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New CARS program giving rise to scams


Beacon Journal staff report

A new federal program designed to help consumers buy more fuel-efficient vehicles is triggering new scams, Ohio Attorney General Richard Cordray is warning.

The program, known as the Car Allowance Rebate System (CARS), provides $3,500 or $4,500 credits to consumers who trade in less fuel-efficient cars or trucks that meet certain qualifications. CARS is scheduled to begin in late July.

''Scammers often try to piggyback on new programs or trends, and this is no exception,'' Cordray said. ''Impostors are telling consumers they need to preregister or provide their Social Security numbers to be part of the program. This is simply not true.''

While the program's official name is the Car Allowance Rebate System, unofficial ''Cash for Clunkers'' Web sites are popping up, falsely claiming that consumers need to register for the program. Some impostor sites ask for consumers' personal information including names, addresses and Social Security numbers. In some cases, the sites falsely promise that consumers will be put in touch with authorized dealers in their area.

According to the National Highway Traffic Safety Administration (NHTSA), consumers don't need to register or obtain a voucher to benefit from the program. Instead, dealers will apply a credit at the time of purchase. NHTSA also says the credit applies only to the purchase or lease of a new vehicle. All trade-in vehicles will be destroyed.

For more information on CARS, visit http://www.cars.gov or call the CARS information hotline at 866-CAR (227)-7891. To report a scam, contact Cordray's office at http://www.speakoutohio.gov or call 800-282-0515.


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