KNBC-TV
6:36 p.m. PDT September 20, 2006
A major auto repair chain is in big trouble with the state of California. The Bureau of Automotive Repair is now seeking to shut down all 76 EZ Lube stores in Southern California. This is partly a result of an undercover investigation by Joel Grover three years ago.

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JOEL GROVER: The state's case against EZ Lube is laid out in a huge accusation. The state began to investigate EZ Lube after watching our NBC4 investigation into this fast growing chain.

They're in almost every Southern California neighborhood... EZ Lube stores, offering cheap and quick oil changes.

But former managers have been telling us for years that cheating is rampant.

That's what we uncovered three years ago when we took undercover test cars to EZ Lubes? just for an oil change.

But at a Costa Mesa EZ Lube, they told us we need $200 worth of repairs, like flushing the transmission fluid.

UNDERCOVER VIDEO (EMPLOYEE): ?should be nice and red. You see how bad it is already.

JOEL GROVER: In fact it was bright red because our own expert had just changed it.

The Bureau of Automotive Repair began it's own investigation after seeing our undercover tape. They sent test cars to 29 EZ Lubes -- cars in great condition. But the state says every EZ Lube tested tried to sell them repairs that weren't necessary, like radiator flushes and new filters. And, sometimes, they failed to replace parts they charged the customer for.

The state says its case could result in local EZ Lubes being shutdown, at least temporarily, and that some customers could get refunds as part of a possible settlement.

EZ Lube would not go on camera. But the company's lawyer told me the state's charges are quote "bogus and wrong," and they intend to fight them. The case is now in the hands, of the California attorney general.