Amends Participant Contract
LYNX Services has notified participants in its program that effective
Monday, March 10, it has changed its participant contract to note
that a standard service charge "may" be deducted from the payment
made to shops.
The exact wording of the change is as follows:
"To meet competitive market conditions at specific Companies,
a standard service charge may be deducted from the payment made
to Participant as follows."
Previously, the sentence read as follows:
"Unless claim processing is paid by the Company directly
to LYNX Services, a standard service charge will be deducted from
the payment made to Participant as follows."
"The new language intent is to allow a processing fee to be
shared between parties," says Steve Shaw, manager, marketing
participant services, for LYNX Services.
He adds that this doesn't change the way any existing claims will
"At this time there is not any change to any insurance company
program, meaning there is no fee being implemented on any existing
claims," Shaw says. "If a source of work in the future
included a fee to the retail shop, there would be an announcement
at that time."
The remainder of the paragraph in which this statement is included
remains unchanged; the fees will stay the same, but now may be shared
by the retail shop.
Shaw also notes that the fee is only a possibilitybut is
not an overall change.
"Now, as we are developing new service channels, and especially
where more drivers are self-insuring and the market is changing
in numerous ways, we see opportunities where we will need additional
flexibility when it comes to the sources of revenue needed to run
our business," he says. "Therefore, we are making a contract change
to say that LYNX may implement new hybrid fee scenarios in which
a portion of revenue may come from an insurance carrier or fleet,
and a portion may come from participating shops."
Shaw notes that the change should not be interpreted as a major
"LYNX is not broadly implementing any sweeping change to its fee
structure," he says. "Moreover, it's very important [to] understand
that this has nothing to do with the contracts [shops] may have
with either State Farm or Allstate, whose glass programs we are
privileged to administer."
HERE for the full text of the memo from LYNX.
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