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Federal Lawsuit Filed Against Insurance Companies Over Billing Practices

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(iStockphoto)

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DETROIT (WWJ) – A local business owner cries foul over what some insurance companies are doing.

As Newsradio 950’s Stephanie Davis reports, a federal lawsuit has been filed.

At issue, Mark Wad of Mark’s One Car Rental claims the big insurance companies have stopped direct billing from his business and other small independent shops that service Detroiters and minorities.

“Some of my customers pre-pay me, upfront, and then they get reimbursed by their insurance company and a lot of them are not coming to me any more because they don’t have the money to pay upfront,” he said.

He says his customers have been encouraged to use Hertz or Enterprise.

Wad filed the lawsuit in federal court against several insurance companies, among them, AAA and Nationwide.

WWJ has placed calls into both for a response to this story with no comment thus far.

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