ASW Conversations: Addressing warranty fraud in the aftermarket

Automotive aftermarket parts suppliers are increasingly seeing issues around parts warranty fraud — costing the industry $600 million.

To combat the issue, a number of them have banded together to raise awareness among counterpeople, delivery drivers and more professionals more aware of the issue.

They teamed up with the Automotive Aftermarket Suppliers Association to launch www.checkthepart.com to provide info and tips on identifying and reducing fraudulent warranty claims.

Ryan Kooiman, director of training at SMP, Michael Campana, Michael Campana, senior manager for quality at Dorman Products, and Ben Brucato, vice president of engagement at AASA joined Auto Service World Conversations host Peter Bulmer for a roundtable discussion about parts fraud and how the aftermarket is trying to address it.

The first line of defence, Kooiman explains, is to open the box when it’s returned to make sure it’s the parts it says it is, that it’s from the manufacturer it’s supposed to be and that it is indeed a warranty-related issue.

Campana notes that more expensive parts make up a higher percentage of returns. It’s fairly typical to see an OEM part returned with its markings and noticeable wear. The claim is that the part was in service for two months when it failed. “The part clearly has been in service for probably a decade, from the grease and grime.”

And just wait until you hear the types of items found in returned boxes claiming to be a part but are completely different things.

Tune into the latest episode of ASW Conversations to hear more about this “enormous” issue by clicking the banner above or through this link.