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LYNX 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 be handled.

"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 possibility—but 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 change.

"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."

CLICK HERE for the full text of the memo from LYNX.

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