Two Portland area automobile dealerships agree to refund consumers for vehicle scrap value
Attorney General John Kroger today announced settlements with Toyota of Gladstone and Larry Miller Honda of Hillsboro that will pay 236 Oregon consumers a total of $43,571 for the scrap value of the vehicles they traded in under the federal Cash-for-Clunkers program.
In additional, Attorney General Kroger warned more than 200 other auto dealers in Oregon that they must comply with federal law and provide full scrap value refunds to consumers.
"Toyota of Gladstone and Larry Miller Honda of Hillsboro deserve credit for quickly agreeing to fix the problem when the Department of Justice brought it to their attention," said Attorney General Kroger. "The rest of the auto dealers in Oregon that accepted Cash-for-Clunker rebates need to obey the law as well."
An estimated 8,620 Oregonians participated in the federal Cash-for-Clunkers program, receiving $36.6 million in rebates for trading in fuel inefficient vehicles. Although a small number of Oregon consumers have already received the scrap value of their vehicles on top of the federal rebate, an initial investigation by the Oregon Department of Justice indicated that many Oregon consumers may not have received the full refund they were entitled to.
That investigation is continuing.
Under the federal Cash-for-Clunkers program, consumers received either a $3,500 or $4,500 credit for trading in a fuel inefficient vehicle. One additional feature of the program, which was not widely known, required dealers to return to consumers the full scrap value of the vehicle, although they were allowed to deduct a $50 processing fee.
When contacted, Toyota of Gladstone and Larry Miller Honda of Hillsboro readily agreed to fix the problem by swiftly refunding customers who had participated in the Cash-for-Clunkers program. Toyota of Gladstone paid 141 consumers an additional $20,020 in scrap value. Larry Miller Honda of Hillsboro paid 95 consumers an additional $23,550 in scrap value.
Consumers who think they may not have received the scrap value of the vehicles should call the Attorney General's Consumer Protection Hotline (877-877-9392) or file a complaint with the Financial Fraud/Consumer Protection Section of the Oregon Department of Justice.
Assistant Attorney General Eva Novick handled the case for the Oregon Department of Justice.
Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.
Tony Green, (503) 378-6002 firstname.lastname@example.org