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Consumer Advocates, Auto Coalition Fight to Keep 'Rebuilt Wrecks' Off Nation's Roadways
WASHINGTON, May 20 /PRNewswire-USNewswire/ -- The National Automobile
Dealers Association (NADA) has joined a diverse coalition of consumer
protection, law enforcement, and auto industry representatives to urge the
U.S. Department of Justice to finalize a critical rulemaking to help
prevent rebuilt, wrecked, flooded, or stolen vehicles from unknowingly
ending up on a consumer's driveway.
Each year, millions of vehicles are totaled, and many of them are
refurbished and return to the road with no record of the vehicle's severe
damage. In an effort to benefit all used car buyers by reducing vehicle
title fraud, Congress passed legislation in 1992 creating a national
information system to link state DMVs electronically and to mandate that
insurers and salvage yards report the VINs of junk and salvage vehicles to
the National Motor Vehicle Title Information System (NMVTIS).
In a May 20 letter to Attorney General Michael Mukasey, NADA, consumer
protection organizations, law enforcement, and auto industry
representatives strongly urged that the Justice Department make the NMVTIS
rulemaking a priority by finalizing the necessary regulations to implement
the insurance and salvage yard VIN disclosure requirements under the
Anti-Car Theft Act as soon as possible.
In addition, the letter urges the Justice Department to make the NMVTIS
data readily accessible to the public (via a Web site or similar electronic
media) without waiting for the rulemaking to occur.
"The auto industry and consumer advocates share the same goal of
ensuring that salvage vehicle reporting requirements are enforced under the
law," said Ivette Rivera, executive director of legislative affairs for the
National Automobile Dealers Association. "NMVTIS presents an important
opportunity to track potentially dangerous salvage vehicles - whether it is
keeping a problem vehicle off a dealer's lot or helping consumers spot a
severely damaged vehicle."
The Justice Department has failed to meet the Congressional deadline of
January 1998 for implementing the rules for the NMVTIS database.
Consequently, vehicle salvage fraud, title-washing and VIN cloning
(switching the VIN of a stolen car with the VIN of a similar make and
model) continues to plague used car buyers.
NADA, founded in 1917 and based in McLean, Va., represents about 20,000
new-car and truck dealers with nearly 43,000 separate franchises, both
domestic and import.
SOURCE National Automobile Dealers Association
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