C.A.R.S. in the News

 
"Nat Pope has spent much of his academic career studying extended car warranties, such as those seen on television and pushed in robocalls promising to pay for costly repairs. But here's what he still doesn't know: Who can help if there's a problem with the warranty?

'I wouldn't even know where I would really expect to get some satisfaction,' said Dr. Pope, an associate professor of risk management and insurance at the University of North Texas. 'The regulation is fragmented. There is nothing national. Regulators have other fish to fry.'

That's a problem because such contracts — properly called vehicle service contracts — are 'fraught with peril for consumers, especially economically vulnerable people who can't afford to have their car break down,' said Rosemary Shahan, the president of Consumers for Auto Reliability and Safety.

'Many consumers are complaining of high pressure, misrepresentations, contracts not being fulfilled, refunds not provided and overall just poor customer service,' said Michelle L. Corey, the president of the Better Business Bureau of Greater St. Louis. Ms. Corey said the B.B.B. seemed to receive fewer complaints about policies sold by dealers and automakers....

While business is increasing, so are complaints, according to the B.B.B. In 2019, the Better Business Bureau in the United States and Canada got about 6,700 complaints about companies offering service contracts. Last year, that increased 21 percent to almost 8,200.

That may not seem like a large number nationwide, but a small number of complaints is not necessarily a gauge of consumer satisfaction, said Amy J. Schmitz, a law professor at the University of Missouri, where she specializes in consumer protection. A 2004 survey by the Federal Trade Commission found that only about 8 percent of unhappy consumers filed complaints with state or federal officials.

Read more: New York Times: "Extended Warranties for Cars Are 'Fraught with Peril for Consumers'"
 

"WASHINGTON (SBG) — New calls for action on an issue Spotlight on America has been investigating for years, now going directly to the White House. More than a dozen organizations are urging President Biden to stop the federal government from continuing a dangerous practice: the use and sale of recalled cars that haven't been fixed. Their letter cites a Spotlight on America investigation that found more than 25,000 recalled cars in the government fleet.

It's a major development in the effort to fix a system that puts tens of thousands of federal workers across the nation, and all of us on the road, at risk. A letter sent to President Joe Biden, signed by 16 consumer advocacy groups and watchdogs, urges him to direct all departments and agencies to end the "unsafe practice of federal employees using unrepaired recalled vehicles." It also calls for a ban on the sale of those cars to the public when the government is done with them....

That letter cites, and links to Spotlight on America's comprehensive investigation into recalled cars in the government fleet, which found at least 25,000 vehicles with potentially dangerous, unfixed problems....

The dangerous and potentially deadly problems we found in the federal fleet included everything from defective airbags to flaws that could stall engines and issues that could spark engine fires."

Read more / watch video: WCTI 13 Spotlight on America: Leaders ask White House to stop use / sale of recalled cars
 

"If you're browsing online for used cars, you might come across one that's going for a really low price. The car looks perfect in all the photos, and it only has a few thousand miles. So, what's the catch?

When you look closer, you might notice that it's listed as a rebuilt or salvage title car.

Vehicles with rebuilt or salvage titles initially cost much less than vehicles with clean titles, but it's essential to understand all the risks associated with them before buying one....

Regardless of how a car earned its salvage title, the conclusion is the same: salvaged cars aren't safe for use on the road.

'They tend to be really unsafe. A lot of times the airbags have been inflated and may have not been replaced because it's expensive to replace airbags,' says Rosemary Shahan, the founder and president of Consumers for Auto Reliability and Safety, a nonprofit advocacy group....

But a rebuilt car isn't necessarily any safer than a salvaged car, according to Shahan. 'It just means that the state allows them to indicate that somebody rebuilt this, but there's not a lot of standards for how well they rebuilt it or if it's really an adequate repair,' says Shahan."

Read more: NextAdvisor (In partnership with TIME): Buying a Salvage or Rebuilt Title Car is Almost Never a Good Idea. Here's Why
 

"There are many ways to save on car insurance. Purchasing the right type of car is one of the most important....

If you're looking to save on car insurance, safe and practical wins over flashy and fast just about every time. For example, research suggests that minivans are, on average, the least expensive cars to insure when compared to other vehicles. There are many reasons behind that; larger, heavier vehicles generally afford more protection than smaller, lighter ones, according to the Insurance Institute for Highway Safety (IIHS).

'The kind of car you buy has a really significant impact on what you pay for car insurance,' says Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a consumer advocacy group. More costly claims for a particular type of car means a higher insurance rate....

'If you buy a high-end car that's really costly to repair, that can drive part of your insurance costs up significantly,' says Shahan."

Read more: NextAdvisor (In partnership with TIME): "5 Tips for Choosing a Cheaper Car to Insure"
 

 
The President of CARS was interviewed numerous times over a period of months for this Checkbook Magazine report "On the Road Again, Despite Dangerous Defects," contributing expertise and contacts for each of the consumers whose stories are featured, who were victimized by auto dealers who sold them dangerous unrepaired recalled used vehicles.

IMPORTANT CORRECTION: This report says that there is no law against dealers selling unrepaired recalled used vehicles. However, that is WRONG. Federal law prohibits car dealers from selling unrepaired recalled NEW vehicles. Federal law does not prohibit car dealers from selling unrepaired recalled USED vehicles, except if they are owned by a rental car company with a fleet of 35 or more vehicles. But various state laws do exist to protect used car buyers from dealers who rip them off or place their lives at risk. Even the car dealers' own attorneys and some state auto dealer trade associations caution dealers against selling used vehicles without getting the free safety recall repairs done first, warning the dealers that they face serious liability under state laws, especially if people are injured or killed as a result.

If a car dealer sold you an unrepaired recalled car, whether it was new or used, you may be able to get justice, if you are willing to fight back. Some consumers have received confidential settlements from dealers who sold them hazardous recalled used vehicles. To find out about your rights under the laws in your state, contact an attorney who specializes in auto fraud and warranty law, who is licensed to give legal advice. A good resource for finding an attorney who can advise you: The National Association of Consumer Advocates.
 
   
"Lisa Shelton of Hidden Valley Lake, Calif., fell in love with the black 2005 Infiniti FX35 on a used-car lot in June 2019. She purchased it for about $7,000, but she had no idea the SUV was one of more than 400,000 vehicles recalled by Nissan in May 2016. The problem: A passenger-side Takata airbag that could eject metal fragments during an accident, injuring her, her family, or others. And she didn't know that the potentially deadly airbag - never replaced by previous owners - remained installed in her car....

'I'm sick to my stomach,' said Shelton, who unknowingly put her daughters, husband, and self at risk while driving the car. She even taught her 17-year-old to drive in the Infiniti. 'I was completely blown away. I had no clue that was something I had to worry about.'

Colin Welsh, Shelton's attorney, said he doesn't know whether the dealer was aware of the outstanding recall, but that it had a responsibility to check before selling it. 'I think it's irresponsible and negligent for any dealer to sell a vehicle with an open recall.'

Think this is an unusual case? It's not.

Between 2010 and 2018, automakers in the U.S. recalled 238 million cars and light trucks due to unsafe defects. Manufacturers issue recalls for dangerous problems: Brakes that can fail, engines that can catch fire, airbags that injure or kill, doors that might fling open unexpectedly.

But according to the National Highway Traffic Safety Administration (NHTSA), about one-fourth of recalled rides go unrepaired. Many end up on used-car lots where they're often resold by dealers that haven't addressed the recalls or informed buyers about them.

Checkbook and other consumer advocates say it's long overdue for this to change, and for state and federal agencies and lawmakers to take action to protect motorists, passengers, and the public.....

'Name another product that the retailer thinks it can sell you when it's under a recall,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety. 'Dealers are in the business of selling cars, and they should make them safe. It's a threat to everybody.' The car industry downplays the dangers of some recalls, but Jason Levine, executive director of the Center for Auto Safety, says every recall should be taken seriously. 'There are only two reasons why a vehicle is recalled: A safety defect, or it's violating a safety standard,' he said.

Many people have been killed or injured or had their property damaged after buying vehicles with open recalls. Many of the used vehicles we found on CarMax's website were promoted as "CarMax certified" after undergoing "an extensive reconditioning process to meet our high standards."

Apparently, CarMax's "high standards" allow "certification" of vehicles that, based on the open recalls we found, might catch fire, stall while traveling at high speed, or have airbags and seatbelts that might not properly deploy during an accident.

'The FTC violated its own mandate to protect the public by allowing false advertising for the safety of these vehicles,' said Shahan. She and other advocates said the FTC and states should use their existing laws to stop at least some of these sales (for example, disallowing ownership transfers of vehicles that don't meet federal safety standards due to unaddressed recalled defects).


Read more: Checkbook Magazine: "On the Road Again, Despite Dangerous Defects"
 

"A bill that would provide California motorists with easy and affordable access to electric vehicles will be considered by the Senate on Saturday.

Assembly Bill 326 creates a legal framework for automakers, commercial truck manufacturers and rental car companies to offer month-to-month electric vehicle memberships as an alternative to the more expensive option of buying, leasing or renting.

A broader range of EV drivers

Authored by Assembly members Al Muratsuchi, D-Torrance, and Ben Allen, D-Santa Monica, the measure is designed to make EVs available to a broad range of Californians, including people from low-income and disadvantaged communities.
   
Muratsuchi’s office estimates month-to-month memberships could start at around a couple hundred dollars a month.

The memberships would also help the state meet its goal of having 5 million zero-emissions vehicles on the road by 2030. Mass adoption of electric vehicles will be slow to happen as long as EVs continue to be more expensive than combustion-engine vehicles.

Rosemary Shahan, president of Sacramento-based Consumers for Auto Reliability and Safety, said her organization is firmly behind AB 326.

'I’ve helped consumers for decades who bought or leased cars from dealers and got ripped off,' she said. 'From price gouging to the way the financing is done, there’s a whole list of problems. But consumers won’t have to worry about that with this business model. They won’t have to buy the car or go way into debt.' "

Read more: Orange County Register: Bill Would Create Month-to-Month Electric Vehicle Memberships
 

"The National Highway Traffic Safety Administration, the federal agency that oversees vehicle recalls, released a new smartphone app that will notify owners of recalls on cars, trucks, RVs, motorcycles, tires, child car seats, and even certain vehicle components. Called SaferCar, the app is available for Android and iOS phones, and it may alert car owners to important safety recalls long before traditional mailed notices can reach them....

[Auto manufacturers are] required by law to send recall notices via first-class mail. But safety advocates fear that letters might not be adequate when it comes to alerting car owners of potentially deadly defects—especially as more Americans move and change addresses during the coronavirus pandemic and the U.S. Postal Service struggles with delays.

'It’s good to have some redundancy built into the system so you don’t have to depend on first-class mail,' says Rosemary Shahan, president and founder of Consumers for Auto Reliability and Safety, an automotive safety advocacy group. 'There should be multiple ways that they reach out, because a lot of people never get the notices.' "

Read more: Consumer Reports: NHTSA's SaferCar App Aims to Stop Deadly Recall Notification Delays
 

"Consumer and environmental organizations are joining forces with electric vehicle manufacturers to support urgently needed legislation to allow California consumers to access zero-emission electric vehicles through innovative, affordable, short-term, renewable memberships.

Assemblymember Al Muratsuchi, Democrat from Torrence, and Sen. Ben Allen, Democrat from Santa Monica, are championing Assembly Bill 326, which would establish a framework for “Electric Vehicle Memberships” and provide easy access to EVs by allowing manufacturers to offer short-term memberships to consumers. The memberships will include registration, maintenance, charging and an insurance option, and provide a more affordable alternative to buying, leasing, or renting an electric vehicle – with no long-term financial commitment.
   
This legislation will also help overcome the car dealers’ near-total monopoly on sales of new vehicles – with the sole exception of Tesla – and provide California consumers, businesses and government agencies greater freedom of choice for accessing zero-emissions vehicles while also helping to ensure that this new, innovative EV membership model is regulated appropriately....

Americans now carry more than $1.2 trillion in auto loan debt, an increase of over 75% since 2009. AB 326 opens up opportunities for more lower-income and disadvantaged consumers to break free from high-interest auto loans that are too often predatory or discriminatory, based on race.

In a recent nationwide study conducted by Volvo Car and The Harris Poll, consumers cited the upfront cost of EVs as a leading barrier to entry. AB 326 helps remove that barrier by making it more affordable for more Californians to drive EVs through a month-to-month membership without expensive long-term loans or leases."

Read more: CALMatters: A Plan to Expand Access to Electric Vehicles

Also: Coalition of Pro-Environment, Pro-Consumer, Pro-Economic Justice, Pro-Jobs Organizations and Businesses Urge Legislators to Vote YES for AB 326
 

"Army Maj. Edward Kim has braved mortars, rockets and ambushes from insurgents on some of the bloodiest battlefields of Iraq and Afghanistan.

Now safely back on U.S. soil, Kim is fighting a different kind of war in a staid Los Angeles County courtroom. His enemy is Norm Reeves Honda Superstore in Cerritos, a massive auto dealership that, according to the federal government, has a history of deceptive advertising practices.

At the heart of competing lawsuits between Norm Reeves and Kim is a dispute over a paltry $1 error in a purchase contract for a new car.

'The experiences I had in Iraq, Afghanistan and my service in the Army have made me more determined to defend myself against Norm Reeves Honda’s deceptive practices,' Kim, 41, of Anaheim wrote in an email. 'Their actions are no different than the insurgents who bullied the Iraqi and Afghan people during my deployments. What I experienced with Norm Reeves Honda is not an isolated incident and I am confident it has happened to many other unsuspecting customers over the years.'....

Kim, who said he has excellent credit, began checking out prices online and quickly came across Norm Reeves Honda, which bills itself as the 'No. 1 Honda Dealer in the World.'

....

'The process went smoothly until until we hit financing, which took forever,' said Kim, who was prepared to settle the balance for the cars with his first loan payment. 'The financing alone took about two hours to complete.'

Relieved to have the deal finalized, Kim was excited to surprise his mom and sister with new cars. However, just two days after Kim gave his mother the keys to her vehicle, he received a phone call that changed everything.

The finance representative for Norm Reeves called to notify Kim that American Honda Finance had denied his financing of the CR-V because the purchase amount on the contract was off by a dollar — purportedly due to a clerical error by the dealership — raising the price from $27,824 to $27,825....

Predatory lending and the military

Kim seems to be embroiled in a particularly aggressive 'yo-yo”'financing scam sometimes used by dealerships to target those in the military, said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a watchdog organization based in Sacramento.

'It’s unusual (for a dealership) to actually sue and intimidate a consumer,' Shahan said.

A yo-yo scam occurs when a car buyer who finances a vehicle through a dealership believes the financing is final or as good as final, according to the Federal Trade Commission. The dealer then lures the consumer back to the dealership, claims the financing is not final, and pressures the consumer to sign a new financing contract with a higher interest rate or other less favorable terms.

Those with poor credit scores are prime targets for the scam."

Read more: Southern California News Group -- Whittier Daily News, Orange County Register, Riverside Press Enterprise: $1 dispute over car purchase sparks 2-year legal battle between auto dealership, Army soldier
 

Consumers for Auto Reliability and Safety is working for enactment of potentially lifesaving auto safety legislation in Congress. The pro-safety bills are championed by Senators Ed Markey (D-MA) and Richard Blumenthal (D-CT). If they are enacted, they will improve compliance with auto safety recalls, enhance reporting of serious defects, prevent distracted driving, and help stop deaths and injuries due to collapsing seat backs that kill babies, toddlers, and other children riding in the back seat -- even when they are buckled into child safety seats.

 
"In 2019, an estimated 38,000 people lost their lives in car crashes, while over 4 million people were seriously injured," said Senator Markey. "These numbers repeat year after year and reveal a public health crisis that we must not accept as inevitable. We can prevent these unnecessary tragedies with proven strategies and technologies. That's why I am proud to introduce a robust legislative package that will address several of the most dangerous safety issues on our roads. As Congress debates infrastructure and surface transportation reauthorization, I will fight for these bills and ensure that safety is at the forefront of everything we do."

"Despite decades of auto safety advancements, it is still true that one of the most dangerous things you can do is get in a car," said Senator Blumenthal. "Senator Markey and I have partnered on a comprehensive package of legislation that will put safety back in the driver's seat - addressing dangerous auto recalls, defect investigations, distracted driving, and seat back standards. Any discussion of transportation programs must include steps to protect the lives of drivers and passengers, and these proposals are the right place to start.

The first bill – the Promoting Auto Recalls Toward Safety (PARTS) Act – increases the speed and effectiveness of motor vehicle recalls in the wake of lessons learned from the infamous Takata recall. The PARTS Act will specifically authorize the U.S. Department of Transportation (DOT) to provide grants to states for use in notifying registered motor vehicle owners about manufacturer-issued safety recalls, as well as require additional reporting and an annual scorecard on how effectively automakers are completing any recalls.

A copy of the PARTS Act can be found HERE.

The second bill – the Early Waning Reporting Systems Improvement Act – fills a safety gap created by the historically low number of defect investigations launched by the National Highway Traffic Safety Administration (NHTSA) in recent years. The legislation ensures that auto manufacturers will provide more information about incidents involving fatalities and serious injuries directly to the public. It will also require NHTSA to make the information it receives publicly available in a user-friendly format, so that consumers and independent safety experts can evaluate potential safety defects themselves. A copy of the Early Warning Reporting Systems Improvement Act can be found HERE.

The third bill – the Stay Aware for Everyone (SAFE) Act – tackles the threat of distracted driving; a problem that is only increasing with the proliferation of "driver assistance" technologies that can encourage complacency if misused on the road. The SAFE Act will specifically require the DOT to study how driver-monitoring systems can prevent driver distraction, driver disengagement, automation complacency, and the foreseeable misuse of advanced driver-assist systems, as well as require a rulemaking to mandate the installation of driver-monitoring systems based on the results of this study. A copy of the SAFE Act can be found HERE.

The fourth bill – the Modernizing Seat Back Safety Act – addresses the thousands of preventable fatalities and life-threatening injuries that have occurred because of motor vehicle seat failure during a collision. The legislation will require NHTSA to update its standards for seat back integrity in new cars, an essential action that NHSTA has neglected to take for more than fifty years despite repeated horrific tragedies involving children and infants who were killed when the vehicles they are riding in are rear-ended, and the front seats collapsed on them.

Andy and Liz Warner and their children suffered a devastating loss when their daughter and sister, Taylor Grace Warner, was killed in 2010 at just 17 months old when the front seat of their family car collapsed on top of her when they were struck from behind.

"Tragically our family is not alone in experiencing this type of unthinkable loss," said the Warners. "Hundreds of children have been killed and many more have been seriously injured because of seat back failure. This could be prevented with action by the National Highway Traffic Safety Administration to update the safety standard, which this bill would require. Senators Markey and Blumenthal have been advocating for auto safety and supporting the cause for change in honor of our daughter and the others needlessly killed or injured. Our family thanks them for their leadership on this issue and urges Congress to pass this legislation."

A copy of the Modernizing Seat Back Safety Act can be found HERE.

All four bills have been endorsed by Advocates for Highway and Auto Safety, the Center for Auto Safety, Consumer Reports, Consumer Federation of America, the National Consumers League, Consumers for Auto Reliability and Safety, Safety Research and Strategies, Safe Roads Alliance, EndDD.org, and StopDistractions.org. "Tragically, COVID-19 is not the only health and safety threat our nation faces," said Rosemary Shahan, President, Consumers for Auto Reliability and Safety. "We applaud Senators Markey and Blumenthal for continuing to champion protecting motorists and their families from deadly defects that claim precious lives."

Read more: Senators Markey and Blumenthal champion auto safety legislation to reduce the carnage on America's roads
 

"Chris Norlin, like so many others, is hardly ever behind the wheel these days as he follows guidelines to stay at home and play hide-and-seek with the coronavirus. Which naturally leads him to wonder: Why is he still paying so much for car insurance? His household's two cars now sit idle in West Los Angeles, aside from the occasional run to the grocery store. 'Surely with all the sheltering at home and reduced driving, insurance companies will be paying out far fewer claims over the next couple of months,' Norlin, 54, told me. It's a fair point. Why should anyone have to pay the same amount to insure something when their risk is greatly reduced?

I reached out to every major vehicle insurer. Some have recognized the changed circumstances, others have not. On Monday, Allstate said it will give its customers a 15% break on their monthly premiums for April and May. The company said it will return more than $600 million to policyholders through credits to their bank accounts, credit cards or Allstate accounts. 'This is fair because less driving means fewer accidents,' said Allstate's chief executive, Tom Wilson....

'Insurers should definitely reduce premiums to reflect the dramatically reduced risk we and they now face, given that highways and streets are virtually empty,' said Amy Bach, executive director of the advocacy group United Policyholders. 'Insurers seem to be very good at raising our rates when they perceive higher risk, but generally need to be forced to do the reverse,' she told me....

The industry has long known there's a correlation between the number of miles driven and the likelihood of getting into a crash. 'Insurers are profiteering at the expense of consumers and small businesses who are hard-hit by the coronavirus pandemic,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety. 'It's obscene for insurers to charge the same amount in these dire times, especially when individuals, their families and small businesses are struggling just to stay afloat,' she said. Unless a vehicle insurer can prove that stay-at-home policyholders represent the same level of risk as those who drive — which they do not — I agree with Shahan.

Read more: Los Angeles Times: "Why Isn't Car Insurance Cheaper As We All Stay Home?"
 

"As the world grapples with the economic impact of the spreading coronavirus, the Trump Administration is mulling over whether to seek another round of tax cuts. Given the extreme polarization in Congress, it remains to be seen whether the Democrats and Republicans will be able to agree on any tax measure in this election year.

But despite the polarization in Washington, there is one federal tax cut that has already started to attract bi-partisan support among legislators from both major parties, in California. Legislators in Sacramento are joining forces to call on Congress to end the unfair double-taxation that is hitting consumers who prevail against corporate lawbreakers."

Read more: Fox and Hounds: "Protect Consumers from Double Taxation"
 

"General Motors is contacting about 900 customers who've complained of brake failure in their pickups to come in for an immediate fix.

The automaker also is warning about 160,000 owners of 2019 GMC or Chevrolet light-duty pickups to not drive the vehicles if 'Service Brake Assist' or 'Service ECS' warnings illuminate on the instrument panel.

That's because the power brakes could fail, requiring hard manual braking or holding the emergency brake to stop the vehicle.

'If you have all these telltales when you start up the vehicle, indicating brake issues, don't drive your vehicle,' said Dan Flores, a GM spokesman. 'Call your dealer.'

Nearly 1,700 GM pickup owners have complained since mid-December that their power brakes did not work after they had a recall done and then used the OnStar app to start their vehicles. GM said 162,000 owners in total had that initial recall done.

Pickup owners have told the Detroit Free Press they were terrified when the power brakes went out, in some cases saying they narrowly escaped a crash. GM has said it knows of no one injured or worse because of the problem.

GM now has a fix to that recall repair. But some pickup owners say they are angry that GM did not notify them sooner of the potential danger. Safety advocates contacted by the Free Press agreed, saying GM should have used OnStar to notify customers of the risks given GM knew of the brake problem in mid-December.

'What a terrifying defect,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a national nonprofit auto safety and consumer advocacy organization. 'GM should have warned its customers right away about the hazards.'

GM put its customers at risk by not notifying them sooner they could lose brakes and not putting a stop-drive notice on it, said Sean Kane, president of Safety Research and Strategies Inc., a Massachusetts firm that does auto testing for plaintiffs' lawyers and other clients....

'I'm not trying to trivialize what 1,700 customers are angry about and if a customer said it happened, it happened,' said Flores. 'And 1,700 customers is 1,700 too many, but we're not talking about a huge number. We understand customers are angry. But we have a fix to the problem.'

Shahan said 1,700 is a big number, especially in a month's time.

'That's a three-alarm fire,' said Shahan."

Read more: Detroit Free Press: "Safety Experts: GM put 2019 pickup owners at risk after brake issues found"
 

"...it's troubling from a privacy standpoint — and a bit creepy — that information about your driving is being used by various companies as a profit generator without your explicit authorization (even if it's tacitly covered in the fine print of whatever contract you've signed).

'I think that most consumers would be very surprised to learn about this,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento advocacy group.

Aaron Lowe, senior vice president of government affairs for the Auto Care Assn., a trade group for auto shops and parts makers, said it's common for dealers and manufacturers to sell vehicle information, including odometer readings counts, to insurers or their proxies.

'There's a lot of information that gets traded,' he told me. 'It's amazing.'"

Read more: Los Angeles Times: Your car dealer may be quietly selling your data to your insurer
 

"Buying a used car can be a daunting process and according to new research, it can be dangerous for consumers.

Not everyone can afford to buy or lease a new 'worry-free' car. Hence the appeal of 'certified' used cars.

But the consumer group[s] ConnPIRG [and the Consumers for Auto Reliability and Safety Foundation] recently found that one out of 9 cars sold at Auto Nation has recalls on it, including issues with brakes, steering wheels, ignitions, and airbags.

'Auto Nation, CarMax and dealerships like it are putting consumers and customers in danger before they even get home,' said Justin Landry, ConnPIRG.

U.S. Senator Richard Blumenthal says it's a big issue here in Connecticut.
   
'Many of these cars with defects are labeled "certified," which leads the buyer to believe that in fact they are safe and that they have been repaired,' said Blumenthal.

Blumenthal's office conducted its own review at this CarMax in Hartford.

'One out of every 8 of these cars has a serious defect under recall,' said Blumenthal.

In a statement, CarMax said 'we share vehicle specific open recall information in-store, and online to ensure our customers know about open recalls prior to purchase.'

Still, Blumenthal says that's not good enough. He introduced [federal] legislation that would require dealers to repair [safety recall] defects [on all used vehicles] before sale.

'People driving these cars off the lot, even if they're told about the defect, pose a danger to themselves, their passengers and other motorists on the road,' said Blumenthal."

View report: WTNH News: "Sen. Blumenthal demands end to dangerous used car sales"
 

"Buying a used car is always a bit risky.

You don't know how that vehicle was driven or maintained. It could have been damaged in an accident or by flood waters. Or it could be subject to an "open" recall — a safety problem identified by the manufacturer that has not been repaired.

Don't assume the dealer has fixed the problem — or will even tell you about it, consumer advocates caution....

Corey Jackson was seriously injured by a faulty ignition switch in the 2008 Buick LaCrosse he bought at a Chicago-area used car lot in 2016....

Seven months later, he crashed head-on into a tree, but the car's airbags did not deploy. Jackson's head slammed into the steering wheel and he was knocked unconscious. He suffered a broken jaw, collarbone, wrist and ankle. His hip was shattered. He's still in pain and walks with a limp, but says he feels lucky he wasn't killed.

'I lost my job, I lost my vehicle and I'm still trying to repair my life,' Jackson said....

So what happened? [Jackson is suing the dealer and General Motors, alleging violations of various state consumer protection laws.] Jackson's attorney, Michael Serra at Langdon & Emison, claims that when the car ran off the road, the faulty ignition switch went from the 'run' position to 'auxiliary' or 'off,' which shut down the airbag system.

How widespread is the problem?

Many used vehicles sold by licensed dealers have open recalls, according to a report released on Tuesday by the U.S. Public Interest Research Group (U.S. PIRG) Education Fund and Consumers for Auto Reliability and Safety (CARS).

Rosemary Shahan, founder and president of Consumers for Auto Reliability and Safety, believes it's 'a deceptive and unethical practice' for a dealer to sell a vehicle with an unrepaired recall.

'Dealers don't know when they sell someone one of these cars, if the customer will even make it home,' Shahan told NBC News BETTER. 'There have been cases where people have been injured or killed in a [crash] caused by the defect within hours, the same day that they got the car.'"

Read more: NBC News BETTER: How to make sure a used car is safe
 

"A new report out Tuesday accuses one of the nation's largest car retail chains of selling used vehicles with unrepaired safety recalls. The U.S. Public Interest Research Group and Consumers for Auto Reliability and Safety Foundation looked into 2,400 used vehicles at 28 AutoNation dealerships nationwide. [They] claim 'one in nine' had safety recall issues, including problems linked to deaths and injuries...
   
In 2015, AutoNation said it would no longer sell any vehicle, used or new, with an open safety recall....

But a little over a year later, AutoNation reversed course and resumed selling vehicles with active recalls. Jackson told Automotive News 'with the Trump administration there's no way that that issue is going to be addressed from a regulatory point of view.'

Democratic Senator Richard Blumenthal, who's pushing [federal] legislation to outlaw the sales of used cars with unrepaired defects, said disclosure isn't enough.

'Disclosure is really no substitute for repair,' Blumenthal said. 'The dealers who say disclosure is a substitute for repairs ignore the plain fact that unsafe vehicles are a menace. Not only to passengers and drivers, but to other motorists.' "

Watch full report: CBS This Morning: AutoNation accused of selling vehicles with unrepaired safety recalls
 

"Action News Investigates has learned Pennsylvania allows used cars to be sold even if they have potentially dangerous defects.

One of the dealerships selling these cars is owned by U.S. Rep. Mike Kelly, R-Pa.

Last year, Pennsylvania legislators and Gov. Tom Wolf went out of their way to enact a new law which gives dealers codified permission to sell used cars with open safety recalls.

The car dealers' lobby pushed hard for the law. The dealers said this law actually protects consumers by requiring any open recalls to be disclosed to buyers.

But consumer advocates said the law protects car dealers from lawsuits and exposes everyone to potentially dangerous cars....

Jewel Brangman of San Diego was one of 24 people worldwide who have been killed by exploding Takata airbags, which have since been recalled. Action News Investigates spoke to her father, Alexander Brangman.

He said debris from the airbag "severed the carotid artery in her neck and killed her," adding, "It's something that should never happen because it's preventable."

A 2008 Chevrolet Avalanche and 2012 Ford Fusion had open recalls for Takata airbags when Action News Investigates found them for sale at car dealerships owned by Kelly.

They were among 17 vehicles with unrepaired safety recalls offered for sale at Kelly dealerships in early March --nine in Uniontown and eight in Butler....

Rosemary Shahan is president of Consumers for Auto Reliability and Safety. Action News Investigates asked her about the recalled vehicles on Kelly's lots.

'That is tremendously dangerous and irresponsible,' she said....

Pennsylvania's new law allowing the sale of recalled vehicles was backed by auto dealers. Consumer groups opposed it, saying the recall disclosures may get lost in the reams of paperwork that have to be signed when buying a car. Consumer advocates, including Jewel Brangman's father, said Pennsylvania is now allowing more dangerous cars on the road.

'Personally, I think it's appalling,' Brangman said.

He lobbied against the Pennsylvania law, writing a letter to Governor Wolf.

'This was a preventable tragedy that claimed Jewel's life. That bill is going to set forth and put a lot of lives in danger in the area of Pennsylvania and surrounding areas,' he said."

Read more / watch video: WTAE-TV Pittsburgh: "Pennsylvania law allows sale of potentially dangerous recalled vehicles"
 

"Carlos Solis never knew he was driving with a "shrapnel bomb" inside his steering wheel.

The 35-year-old father of two was waiting to make a left turn on a suburban road outside Houston when another car struck the front end of his Honda Accord, triggering its airbags.

Instead of protecting Solis, the defective airbags shot a piece of metal into his neck and severed his carotid artery, killing him within minutes....

For auto dealers, the string of accidents was a warning sign of what was to come: a barrage of lawsuits filed against them for selling recalled used cars without fixing them first.

Auto dealers came up with a plan to pre-empt the problem.

They crafted what's known as "model legislation" that would allow them to continue selling recalled used cars, so long as they disclosed open recalls to customers — somewhere in a stack of sales documents. They then turned to their army of lobbyists — more than 600 on call in 43 states — to help get the measure passed, one state at a time....

Lawmakers have been touting the bill as a consumer-safety measure. But it was written by Automotive Trade Association Executives, an industry group in Washington, D.C., that represents more than 100 executives from regional auto dealer associations....

But Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a California-based consumer advocacy group, said auto dealers are only interested in protecting their bottom lines, not the safety of customers.

'If the dealers can get the bill passed, they will be able to say the only duty they have is to "disclose" that there is a safety recall, which can be hidden in a stack of documents and presented to the consumer only after they have already test-driven several cars, chosen a car, negotiated the price, applied for credit, and signed a purchase or lease contract,' Shahan said. 'Too late to be effective or meaningful as a form of disclosure.'

Read more: Center for Public Integrity, USA Today, and Arizona Republic: "The multi-state push to let car dealers get away with selling you a defective car"
 

"An adverse action notice — it's something consumers want to avoid at all costs, typically indicating you've been turned down for a loan or there's something seriously wrong with your credit file.

Such notices are required by federal law when credit is denied. But in some cases, including car purchases, they may not mean what they say, and in fact may be frightening people unnecessarily.

Trust me on this.

I got one of these notices the other day and, not to brag, I've got sky-high credit scores, as might be expected for someone who gives consumer tips for a living.

Yet here was a letter from a local dealer related to my recent purchase of a used car that was in considerably better shape than the 10-year-old car I traded in.

"This letter is being sent to you because you were either denied credit or offered credit at lower terms than what you applied for based on your recent credit inquiry for a vehicle," it says.

So it was more than a little surprising that I was apparently being told I'm too risky to do business with....

The letter cited vague explanations from the credit agencies that included "too few accounts currently paid as agreed" and "too many loans with recent delinquencies."

Again, I'm not showing off (much), but each of the three big credit agencies — Equifax, Experian and TransUnion — gave me a score of over 800 at the time of the car purchase. I've never missed a loan payment in my life.

So it was more than a little surprising that I was apparently being told I'm too risky to do business with.

"It's very strange," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento-based advocacy group. "For anyone with good credit, this would be a real insult."

Read more: Los Angeles Times: "When buying a car may result in a scary (and pointless) adverse action notice"
 

"What would buying or leasing a new car be like if dealerships didn't hold a monopoly on the market? It's a possibility that emerging car subscription services and traditional automakers alike have dangled in front of consumers in recent years, in spite of the dealership industry's attempts to slap those services away....

The challenge of getting rid of dealers

For decades, long before Tesla and others threatened to upend the traditional car sale model, going to the dealer was the only way to purchase or lease a new car. State laws protecting franchises from manufacturers, dating back to the history of the automobile, ensured it stayed that way.

Those entrenched laws have received little attention until recently. As the cost of buying a new car continues climbing -- reaching an average of $34,000 in 2019, according to Experian -- manufacturers are considering alternative ways to get consumers interested in new cars. And they're finding that the car dealership industry isn't going away without a fight.

'I can't see existing auto manufacturers getting rid of dealers,' auto industry analyst Bob Reisner told the tech publication Digital Trends recently.

'Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against.'
   
'I think the reason that Tesla hasn't had that ability [for direct-to-consumer sales] taken away from them is that they produce cars in California,' Rosemary Shahan, of Sacramento advocacy group Consumers for Auto Reliability and Safety (CARS), tells ConsumerAffairs. 'So there are a lot of workers who are employed by them, and both sides of the aisle want to keep manufacturing in the state.'

CARS has been outspoken about the dangers of self-driving car testing, Autopilot, and other experimental car technologies that Silicon Valley is embracing. But when it comes to the dealership law, Shahan says that Tesla is being unfairly targeted by dealerships that simply don't like competition.

'We don't think you should be captive to the dealers,' Shahan adds. 'Dealers have a monopoly on the sale of new cars. If you want to buy a new car, almost everywhere, you're forced to go to a franchised car dealer.'
   
Shahan, with CARS, blames the car dealer lobby in California for numerous gutted attempts to allow more direct-to-consumer sales in the state. She compares the process of visiting a car dealer to getting a root canal.

'Dealers know that most people hate going to car dealerships,' she says. 'They know that if people aren't forced to go there, they're not going to go.'

Read more: ConsumerAffairs: "Car dealers fight to hold monopoly on new cars"
 

"A scathing state report released this past fall has shone a light on the used car industry, prompting lawmakers to reconsider industry enforcement and to push for ways to strengthen laws to protect consumers from predatory dealers.

But, as consumers may know, buying a used car may be unavoidable....

Consumers can protect themselves from predatory sellers by educating themselves on their rights, said Rosemary Shahan, president of the California-based nonprofit Consumers for Auto Reliability and Safety.

Shahan has advocated for stronger consumer protection laws for car buyers nationwide for four decades, and was the driving force for California's auto lemon laws, which later became a model for all 50 states. She described the auto sales industry as the Wild Wild West, and said consumers are uniquely vulnerable during these kinds of transactions.

'You're at a big disadvantage because you have no idea what the condition of the car is,' Shahan said. 'The days when you could lift the hood and kick the tires and kind of know what was going on with a car are long gone.'

That's why her nonprofit put together 12 tips for buying a used car, she said."

Read more: Buying a used car? Here's some advice from experts
 

"DETROIT -- Nearly four years ago, the U.S. government's highway safety agency began investigating air bag inflators made by ARC Automotive of Tennessee when two people were hit by flying shrapnel after crashes.

The National Highway Traffic Safety Administration estimated that 8 million Fiat Chrysler, Hyundai, Kia and General Motors vehicles in the U.S. use the company's inflators. The investigation became more urgent in 2016 after a Canadian woman driving a Hyundai was killed by shrapnel from an ARC inflator.

But public records posted by the agency show little progress on the probe, which began in July of 2015 and remains unresolved.

Now another person has been hurt by an exploding ARC inflator, this time in a General Motors vehicle. Safety advocates say the slow investigation is a symptom of an agency that has done little to regulate the auto industry.

'That's really unacceptable. NHTSA should have gotten on top of it sooner,' said Rosemary Shahan, president of California-based Consumers for Auto Reliability and Safety. 'It's just really painfully obvious that it's a (safety) defect.'"

Read more: Daily Herald: "Driver hurt by airbag shrapnel as investigation drags on"
 

"If you buy a new or used car, and a few days later the dealer tells you there's been a problem with your financing, alarm bells should go off. You might be the victim of a "yo-yo" financing scam — so called because you're pulled back into the dealership to renegotiate the deal at a higher interest rate and worse loan terms....

Yo-yo financing 'is a significant problem with dealerships that cater to lower-income borrowers, and oftentimes for people of color,' says Rebecca Borné, senior policy counsel for the Center for Responsible Lending.

Rosemary Shahan, founder and president of Consumers for Auto Reliability and Safety, a nonprofit consumer advocacy organization, calls yo-yo financing scams 'epidemic.' Often, she says, dealers target people who are vulnerable or seem uninformed: young or older people, minorities, recent immigrants and even members of the military....

'Once you fill out that credit application, they know so much about you' and can then target victims, says Shahan. So it's important for all shoppers — especially those with poor credit — to be alert to early signs of a possible yo-yo financing scheme.

If the dealer persists, or threatens you, Shahan says it's time to consult an attorney. Visit the National Association of Consumer Advocates site, which lists attorneys who specialize in auto fraud cases. When handled correctly by an attorney, the situation can be resolved without any harm to your credit, Shahan says."

Read more: Nerdwallet: "Don't Let a Car Dealer's 'Yo-Yo' Financing Scam Reel You In"
 

"Motorists who live in New Jersey and have a major problem with a new vehicle have a handy tool: the best lemon law in the land. But about a third of the states have such weak lemon laws that consumers will have a tough time getting a fair deal, according to a study released this month by the Center for Auto Safety.

All 50 states and the District of Columbia have 'something that is arguably a lemon law,' but too many fail consumers, said Jason Levine, the executive director of the center, a nonprofit consumer advocacy organization founded by Ralph Nader.

In the worst states, Mr. Levine said, there might as well be no lemon law on the books....

For consumers, a related and historically worrisome issue is interstate lemon laundering, said Rosemary Shahan, the president of Consumers for Auto Reliability and Safety, a nonprofit in Sacramento.

When a vehicle is repurchased by the automaker, Ms. Shahan said, not all states mark the title with its lemon status. That lets an automaker sell the vehicle again without the new buyer knowing its troubled history, she said.

In 1996, the Federal Trade Commission considered requiring all states to mark the titles of lemons. But faced with opposition from the auto industry, the agency backed off.

'The F.T.C. failed to act, and still fails to act, to protect the public from lemons with serious defects,' Ms. Shahan said."

Read more: NY Times: For Car Buyers Who Got a Lemon, State Laws Vary Widely
 

"In October 2016, Corey Jackson was at a used car lot in South Chicago Heights, signing the papers to buy a 2008 Buick LaCrosse.

He was excited about the leather interior, sunroof and heated seats — but he didn't know that the used car was the subject of a safety recall because of problems with an ignition switch defect already implicated in 124 deaths nationwide.

The used car salesperson didn't mention the recall, Jackson says.

And because the Markham man bought the car used, he never got a notice from the manufacturer, General Motors.

Seven months later, on May 16, 2017, Jackson was driving home from work at WeatherTech, the car floor liner manufacturer, when he tried to pass a car on Bluff Road in Lockport Township. He sped up but quickly abandoned the attempt because another car was coming toward him from the opposite direction on the two-lane road. Suddenly, his car veered off the road and onto the grass, crashing into a tree.

The ignition switch had failed, Jackson's attorneys say, suddenly shutting off the engine and cutting power to the steering wheel, brakes and airbags.

Jackson was knocked unconscious in the crash. He was wearing a seat belt. But, with no inflated airbag, he slammed into the steering wheel. He lost several teeth and broke his jaw. The 37-year-old still walks with a limp from injuries to his hip and a knee and a broken ankle.

Now, Jackson is suing GM and the dealer that sold him the car, FJH Cars Inc. of South Chicago Heights, blaming them for putting him in harm's way with a defective car that was under recall the day he bought it....

Rosemary Shahan, founder and president of the nonprofit organization Consumers for Auto Reliability and Safety, says there's something wrong that no federal law is in place to prevent used cars that are under safety recalls from being sold. Shahan says used car dealers could easily check a car's recall status, 'but they don't do that. They just go ahead and sell it anyway.'

And she says, 'Most people just assume that, of course, the dealer's fixed the recall first.'
   
In some cases, people have been killed or injured in cars they didn't know were under recall. The 2004 crash deaths of two California sisters, Jacqueline and Raechel Houck, ages 20 and 24, in a rented Chrysler PT Cruiser that was under recall led to a 2016 federal law requiring rental car companies to take recalled vehicles out of service until they are repaired.

Legislation that would have imposed similar requirements on used cars was introduced in 2017 by U.S. Rep. Jan Schakowsky, D-Illinois, and Sens. Richard Blumenthal, D-Connecticut, and Edward Markey, D-Massachusetts, but failed under pressure from industry.

Schakowsky says she plans to try again to get a federal law passed.

'The best thing we can do to get recalled cars off the road is fix the problem before the car is on the road,' Schakowsky says. 'It's already illegal to sell a new car or offer for rent a car under recall. Used car buyers must have the simple assurances that known defects have been fixed before you drive the car off the lot.'

Some consumers have fared better in state courts, where they can sue under state laws that more broadly address the sale of defective products.

Corey Jackson, who couldn't work after his accident yet still owed payments on the totaled Buick, says he wishes his recalled car had never been put out for sale.

'It cost me my lifestyle, my job — damn near my life,' Jackson says. 'Just value the person and not just the sale.' "

Read More: Chicago Sun-Times: "Consumers, Beware: Used car dealers are selling vehicles despite open recalls"
 

"Weeks before Kyle Plush died in his parked Honda Odyssey, federal safety regulators received a dire warning from an alarmed parent about a possible safety defect in the same minivan model.

The Oklahoma owner of a 2011 Odyssey said there was a chronic latching problem with their third-row seat and urged a federal recall. The seat wouldn't lock in place and would suddenly flip over if someone sat or leaned on it. And when the seat collapsed, the force was too much for the motorist's youngster.

'(It) does not latch properly. The seat falls backwards when my 8-year-old son sits on it,' warned the vehicle owner. 'It doesn't matter if the vehicle is in motion or not. The seat goes in a backward motion when someone is sitting in it with the pressure of their back leaning on it. I feel this could be dangerous and needs to have a recall.'

It was more than dangerous for Plush. It was deadly.

A Seven Hills high school student, Plush died on April 10 when he was trapped in his minivan after the seat unlatched and flipped over on him. Pinned upside down against the closed hatchback, the seat back pressed against his chest, making it hard to breathe. He died of asphyxiation.

But federal officials with America's top cop for vehicle safety, the National Highway Traffic Safety Administration, took no action on the report....

But multiple safety advocates were appalled NHTSA isn't digging deeper. The UC doctor's inspection of the vehicle was alarming enough to merit an investigation and a string of past complaints makes it worse.

'That's a defect. When it seems to be latched but it's not, that's a safety defect,' said Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS), a nonprofit advocacy group in Sacramento, California. 'The fact that they have a series of complaints also raises a bunch of red flags.'

Sean Kane, the founder of Safety Research & Strategies, a consulting firm in Rehoboth, Massachusetts, said a single nonfatal complaint can be enough to warrant a recall, let alone a fatal accident. He said Plush's death begs further scrutiny.

'There should be a formal defect investigation,' Kane said. '(NHTSA's) job as an agency is not to wait for bodies to stack up.' "

Read more: Cincinnati Enquirer: " 'A child could die.' Honda Odyssey owners warned feds about seat dangers before Kyle Plush's death"