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San Antonio based USAA and Longwood insurance adjuster, Fleet Financial Corporation, are settling a lawsuit in which USAA has alleged Fleet committed fraud. The suit also contained charges of theft and racketeering, claiming Fleet inflated claims by more than $1 million.
Fleet, founded in 1989, processes automobile claims for rental car agencies and franchises. When a driver of a rental vehicle has an accident and his personal insurance company will be affording coverage, Fleet adjusts the claim and bills the driver’s insurance for the damages. USAA charged Fleet with charging for parts that were never used, inflating the costs of parts that were used and adding extra labor hours to the bills.
Fleet has denied the charges, but is settling the $10 million lawsuit, due, in part they say, to the high cost of defense.
When the settlement was reached, both sides claimed victory.
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