WASHINGTON, SEPT. 20, 2006 - "The devastation of Hurricane Katrina highlighted the continuing problem of flooded and damaged cars being improperly sold to an unsuspecting public," said Rep. Cliff Stearns (R-FL), Chairman of the Commerce, Trade & Consumer Protection Subcommittee. "Unscrupulous individuals take advantage of different state titling requirements for autos by acquiring 'clean' titles on damaged vehicles that they resell without disclosure to the buyer." Stearns' subcommittee held a hearing on this problem, with witnesses testifying on this fraudulent practice.
Stearns has offered H.R. 6093, the Damaged Vehicle Information Act, which requires the Secretary of Transportation to develop rules requiring public disclosure of damaged vehicles. It also requires any persons who terminate a contract on a passenger motor vehicle for reasons related to damage or theft must disclose to the public, in a commercially feasible way, the information on that vehicle.
"These flooded and damaged cars cost consumers money who pay above the fair market value and they threaten their safety," added Stearns. "Information is the best response to this fraudulent practice."
For Further Information Please Contact Paul Flusche at 202-225-5744 or Email.
