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BodyShop Business Blog

September 2008 - Posts

  • Assignment of Proceeds Review

    I just wanted to say thank you for your enormously positive response to our new Web TV show, "Crash Central." The first series of episodes on "assignment of proceeds" have prompted many of you to ask even more questions about this legal procedure designed to allow a body shop, on behalf of the consumer, to recoup the full amount of payment an insurance company owes for a repair. I've tried to answer a few of those questions below:

    1. Can I use "assignment of proceeds" in my state?

    Erica Eversman said in Episode 3 that she believes that, as a general principle, assignment of proceeds is the type of thing that would be commonly upheld in the vast majority of states. The reason, she said, is because the idea of assignment of proceeds is embedded in "common law," which is the law that spawns from case law versus statutes and regulations. The only time she believes there might be an issue is if a state has a law that specifically prohibits this type of action, but she said she would be very surprised if that was the case.

    2. Where can I get a form for my customer to sign?

    I as of yet do not know of a form for use but I'm working on obtaining one. On the show, Erica said the form could be something very simple typed or written up by you and signed by the consumer. Stay tuned for more information.

    Are we advocating that every single body shop in the country pursue this legal action? No. It may not be something appropriate for everyone to do. As information providers and guardians of your profitability, we are simply providing you with the knowledge of a previously unknown legal maneuver which may allow you to recover monies you are owed.

About the Author

Jason Stahl has 14 years of experience as an editor, the last two serving as editor of BodyShop Business. He currently serves as an advisor to the Paint, Body and Equipment Specialists Committee of the Automotive Aftermarket Industry Association and is a gold pin member of the Collision Industry Conference. Jason, who hails from Cleveland, Ohio, earned a bachelor of arts degree in English from John Carroll University in 1994 and started his career in journalism at a weekly newspaper, doing everything from delivering newspapers to selling advertising space to writing articles. In 1999, he broke into trade publishing with a five-year stint at Advanstar Communications. In his spare time, Jason enjoys playing golf and spending time with his two children.

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