STEARNS OFFERS THE DAMAGED VEHICLE PROTECTION ACT TO CURB THE SALE OF SALVAGED AND FLOODED VEHICLES TO UNSUSPECTING BUYERS

Washington, Mar 5, 2009 - “I have once again offered my Damaged Vehicles Information Act (H.R. 1257), which would require vehicle identification numbers (VINs) of totaled vehicles to be sent immediately to vehicle history databases so consumers will have complete information on any salvaged or flooded automobile they are looking at buying,” stated Rep. Cliff Stearns (R-Sixth).

The Commerce, Trade & Consumer Protection Subcommittee of the Energy & Commerce Committee today held a hearing on H.R. 1257. Explained Stearns, “We are all aware that title washing, although illegal, is a thriving practice in the used auto market. In 2005 alone, over 5 million vehicles were ‘totaled’ by insurance companies; 500,000 of these were damaged in hurricanes Katrina and Rita. Many of these damaged vehicles are transported from one state to another where the title of the vehicle will no longer indicate that it was damaged. Not only do consumers pay too much for damaged property, these vehicles pose serious safety risks.”

Officials from the Federal Trade Commission and the Department of Justice testified about the problems with salvaged and flooded cars. Witnesses representing the National Independent Automobile Dealers Association, and Experian Automotive expressed their support for H.R. 1257.

In addition, the following support the bill: Alliance of Automobile Manufacturers, American International Automobile Dealers Association, Association of International Automobile Manufacturers, Automotive Service Association, Honda, Hyundai Motor America, National Automobile Dealers Association, National Association of Minority Automobile Dealers, Toyota Motor America, and Volkswagen of America, Inc. The next step for the bill is its consideration before the full Energy & Commerce Committee.