(05/03/2002) Secretary of State Candice S. Miller today announced that seven central Michigan Brake Depot repair facilities have closed after an investigation by the Secretary of State’s Bureau of Automotive Regulation found compelling evidence the shops performed unnecessary repairs and employed uncertified mechanics.

The Brake Depot facilities surrendered their business registrations rather than face a series of administrative hearings seeking to revoke each registration.

Under the terms of the settlement agreement negotiated at the conclusion of the state’s investigation, the Brake Depot facilities paid $13,067.62 in restitution to 18 customers for unwarranted repairs, reimbursed the state $1,390.45 for investigative costs and closed their businesses. The investigation is one of the largest of its kind conducted by the department to date.

"As soon as we knew about the problems with the Brake Depot repair shops, we took immediate action," Secretary Miller said. "It’s a matter of public trust and safety. As the department responsible for overseeing automotive repair facilities, consumer protection is a top priority. People need to be assured that the shops they take their vehicles to, are licensed properly and following the law. We will continue to take swift action against any repair facility that disregards the safety and rights of automotive consumers."

The facilities cited in the agreement are:

• Brake Center of Michigan, Inc., d/b/a Brake Depot, 3285 Bay Rd., Saginaw; Brake Depot, 122 N. Saginaw, Midland; and Brake Depot, 740 N. Euclid, Bay City

• Brake Centers of Flint Inc., d/b/a Brake Depot, 402 N. Mission St., Mt. Pleasant; Brake Depot, 2120 Dort Highway, Flint; Brake Depot, 4261 Miller Rd., Flint; and Brake Depot, 4028 Pierson Rd., Mt. Morris.

The corporation was granted its first registration to open for business in the summer of 1999. By mid-2000, several current and former Brake Depot mechanics and a former facility manager alleged they were fired or forced to quit because they refused to promote or perform unnecessary repairs as required by corporate management.

The department conducted undercover investigations of a Brake Depot shop in Mt. Pleasant and one in Saginaw. The investigators approached the shops using covert vehicles with brake systems that had been rigorously inspected and found to be in perfect working order. In a classic case of fraud, the shops recommended and performed unnecessary repairs on the vehicles totaling more than $750.

Additional evidence mounted against the Brake Depot shops as bureau investigators continued to obtain information from employees and customers. Records from the seven shops were confiscated and examined, customers’ replaced parts were evaluated and mechanics were checked for the proper licensing.

Secretary of State personnel met with Brake Depot representatives in December 2001 to begin negotiations, and the final settlement agreement, which closed all Brake Depot doors, was signed in April 2002.