Car repairs are expensive enough without being tricked into paying for services you don’t need or trapped in predatory loans. Yet many major auto repair chains have been caught using deceptive tactics to squeeze more money from customers. Here’s what you need to know to protect yourself from these widespread predatory upselling practices.
1. Jiffy Lube
Jiffy Lube, one of America’s most recognizable quick-service chains, has faced numerous accusations of unnecessary upselling. A CBC Marketplace investigation used hidden cameras to expose how some Jiffy Lube locations promote unnecessary maintenance services, such as transmission flushes and air filter replacements, that vehicles don’t require.
Former service advisers have admitted that employees often work on commission, creating financial incentives to sell services regardless of necessity. “When you’re a service adviser, you are a salesperson,” explained Lucas Leung, who worked at multiple dealerships. “You have to upsell them.”
2. AAMCO
AAMCO, specializing in transmission repairs, has been flagged by consumer advocacy groups for both unnecessary service recommendations and predatory financing practices. According to the National Consumer Law Center, AAMCO locations have been steering customers who can’t afford repairs into loans with interest rates as high as 189% through partnerships with EasyPay Finance.
These loans often come with deceptive promises of interest-free periods but contain hidden fees and obstacles that make it nearly impossible for consumers to avoid the astronomical interest rates, even when they attempt to pay within the promotional period.
3. Meineke
Meineke has faced similar accusations of predatory practices. Consumer Reports found that Meineke locations were among several chains steering financially vulnerable customers into exploitative financing arrangements. The company’s franchisees have been called out for recommending unnecessary services and then offering “helpful” financing options when customers can’t afford the inflated bills.
Former employees report pressure to meet sales quotas, leading to recommendations for services that vehicles don’t need or that could be delayed without safety concerns. This creates a double-trap for consumers: first with unnecessary services, then with predatory loans.
4. Midas
Midas, known for mufflers and brake service, has been accused of condensing manufacturer maintenance schedules to convince customers they need service sooner than actually required. A coalition of consumer advocacy groups sent letters to Midas urging them to stop offering financing through EasyPay Finance and TAB Bank.
Complaints to the Better Business Bureau and Consumer Financial Protection Bureau describe Midas locations hiding interest rates in fine print or not disclosing them until after repairs are completed. Military service members and veterans have been particularly targeted with these high-interest loans.
5. Precision Tune Auto Care
Precision Tune Auto Care locations have been caught using misleading terms like “factory required maintenance” for services that are neither required to maintain warranty coverage nor recommended by vehicle manufacturers. The Jalopnik website reported that Precision Tune was among chains offering payment plans through shady loan companies charging predatory interest rates.
These loans target people with bad credit at their most desperate moment – when facing an unexpected car repair they can’t afford to pay out-of-pocket but need to keep their vehicle running.
6. Big O Tires
Consumer advocates have identified Big O Tires as another chain whose franchisees steer customers into predatory loans. The National Consumer Law Center found that Big O locations were offering financing through EasyPay Finance, which uses Transportation Alliance Bank to evade state interest rate caps.
Customers report electronic debits that weren’t authorized, rude customer service, and administrative errors that led to missed payments and loss of interest-free options. Many consumers discovered the true cost of these loans only after it was too late.
Protecting Yourself From Auto Repair Scams
The best defense against predatory upselling is knowledge. Read your vehicle’s owner manual to understand the actual maintenance schedule. Get written estimates before authorizing work, and don’t be pressured into immediate decisions about additional services.
If you need financing for repairs, explore credit union loans or credit cards before accepting financing offered at repair shops. And if you believe you’ve been victimized by predatory practices, file complaints with your state attorney general’s office and the Consumer Financial Protection Bureau.
“These predatory loans have a lasting impact on consumers, causing harm to their credit reports and leading to debt collection harassment,” warns the Center for Responsible Lending. The financial damage from these practices can last far longer than the repairs themselves.
Have you experienced pressure to get unnecessary repairs or been offered suspicious financing at an auto repair chain? Share your story in the comments below.
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