LEGISLATION TACKLES PRACTICE OF SELLING DAMAGED CARS TO UNSUSPECTING CONSUMERS

Washington, Feb 13, 2007 - "In 2005, insurance companies declared some 5 million vehicles as 'totaled,' including more than 570,000 automobiles damaged by Hurricanes Katrina and Rita," said Rep. Cliff Stearns (R-FL). "Unscrupulous individuals make cosmetic repairs to totaled cars and sell them to unsuspecting consumers who have no knowledge of the damage. This practice of 'title washing' defrauds the buyer and puts unsafe cars on the public roads."

Stearns today re-introduced the Damaged Vehicle Information Act. Explained Stearns, "This legislation requires that the vehicle identification numbers (VINs) of totaled vehicles are immediately sent to vehicle history databases, available to the public, so that consumers are given more complete information regarding rebuilt wrecks, stolen, and flooded cars." None of this VIN-based data would include any personal identifiers protected by Federal and state privacy laws. And this is information that insurance companies already collect.

As Chairman of the Commerce, Trade & Consumer Protection Subcommittee last year, Stearns held a hearing on title washing. "The witnesses in that hearing outlined the need to strengthen titling procedures and to require providing title data to a national database empowering buyers, both consumers and dealers, with this information." Stearns offered the same legislation, H.R. 6093, in the 109th Congress. Sen. Trent Lott (R-MS) has offered this legislation in the Senate.