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November 17, 2005
Bitter Lemonade: State Farm Sued Over Mistitled Vehicle
A couple days ago we tipped you to databases where you could submit a Vehicle Identification Number [VIN] to see if a car or truck had been declared a total loss. It's not clear if these services would have helped a Pennsylvania consumer, who bought a used vehicle that had its history misrepresented by State Farm insurance.
According to this press release and this advocacy site, State Farm sold at least 30,000 salvaged vehicles without indicating that status on the vehicles' titles.
Now State Farm has negotiated a settlement with the Pennsylvania Attorney General, which urges consumers to accept a cash settlement for the difference in value between what they thought they were buying and what they actually got.
Robert Beaves, the Pennsylvania motorist who bought a used Honda Civic that was incorrectly sold by State Farm, is suing the insurer and the car lot where he bought the car, and is refusing to accept the approved settlement amount of $2,700. Beaves contends that he's lost more than that amount, now that he's the proud owner of a vehicle with a "salvage" title.
Going back to the hurricane databases, if the salvage action isn't reported relative to those VIN numbers, it's not clear if you will actually be getting good information or not. Beyond the Beaves' lawsuit, it will be interesting to see if any agency or watchdog group will oversee correct reporting of the hurricane damaged vehicles.
Posted by Frank at November 17, 2005 12:05 PM | Filed under Auto News
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