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Mass. Regulator To Investigate Allegation Of Lowball Car Appraisals That Could Be Costing Consumers Hundreds Of Dollars

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A complaint filed by Source One Financial Corp., a Norwell auto lender, alleges that CCC appraisals often understate car values through sloppiness or fraud. Michael Parsons is Source One's CFO. (Robin Lubbock/WBUR)
A complaint filed by Source One Financial Corp., a Norwell auto lender, alleges that CCC appraisals often understate car values through sloppiness or fraud. Michael Parsons is Source One's CFO. (Robin Lubbock/WBUR)

The Massachusetts Division of Insurance has agreed to investigate an allegation that faulty car appraisals by a widely used company are routinely costing drivers hundreds or even thousands of dollars in claims on totaled or stolen vehicles.

The decision to investigate was not public until WBUR reported it last week. The probe was prompted by a complaint about Chicago-based CCC Information Services. Many leading insurance companies in Massachusetts and other states hire CCC to estimate what totaled cars were worth before being wrecked or stolen.

Insurers use the appraisals to help determine how much money to pay policyholders to cover the costs of replacement cars.

The complaint was filed by Source One Financial Corp., a Norwell auto lender.

Guest

Michael Parsons, chief financial officer at Source One Financial Corp.

This segment aired on February 26, 2019.

Related:

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Callum Borchers Reporter
Callum covered the Greater Boston business community for Bostonomix.

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