WASHINGTON, D.C. -- The Cash for Clunkers program is law, and scammers are already taking advantage. Thieves are setting up fake websites that require you pre-register for the program and ask you lots of personal information. You don't have to pre-qualify or pre-register. The dealer will apply for the credit for you when you buy the new car and trade in your clunker.
Don't be confused, however, by the new name given to the program by the National Highway Traffic Safety Administration. That department is running the program, and giving it a new name. NHTSA's
website calls the program the "Car Allowance Rebate System." NHTSA expects to have all the rules and regulations figured out by July 23, 2009. You can keep track of the latest updates on NHTSA's website. You can also tell that the Cars website is the legitimate one for the program but the website. It ends with .gov.
NHTSA is responding to the reports of fraud. If you suspect a scam, call NHTSA at 1 888 327 4236. Please note, though, there will be a new number on July 1 and that is 1 8666 CAR 7891 for questions about the program.
You can also report fraud at the Office of the Inspector General at the U.S. Department of Transportation. You can email the department at
hotline@oig.dot.gov or call 1 800 424 9071. A third party contractor monitors the hotline 24 hours a day.
If a perpetrator of fraud is found, there may be a fine up to $15,000.
The program will give clunker drivers up to a $4500 voucher for a new car if it meets the requirements for fuel economy in a new car.
NHTSA is working on a system that will allow for electronic fund transfers to registered dealers to prevent further fraud.
When you trade-in a car, you will need to provide proof of ownership and proof that the vehicle has been continuously registered and insured to the same person during the last 12 months. It's also expected you'll have to show proof of who you are to prevent double dipping.
