evidently out of warranty and not new. I don't think a $700 repair bill is unusual at all.
Also, dealers and body shops tend to have higher rates than independents, the former because of higher overhead including better-trained mechanics, and the latter (perhaps) because they do a lot of insurance work.
Re: Overcharged/Unfair Billing
While I cannot directly address the total cost, California has a great tool to address auto repair practices and that is the Bureau of Automobile Repair. Auto repair shops can charge what they believe is right for the work they do and for the location. Competition keeps prices down. They did contact your sister to request approval on the additional work and she gave them the approval. Their practices as noted, do not provide clear proof that anything was out of order.
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