Rosemary Shahan, president of CARS, tells Today Show
about hazards of unsafe, recalled cars
about hazards of unsafe, recalled cars
Today Show Investigation:
Car dealers caught on camera
selling unsafe, recalled used cars
Car dealers caught on camera
selling unsafe, recalled used cars
March 7, 2013
The TODAY Show's Jeff Rossen, Josh Davis and their news team went undercover and found licensed auto dealers selling cars without bothering to get the safety recall repairs done first -- even though the repairs are FREE. First TODAY scoped out cars that are under a safety recall, for sale on car lots in the Midwest. Then they went on the lots and asked whether the cars were safe. So -- did the dealers told them the truth, without the cameras in sight? What do you think?
Watch what happens when dealers are asked if an unfixed, recalled car is safe --
Today Show: Rossen Reports: Hidden cameras reveal cars for sale with potentially deadly safety flaws
Unsafe recalled cars can kill you, or your family. Even if you don't buy one. If the steering goes and the driver of an unrepaired, recalled car loses control, you are at risk -- even if you just happen to be nearby. Or if the brakes fail and a recalled SUV crashes into a car that your child is riding in. Last year, over 32,000 people died in motor vehicle crashes. Vehicle crashes are the #1 killers of people under the age of 34. For most people, the riskiest thing they do on a regular basis is to drive a car, or ride in one. Our highways are already risky places. The last thing we need is for vehicles with known safety defects to be on the roads.
Today Show investigative reporter Jeff Rossen confronts
auto dealer caught selling recalled vehicle on his lot
auto dealer caught selling recalled vehicle on his lot
Polling shows overwhelming public support for ensuring that vehicles are safe and recall repairs are performed -- before vehicles are rented or sold.
CARS is spearheading efforts to get unsafe, recalled used cars fixed -- BEFORE people are hurt. Were you sold an unsafe, recalled car? We want to hear from you. Here's how to get in touch -- http://carconsumers.org/feedback.php
Where's the best place to check for safety recalls? Check out the manufacturer's website, call their toll-free number, or call a local dealer that sells the same make and model. The National Highway Traffic Safety Administration has also started a program to alert car owners by email about new safety recalls -- before you get a letter from the manufacturer. Here's where to register to get email notices from NHTSA, the nation's leading auto safety agency:
www-odi.nhtsa.dot.gov/subscriptions/index.cfm
In this Jan. 11, 2011 photo, a potential car buyer looks over used cars at a dealership in Sacramento, Calif. Rich Pedroncelli / AP
FTC: Let car buyers eat LEMONS!
NBC News
January 15, 2013
FTC's proposed used car rule a lemon,
critics claim
January 15, 2013
FTC's proposed used car rule a lemon,
critics claim
" 'The FTC really blew it," said Rosemary Shahan, founder and president of Consumers for Auto Reliability and Safety (CARS). "This industry has a real problem and the proposed rule changes do not address that.' [CARS comment: In fact, they would make things even worse for consumers.]
Shahan and other consumer advocates want the FTC to require more information on the Buyer's Guide that must be on every used vehicle offered for sale.
Consumer groups and law enforcement officials in many states demand more. They want the Used Car Rule to require dealers to disclose significant vehicle history information if they have it....In comments submitted to the FTC on behalf of the attorneys general in 40 states, the National Association of Attorneys General (NAAG) called the current Buyer's Guide 'archaic' and of 'limited value' to used car buyers.
'We think this a lost opportunity,' said NAAG's Bill Brauch. 'When it comes to a used vehicle, nothing is more important for a consumer to know than its history. Was it previously wrecked, flooded, or a lemon law buyback?'"
Read more: NBC News report
Cleveland Plain Dealer
Sheryl Harris, Consumer Reporter
December 11, 2012
"State attorneys general, including Ohio's, and groups like CARS had encouraged the FTC to expand the buyers guide to include information on whether the car was ever declared an insurance loss because of a flood or collision.That information is searchable through the National Motor Vehicle Title Information System, at vehiclehistory.gov. Rather than requiring dealers to check the system and include that information on the Buyers Guide, the FTC leaves that to consumers."Sheryl Harris, Consumer Reporter
December 11, 2012
Read more: Consumer Groups Say FTC's Used Car Rule a Lemon
South Coast Today
Beth Perdue
February 17, 2013
"A move by the Federal Trade Commission to modify its buyers' guide for used cars is being panned by consumer groups, who say the current guide is ineffective and proposed changes are even worse."Beth Perdue
February 17, 2013
Read more: Used Car Buyers Guide is no help in preventing fraud
ACT NOW!
Do you think that auto dealers should have to reveal -- in writing -- if they know that a car was totaled in a wreck, or was a flood car? Most people would say "of course." But not the Federal Trade Commission. If the FTC has its way, car dealers will NOT be required by the nation's premier consumer protection agency to tell you a single thing about the history or condition of the car -- even if the dealer KNOWS that it's worth thousands less than similar cars that weren't wrecked, or it's grossly unsafe.
CARS thinks that when you buy a car, you should not be the last to know what the dealer already knows about a car. After all, your life -- and the lives of your family, friends, and other passengers -- depends on your not getting stuck with an unsafe lemon.
Here's where to tell the FTC what you think -- please share this link with friends and post it on Twitter, Facebook, and other sites. All comments become part of the public record and can be accessed by others, including news media:
https://ftcpublic.commentworks.com/ftc/usedcarrulenprm
Superstorm Sandy will raise used-car prices nationwide
Victims of Hurricane Sandy.
Los Angeles Times
November 9, 2012
"The flood of Sandy-damaged cars further poses the risk that many will wind up in the hands of unscrupulous dealers peddling to unwitting consumers. The vehicles pose both financial and health risks.November 9, 2012
'Cars that have been submerged in saltwater, and contaminated by bacteria and various toxins, will soon start to appear all over the country, even in states far from the center of the storm,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety.
Shahan said there were cases of Nissan vehicles flooded by Hurricane Katrina auctioned as 'new' as far away as California after that storm.
She urged shoppers to look for signs of flood damage, including engines that hesitate or run roughly, musty interior smells or signs of silt residue or premature rust.
Buyers should also run the vehicle information number through the National Motor Vehicle Title Information System at vehiclehistory.gov. Insurers, salvage pools, auctions and junkyards in all 50 states are required to report all total-loss vehicles to this federal database within 30 days, Shahan said."
Read more: "Los Angeles Times: Superstorm Sandy will raise used-car prices nationwide"
Buyer Beware: Cars flooded by Hurricane
Could turn up on the market
A flood vehicle from the storm.
New York Times
November 2, 2012
"Many cars submerged by the floods caused by Hurricane Sandy could eventually turn up on the automotive market. Consumer advocates warn that buyers need to beware of vehicles that have suffered water damage, only to be dried out and marketed by sellers who conceal their histories. Nevertheless, new federal regulations could help protect car buyers.November 2, 2012
On Wednesday, Geico had already received 20,000 auto claims for flood and other damage from the East Coast, according to a statement issued by Tony Nicely, chairman of the company. State Farm said it had received 4,000 claims. Those numbers are expected to grow, and many of the cars are sitting in salty water, a particular threat to electrical systems and air bags.
In the past, consumer advocates and legislators worried that differences in state laws could allow a car described on its title, or "branded," as a flood vehicle in one state to emerge with a clean title in another state. Now, title-washing, as it is called, 'is much less of a problem,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety. Her group and other consumer advocates successfully sued the Justice Department in 2008, demanding that regulations be issued.
The result, Ms. Shahan said, is that vehiclehistory.gov tells consumers whether a vehicle has been totaled regardless of lax state titling laws or interstate sales....Ms. Shahan noted, however, that some states do not brand vehicles as flooded." (Note: it is still important to ALWAYS have any car you're considering inspected before you agree to buy, even if it doesn't show up in the vehicle history database.)"
Read more: "New York Times: cars flooded by Hurricane could turn up on market"
Tap Car Insurance After Hurricane Sandy
Tap into your insurance policy.
Fox Business News:
November 15, 2012
"...consumer advocates, including Rosemary Shahan, President of Consumers for Auto Reliability and Safety in Sacramento, Calif., say that once water gets in the car it becomes dangerous to your safety and health.November 15, 2012
"Today the engines, brakes and air bags are all controlled by computers. It's very unreliable, especially of there's saltwater," Shahan says. She says that not only will the car corrode, but the car's interior will be saturated by contaminated water, making it hard to clean up."
Read more: "Fox Business News: Tap Car Insurance After Hurricane Sandy"
Brian Ross reporting for Good Morning America.
ABC News
Good Morning America
Brian Ross, reporting from New York
September 28, 2012
Good Morning America
Brian Ross, reporting from New York
September 28, 2012
St. Louis Post-Dispatch
September 27, 2012
September 27, 2012
USA Today
September 27, 2012
September 27, 2012
Boxer, Feinstein Introduce Legislation to Ensure Safety of America's Rental Car Fleet
U.S. Senators Barbara Boxer (L) and Dianne Feinstein take the lead in championing rental car safety. (AP file photo)
Legislation Would End the Practice of Renting or Selling Vehicles Under Safety Recall
August 2, 2012
August 2, 2012
Washington, D.C. – U.S. Senators Barbara Boxer and Dianne Feinstein (both D-CA) today introduced the Raechel and Jacqueline Houck Safe Rental Car Act of 2012, legislation that will ensure the safety of America's rental car fleet by preventing rental car companies from renting or selling cars or trucks that are under safety recall.
The two California Senators introduced the legislation named in honor of Raechel and Jacqueline Houck, two sisters from Santa Cruz, ages 24 and 20, who were killed while driving a recalled Chrysler PT Cruiser they had rented from Enterprise in 2004. About a month before the deadly crash, Enterprise received a recall notice that the PT Cruiser had a defective power steering hose that was prone to catching fire and that it would be repaired by Chrysler free-of-charge. Despite the warning, Enterprise did not get the vehicle repaired and rented it out to three other customers before renting it to the Houck sisters. The defect caused the car to catch fire and crash head-on into a tractor-trailer, killing both sisters.
Their mother, Cally Houck, has joined with consumer groups in support of the new legislation, which would close a loophole in safety standards by requiring rental car companies to ground recalled vehicles as soon as they receive a safety recall notice and prohibit them from being rented or sold until they are fixed. Auto-dealers are already subject to these requirements and the bill would simply extend the same requirements to rental car companies.
"We cannot allow another family to go through the pain and loss that Cally and her family have gone through," Senator Boxer said. "We will not rest until Congress has passed legislation that protects American consumers from these unsafe vehicles, and we urge all the rental car companies to join Hertz in committing to the safety of their customers."
U.S. Senators Barbara Boxer (L) and Dianne Feinstein (photo from earlier event)
Earlier this year, Senator Boxer sent a letter asking the nation's four leading rental car companies – Enterprise, Hertz, Avis/Budget and Dollar/Thrifty – to protect consumers from unsafe vehicles by making the following pledge: "Effective immediately, our company is making a permanent commitment to not rent out or sell any vehicles under safety recall until the defect has been remedied."
Of the four companies – which together control 92 percent of the rental car market – only Hertz agreed to the pledge in its entirety. Senator Boxer is continuing to urge the companies to take the pledge and fully protect their customers.
The Senate bill is the companion legislation to a bill introduced last month by Congresswoman Lois Capps (D-CA), Congressman Eliot Engel (D-NY) and Congresswoman Jan Schakowsky (D-IL). The new House and Senate bills are an updated version of legislation introduced last year by Senator Chuck Schumer (D-NY), Senator Boxer, Senator Feinstein and Senator Richard Blumenthal (D-CT).
The new House and Senate legislation is supported by Hertz, Consumers for Auto Reliability and Safety, Advocates for Highway and Auto Safety, the Center for Auto Safety, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Consumer Advocates and the Trauma Foundation.
Would you "Like" Enterprise and other companies to stop renting unsafe vehicles?
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Dispute Over Renting Recalled Vehicles Reaches a Crescendo
Rental car companies at the airport.
Roll Call
By Janie Lorber and Kate Ackley
July 17, 2012
"Consumer safety advocates may be on the verge of winning a years-long fight to ban rental car companies from renting and selling recalled vehicles. By Janie Lorber and Kate Ackley
July 17, 2012
Enterprise Rent-A-Car publicly opposed such proposals, but with a new bipartisan bill in the House and a companion measure expected to drop any day in the Senate, other industry players are joining the fray....Enterprise, one of the largest privately held businesses in the nation, has spent more than $200,000 on lobbying so far this year. In 2011 the company spent nearly $1 million, almost four times the amount spent by its major competitors - Avis-Budget and Hertz Rent-a-Car - combined.
'Without legislation, what Enterprise is doing is not enforceable. They can say they are doing it, but not really be doing it," said Pamela Gilbert, a lobbyist with Cuneo Gilbert & LaDuca, representing CARS. "They can do it today and stop tomorrow. In both cases, without a law, there isn't anything anyone can do about it.' "
Would you "Like" Enterprise and other companies to stop renting unsafe vehicles?
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
More Consumers with Bad Credit Scoring Car Loans
Arm yourself with information to improve your chances for approval.
By Allie Johnson
CreditCards.com
July 23, 2012
Get a good deal, at any score:CreditCards.com
July 23, 2012
1. Know your score before you shop. Experts say it's not enough just to look at your credit report, which you can get for free from each of the major credit bureaus once a year at Annual Credit Report.com. You also should get your credit score, which can be purchased from the credit bureaus or on myFICO.com. (According to myFICO.com, you have three separate FICO scores, one for each of the major credit bureaus.) "Make sure you know your credit score and it's very recent so they can't say, 'Oh it used to be good, but now you have a ding and this is the best we can do,'" says Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS).
Read more: at Fox Business
Hertz, Enterprise at odds over changes to car-rental risks
Will all the rental companies ever agree to put consumers first?
Philadelphia Enquirer
June 25, 2012
by Jeff Gelles
"In hindsight, many of the vehicle crashes that kill more than 30,000 people a year in the United States seem utterly senseless — avoidable if a drunk had just stayed off the road, a distracted driver had let a text go unanswered, or a commercial driver had been better rested or less worried about the costs of delay.June 25, 2012
by Jeff Gelles
Even in that sad litany, the deaths of Jacqueline and Raechel Houck stand out: preventable by a simple fix in car-rental practices. Yet, after two years of crusading to get rental-car companies to change their ways, their bereaved mother, Carol "Cally" Houck, still hasn't quite succeeded."
Read more: at Philly.com
Would you "Like" Enterprise and other companies to stop renting unsafe vehicles?
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Cally Houck pushes rental car companies to stop leasing out unsafe, recalled cars
Cally Houck sits by pictures of her daughters.
Huffington Post
June 20, 2012
By Sharon Silke Carty
"Cally Houck wants rental car companies to promise they won't rent or sell a vehicle until any safety recall issue is addressed. So far, only one rental car company -- Hertz Rental -- has promised to permanently stop the practice. Other companies have said they are on board, but won't promise to never rent a recalled vehicle and not fixed.June 20, 2012
By Sharon Silke Carty
"It's so simple, so simple," Houck said. The rental companies "just don't want to be told what to do." Houck has found a ally in the Senate in Boxer, who is planning to introduce a bill similar to one proposed last year by Sen. Chuck Schumer.
On May 7, Boxer gave the major car rental companies 30 days to sign a pledge saying they would stop renting recalled vehicles. She announced last week that only Hertz made that commitment"
Read more: at The Huffington Post
Would you "Like" Enterprise and other companies to stop renting unsafe vehicles?
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
"Buy Here Pay Here" auto sales bill gaining ground
Buy Here, Pay Here lot in L.A.
Los Angeles Times
June 25, 2012
by Marc Lifsher
"Legislation to regulate the sale of high-mileage cars to credit-risky motorists breezed through a key committee of the state Assembly, despite growing opposition from so-called Buy Here Pay Here auto dealers. The bill by Sen. Ted Lieu (D-Torrance) would cap interest rates on loans provided by the sellers at just over 17%. Currently, unregulated interest rates can run as high as 30%, Lieu said.....June 25, 2012
by Marc Lifsher
But consumer groups complained that dealers in this fast-growing automobile market segment reap large profits by repossessing the same car as many as eight times. 'Part of the industry's basic design is for these loans to fail,' said Rosemary Shahan, executive director of Sacramento-based Consumers for Automobile Reliability and Safety, which supports the Lieu legislation."
Read more: at The L.A. Times
Would you "Like" Enterprise and other companies to stop renting unsafe vehicles?
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
Show your support by "Liking" this on Facebook, by clicking the "Like" button below. Thanks!
4 rules for getting a car loan
June 18, 2012
by Martha White
Shop Around
“Our number-one piece of advice for consumers is never, ever get your loan from the dealer,” Shahan says. It’s advice other consumer advocates echo.
“Get preapproved for financing before you set foot in the dealership,” says Chris Kukla, senior counsel for government affairs at the Center for Responsible Lending."
Read more: http://moneyland.time.com/2012/06/18/4-rules-for-getting-a-car-loan/#ixzz1yPWYunTd
CA legislation to curb "Buy Here Pay Here" auto sales scams faces stiff opposition from
auto dealers who sell overpriced, junky cars to vulnerable consumers
Read more: Los Angeles Times report, June 9, 2012
Three bills targeting buy here pay here dealers continues to advance.
June 1, 2012
Read more: Los Angeles Times June 1, 2012
Shady car dealers targeting military buyers
Car dealer rip-offs affect mission readiness
May 31, 2012
“Auto sales and financing scams are leading causes of financial readiness problems for military service members and their families,” she says.
Read more: lifeinc.today.msnbc.msn.com/_news/2012/05/31/11959202-shady-car-dealers-targeting-military-buyers
Money Magazine: Heroes
A yearlong celebration of 40 people who have made extraordinary efforts to improve others' financial well-being.
Rosemary Shahan, President and Founder of Consumers for Auto Reliability and Safety Why she's a hero: Shahan, 62, has spent three decades fighting on drivers' behalf for more effective repairs, improved safety, and fairer financing.
Read article: money.cnn.com/galleries/2012/pf/1205/gallery.consumers-customer-service.moneymag
Auto safety activist Rosemary Shahan turns lemons into legislation
April 1, 2012; by Ken Bensinger
Shahan, 62, championed the nation's first lemon law in California, which has since been copied in every state. She was a major force behind the federal air bag mandate and laws protecting military service members from abusive car loans. And she's not finished."
Read article: articles.latimes.com/2012/apr/01/business/la-fi-himi-shahan-20120401
Three bills to rein in buy here pay here dealers advance.
April 25, 2012
by Marc Lifsher
Read article: www.latimes.com/business/la-fi-buy-here-pay-here-20120425,0,6508765.story
Star-spangled rip-off
Why car buyers in the military are vulnerable to bad deals
posted 1/5/12
Read article: www.edmunds.com/car-buying/star-spangled-rip-off-why-military-car-buyers-are-vulnerable-to-bad-deals.html
Buy Here Pay Here auto dealers scam consumers
Sky-high interest rates, cars that break down soon after purchase, inflated prices, and little protection for car buyers.
Los Angeles Times report exposes the shady dealings of "Buy-Here-Pay-Here" dealerships.
Over a period of months, CARS contributed to this major three part series, which has garnered attention around the nation.
Sky-high interest rates, cars that break down soon after purchase, inflated prices, and little protection for car buyers.
Los Angeles Times report exposes the shady dealings of "Buy-Here-Pay-Here" dealerships.
Over a period of months, CARS contributed to this major three part series, which has garnered attention around the nation.
How auto dealers profit from "churning" used cars that break down soon after purchase and need expensive repairs the buyers can't afford
The Los Angeles Times
by Ken Bensinger
October 30, 2011
Read more: www.latimes.com: Buy Here Pay Here part 1
Exploiting the poor pays big dividends for fat cat lenders
The Los Angeles Times
by Ken Bensinger
November 1, 2011
Read more: www.latimes.com: Buy Here Pay Here part 2
Non-profit programs help struggling families get better jobs, improve their education, and transform their lives
The Los Angeles Times
by Ken Bensinger
November 3, 2011
Read more: www.latimes.com: Buy Here Pay Here part 3
California Passes First-in-Nation Protections for Car Buyers
Sept. 6, 2011
The bill implements a first in the nation requirement that car dealers post a red [warning} sticker on the used cars they sell that are flagged in a federally mandated database – the National Motor Vehicle Title Information System – as "junk," "salvage," or "flood" branded vehicles.
Read more: http://www.vannuysnewspress.com/news/2011/09/06/legislature-passes-first-in-nation-protections-for-car-buyers/
CARS spearheaded the successful effort to include the warning sticker provisions in the bill. Law enforcement agencies and officials joined in supporting the measure, after the pro-consumer changes were made. California Governor Jerry Brown has signed the bill into law. It is scheduled to kick in, beginning on July 1, 2012. Meanwhile, consumers can check the NMVTIS database directly, by
clicking on: http://www.vehiclehistory.gov.
Wreck Repairs
Can you trust your insurer to tell you where to go for repairs, after a wreck? Not necessarily.
Can you trust your insurer to tell you where to go for repairs, after a wreck? Not necessarily.
September 2, 2011
Watch report: http://abclocal.go.com/kgo/story?section=news/7_on_your_side&id=8340728
Note: If you live in Boston, Chicago, Delaware Valley, Puget Sound, San Francisco/Oakland/San Jose, Twin Cities, or Washington, DC, CARS recommends that you subscribe to Checkbook Magazine, an excellent resource for ratings of auto repair shops and other services.
Another excellent resource available nationwide that rates auto repair shops: Car Talk's Mechanics Files, at http://www.cartalk.com/content/mechx
Bill requires sticker warning of damaged vehicles
August 30, 2011
Read report: http://www.fresnobee.com/2011/08/30/2517868/bill-requires-sticker-warning.html
Opinion: A leap forward for cars, consumers and California
August 18, 2011
Read op-ed: http://www.capitolweekly.net/article.php?1=1&_c=zypw7anopulvoy&xid=zxggynmj2gpy77&done=.zxgse210bxydcm&_credir=1314916352&_c=zypw7anopulvoy
California Bill Targets Rental Car Defects
April 22, 2011
The National Highway Traffic Safety Administration has countered that "all safety recalls resulting from defects present an unreasonable risk to safety." NHTSA took its stand after several car-rental companies conceded that they still rent out recall-notice vehicles if the reported problem is not deemed serious [by the rental car company]."
Read more: http://www.sacbee.com/2011/04/22/3571171/california-bill-targets-rental.html
Faced with Recalls, Some Rental Car Companies Decide to Wait
April 19, 2011
Read more: http://wheels.blogs.nytimes.com/2011/04/19/faced-with-recalls-rental-companies-sometimes-decide-to-wait
California lawmaker introduces bill to stop rental car companies from playing "rental car roulette" with their customers' lives
Channel 13:
"A California mother made an emotional plea at the State Capitol after losing her two daughters to a horrific crash blamed on a recalled vehicle. Cally Houck lost her two daughters, 24-year-old Raechel and 20-year-old Jacqueline near Kings City in Central California in 2004. They lost control of the Chrysler PT Cruiser they had rented."
See report: Call Kurtis: Rental Car Recall
Channel 7:
New California bill targets rental car companies
"Consumer groups are applauding a bill introduced in Sacramento that would stop car rental companies from renting out vehicles that are facing a safety recall."
See report: New Calif. bill targets rental car companies
Channel 3:
Bill to require safer rental cars announced
Consumer groups applauded a bill Wednesday that would prevent rental car companies from renting any vehicle facing a safety recall... Also attending was Carol Houck, whose two daughters were killed in 2004 in a crash while driving a PT Cruiser. That vehicle, which they rented from Enterprise, had been under a federal recall order due to a steering problem.
"Had this bill been in place in 2004, my daughters would be here," said Houck.
See report: Bill To Require Safer Rental Cars Announced
by Jondi Gumz
Assemblyman Monning to introduce rental car safety bill
SANTA CRUZ - Rental cars recalled for safety reasons would be grounded until repairs are made if a bill proposed by Assemblyman Bill Monning, D-Carmel, becomes law.
Monning said a "loophole" in federal law allows rental car companies to rent out vehicles that are under recall while new car dealers are prohibited from selling new cars under recall until they are repaired.
He is expected to introduce AB 753 this morning at a news conference in Sacramento.
He said the measure was prompted by the death of two Santa Cruz residents, Raechel Houck, 24, and her sister, Jacqueline, 20, in a fiery crash in 2004 while driving a PT Cruiser rented from Enterprise Rent-A-Car. The car had been recalled for a defective power steering hose prone to catch fire, but it hadn't been repaired.
See report: http://www.santacruzsentinel.com/ci_17676460
Aug. 9, 2010
By Jondi Gumz
Advocates urge FTC to stop defective car rentals at Enterprise that killed Santa Cruz sisters
"Two auto safety advocacy groups petitioned the Federal Trade Commission Monday to prevent the nation's largest rental car company from renting out recalled but unrepaired vehicles to customers."
Read more: http://www.mercurynews.com/breaking-news/ci_15721653
All Things Considered
July 21, 2010
By Scott Horsley
New Law Protects Consumers from Non-Bank Lenders
HORSLEY: The new law represents the biggest change to financial rules in decades. But it largely exempts one group of lenders: Car dealers fought to be saved from the new bureau, and they won.
Ms. ROSEMARY SHAHAN (President, Consumers for Auto Reliability and Safety): It's a huge loophole because auto lending is second only to home mortgages and bigger than credit cards.
HORSLEY: Rosemary Shahan heads a California-based consumer group that specializes in cars and car loans. She says some of the risky lending practices that plagued the subprime mortgage industry can also be found on the nation's car lots.
Ms. SHAHAN: In fact, there are some folks that will tell you that those practices started with auto and spread to home mortgages: The falsified loan applications, getting people into loans they couldn't afford, securitizing everything and spreading the risks throughout the financial system.
HORSLEY: Car dealers aren't entirely off the hook. The new law gives the Federal Trade Commission additional power to crack down on dealers if it finds unfair practices.
Read more: http://www.npr.mobi/templates/transcript/transcript.php?storyId=128672529
July 11, 2010
by Earl Swift
"Red, White, and Scammed: how the U.S. Army's Diann Traina and other young military personnel are getting
ripped off -- and what's being done to help them"
"So pervasive are the rip-offs -- and so troubling the debt incurred by military personnel as a result--that U.S. Department of Defense officials recently labeled the situation a threat to national security....
'There are a lot of people who see service members as cash cows,' says Holly Petreaus, director of the military program of the Better Business Bureau (BBB) and wife of Army Gen. David Petreaus, whom President Obama recently named to serve as commander of U.S. and NATO forces in Afghanistan. 'Go to any city with a big military installation, and there's a cluster outside the gates -- Fast Freddy's auto loans, pawn shops, check cashers.'
Perhaps the most obnoxious offenders are those who pose as all-American boosters. 'They put up big flags and say, "Welcome, sailors; welcome, soldiers," says Rosemary Shahan, president of the Consumers for Auto Reliability and Safety, a nonprofit auto-industry consumer watchdog based in Sacramento. 'But the bigger the flag, the worse their practices.'"
Read more: http://www.parade.com/news/2010/07/11-red-white-and-scammed.html
June 11, 2010
By Paul Wiseman
Auto dealers could see new financial regulations
"'Don't let the manager ... keep you from being able to read the documents, telling you just to
"sign here," ' says Rosemary Shahan, president of Consumers for Auto Reliability and Safety in
Sacramento. 'Take the filled-out forms and go sit down and ... pore over them. You may find that you
negotiated a good deal verbally, but what is in writing could be very different. ... If they switched the
terms on you, walk away.'"
Read more: http://www.usatoday.com/money/autos/2010-06-11-financialreg11_ST_N.htm
How to avoid hidden traps in dealer-financed auto loans
June 11, 2010
"As Congress debates whether dealer-assisted financing should be regulated by a new consumer
financial protection agency, there’s still much you as a prospective car buyer can do to protect yourself
against predatory dealer practices.
Rosemary Shahan, president of California-based Consumers for Auto Reliability and Safety
(CARS), advocates avoiding dealer-arranged financing entirely."
Financial Watchdog: More disclosures, fewer hidden fees
May 18, 2010
By Jennifer Liberto
"'Yo-yo loans are illegal but nobody's policing it,' said Rosemary Shahan, president of
Consumers for Auto Reliability and Safety. 'It's up to state officials, but ask your state attorney general
how many times he's brought a case against an auto dealer.'"
This report was also printed in Stars and Stripes
May 14, 2010
By Janet Hook and Jim Puzzanghera
Financial reform pits car dealers against military
"'It's a fact that military personnel love their cars,'" Holly Petreaus said in a conference call with
reporters this week. 'Sadly, many of them end up paying far more for them than they should.' "
Consumer advocates also oppose the auto dealer exemption. Rosemary Shahan, president of
Consumers for Auto Reliability and Safety, a Sacramento, Calif., nonprofit advocacy group, said auto
dealers pack financing contracts with costly items such as extended warranties and insurance to cover
loan payments if the vehicle is wrecked. 'Even very sophisticated consumers get ripped off,' she said."
Read more:
http://www.stripes.com/news/financial-reform-pits-car-dealers-against-military-1.102677
May 12, 2010
by Gary Rivlin
More Special "Loopholes"? The Pentagon Versus the Car Dealers
"'The Obama administration gets it,' Shahan said. 'They know you can't regulate auto lending
without regulating the dealers. The dealers control the flow of money and the terms.' To Shahan's way
of thinking, the Pentagon gets it as well. That's what makes this so potentially interesting a political
fight. The Department of Defense has thrown its considerable heft behind those insisting that
automobile purchases and dealer-assisted financing need to be part of any comprehensive financial
reform package.
'What the car dealers do the military is disgraceful,' Shahan said.
Talking with Shahan means learning a whole new vocabulary. In the New York Times, I wrote
about a soldier at Fort Hood who fell victim to what consumer advocates call the 'yo-yo deal.'"
Read more:
http://www.huffingtonpost.com/gary-rivlin/the-pentagon-versus-the-c_b_574406.html
May 12, 2010
A Proposal to End Shady Car Dealers
By Gary Rivlin
"Even the Pentagon has weighed in, insisting that automobile purchases and dealer-assisted
financing should be part of any new financial legislation because low-income military people are
victimized in large numbers by shady car dealers that set up shop just outside many bases.
Officials say distractions caused by these bad auto deals could affect the readiness of the armed
forces...
For Matthew Garcia, a 25-year-old Army specialist stationed at Fort Hood in Texas, a car deal
gone sour has been “one more giant thing to worry about” as he prepares for a deployment to
Afghanistan as early as June.
Consumer advocates call it the “yo-yo deal.” In September, Mr. Garcia found a 2005 Dodge
Neon he liked at a used car lot near the barbershops, tattoo parlors and check cashing stores that
invariably line the main roads just outside any military base.
He agreed to a deal in which he would pay 19.9 percent interest on a $12,000 loan and signed
what he believed was a binding contract. He drove off. But several days later the salesman summoned
him back to the lot, Mr. Garcia said, to tell him the financing had fallen through.
He had signed only a conditional contract, he was told. If he wanted to keep the car, he would
need to put up an additional $2,500 in cash. Mr. Garcia refused, but by that time someone had blocked
his car so he could not leave. He said the dealership would not return his $1,500 down payment."
(Note: CARS contributed to this report, included putting the reporter in touch with Sgt. Garcia.)
Read more: http://www.nytimes.com/2010/05/12/business/12dealers.html
Auto dealers fight regulatory reform bill
May 10, 2010
by Michael Riley
"But auto dealers are among the biggest originators of consumer credit in America, and the
exemption would blast a hole in the idea that sweeping regulatory reform should include some of the
most basic instruments connecting consumers to global finance — credit cards, auto loans and home
mortgages among them.
'Their practices have gone from bad to worse in these harsh economic times,' said Rosemary
Shahan, president of Consumers for Auto Reliability and Safety.
'They're telling you they're getting you the best possible rate, which is a joke. This is how they
make most of the money these days, through the financing,' Shahan said of new- and used-car
dealerships.
The Center for Responsible Lending recently issued a report calculating that the additional loan
markup by new- and used-car dealers cost consumers $20 billion in 2007 — and cost $318 million to
consumers in Colorado alone.
A new consumer regulator could require auto dealers to disclose the size of the markup or limit
it to a set fee. 'They tell you this loan is the best you can do,' said Shahan. 'It's not.' "
Read more: http://online.indianagazette.com/articles/2010/05/10/news/doc4be8d500934a1724074057.txt
Delaware News Journal
May 30, 2010
By Jonathan Starkey
"'You can't police auto lending without policing car dealers who are the ones that negotiate the
terms of the loan,' said Rosemary Shahan, president of Consumers for Auto Reliability and
Safety. 'They have tremendous power in that transaction.'"
December 9, 2009
By John Ydstie
Bill Exempts Auto Dealers from Agency Oversight
"But consumer advocates argue that the dealer's role in financing vehicles is about as passive as
a truck ad. 'Auto dealers are very active players,' says Rosemary Shahan, a consumer advocate and
longtime auto industry critic. 'They have a huge influence over the kind of loan that most people get
when they buy a car.'
In about 80 percent of auto sales, car dealers are not lending their own money; they're arranging
loans for their customers with banks or finance companies. But the deals bring in huge profits for
dealers, Shahan says, and there are a lot of ways for them to make money in the process.
'You fill out a credit application, and a dealer submits it to a lender. And what they're not telling
you is they get a kickback in exchange for raising the interest rate on your loan,' she says."
Read more: http://www.npr.org/templates/story/story.php?storyId=121224829
