Released: February 06, 2008
Consumer Action joins auto-fraud database lawsuit
Suit cites unreasonable delays by Feds to establish public database
Contact: .(JavaScript must be enabled to view this email address) (202) 544-3088; .(JavaScript must be enabled to view this email address), CARS (530) 759-9440; .(JavaScript must be enabled to view this email address) (202) 588-7741
Consumer Action and Consumers for Auto Reliability and Safety (CARS) have joined a lawsuit brought by Public Citizen against the U.S. Department of Justice (DOJ) over its failure to implement the National Motor Vehicle Title Information System (NMVTIS). In 1992, Congress sought to curb auto fraud by requiring a single, federal database that would provide the public with access to information gathered from states, salvage yards and insurance companies. Before purchasing a potentially dangerous used car, a consumer would be able to check the validity of a car's title and mileage and learn whether it had been stolen or branded as a junk or salvage vehicle. Sixteen years later, consumers still do not have access to this critical safety information. Citing unreasonable delay, the groups are taking legal action to force the federal government to comply with the law. The organizations charge that because of government delays, consumers nationwide are being victimized by salvage fraud. If the NMVTIS existed, these individuals would be able to check the status of their vehicles to avoid financial loss and physical harm.Purpose of suit
The lawsuit is being brought to spur the DOJ to issue long-overdue rules to require insurers and junkyards to provide data regarding totaled vehicles to NMVTIS. The data will be focused on the vehicles and their condition, and will not include any personal information. What statute requires the DOJ to issue the rules? The Anti-Car Theft Act of 1996, authored by Senator Chuck Schumer. The original statute, the The Anti-Car Theft Act of 1992, required the US Department of Transportation (DOT) to establish the database. However, for 4 years, the DOT failed to act, and in 1996 Congress shifted authority over NMVTIS from the DOT to the DOJ, which has made significant progress. What does the Anti-Car Theft Act of 1996 require the DOT to do? Establish NMVTIS. Issue rules to require insurers and junkyards to provide data on totaled vehicles. Why is a lawsuit necessary?- To protect American motorists and their families from unsafe rebuilt wrecks and flood cars, and to curb auto theft and related crimes.
- A study commissioned by the DOJ found that full implementation of NMVTIS would save the public between $4 billion and $11.3 billion each year. NMVTIS cannot be fully implemented until insurers and junkyards provide the data on totaled vehicles.
- Twelve years after Congress mandated that the DOJ issue the rules, the DOJ still has not issued them. Last year, the DOJ predicted it would have the rules ready to submit to the Office of Management and Budget by the end of summer. Now, however, the agency indicates it may take until next spring before they are ready to submit to the OMB.