By Martin H. Bosworth
ConsumerAffairs.com
December 22, 2009
A campaign led by Santa Monica, California-based Consumer Watchdog, is gearing up to oppose a proposed state ballot initative that they claim will add hundreds of dollars to drivers' monthly insurance premiums.
The Campaign for Consumer Rights claims that Mercury Insurance, the primary funder of the initiative, wants to penalize anyone who has had lapsed auto insurance coverage by charging them more when they reinstate it.
On their Web site, StopTheSurcharge.org, they claim the proposed initative would gut previous state laws preventing drivers with lapsed coverage from being penalized.
The campaign claims that even people who let their insurance lapse due to difficulties making ends meet, or those in special circumstances such as soldiers or senior citizens, would be penalized.
"StopTheSurcharge.org provides a vivid picture of Mercury's priorities. While Californians are looking for new ways just to make ends meet, [Mercury executives] George Joseph and Gabe Tirador are scheming...on how best to cheat customers out of their hard-earned cash," said Douglas Heller of Consumer Watchdog. "We urge all California drivers to take a look at StopTheSurcharge.org and see exactly what Mercury has in store for us in the new year."
The group posted pictures of Mercury founder Joseph and CEO Tirador's mansion homes, and included a "special holiday message" for the 363 Mercury employees the company had laid off.
"George and Gabe must have needed the money for their gardeners," they said. "Best of luck in the New Year!"
Consumer Watchdog has been a frequent foe of Mercury Insurance. In August, the group posted a billboard in downtown Los Angeles proclaiming that "You can't trust Mercury Insurance." Although the billboard did not violate any terms of the group's contract with provider CBS Outdoor, it was nonetheless taken down under pressure from Joseph, the company said.
The nonprofit, nonpartisan advocacy group later criticized Attorney General and 2010 gubernatorial candidate Edmund G. "Jerry" Brown for allegedly softening the terms of the ballot initiative in Mercury's favor, after the company made a substantial contribution to his campaign.
Brown's former spokesperson Scott Gruber was forced to resign after taping conversations on the matter between himself and San Francisco Chronicle reporter Carla Marinucci without her consent.
ConsumerAffairs.com frequently receives complaints about Mercury Insurance from disgruntled customers. Dylan of Rancho Cucamonga, CA, wrote that his brand-new Chevy Avalanche was rendered undrivable after a collision, and that Mercury agents dealing with the claim were unprofessional in their dealings with him.
"I cannot believe the utter disrespect and lack of professionalism from a company that is supposedly collecting my money every 6 months under the false pretense they will provide assistance in the event of an auto accident," he said. "To this very minute Mercury has yet to begin any processes in recovering my damages or assisting me."
Even California's own regulatory agencies are wary of Mercury Insurance. In a legal filing from the state's Department of Insurance, the agency noted that "Among Department [of Insurance] staff, consumer attorneys, and consumer victims of its bad faith, Mercury has a deserved reputation for abusing its customers and intentionally violating the law with arrogance and indifference."
