Schumer Warns NY Drivers: Watch Out For "Cash for Clunkers" Scams That Could Cost NY'ers Thousands -- Program Just Began and Scammers Already Trying to Swindle Car Buyers

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Schumer Warns NY Drivers: Watch Out For "Cash for Clunkers" Scams That Could Cost NY'ers Thousands -- Program Just Began and Scammers Already Trying to Swindle Car Buyers

Scam Websites Asking Consumers For Names, Addresses and Phone Numbers - Providing Information Could Lead to Identity Theft

Under Schumer's Leadership, Congress Passed National "Cash for Clunkers Plan" Giving NYC Drivers $4,500 Cash if They Swap Old, Inefficient Cars for Newer, More Fuel Efficient Models

Schumer: New Scams Could Cost NY'ers Thousands and Hurt Chances of Getting Clunkers Rebate in Time

Today, U.S. Senator Charles E. Schumer warned New York drivers to watch out for Cash for Clunkers scams that can cost drivers thousands of dollars, lead to identity theft, and hurt consumers' chances of getting their Clunkers rebate in time. Schumer is calling on the FTC to weed out the fraudulent websites and scammers and shut them down immediately to prevent New Yorkers from being duped. The Cash for Clunkers program, now called the Car Allowance Rebate System (CARS), was signed into law by President Obama on June 24 after Schumer championed the legislation in the Senate. Since the bill became law, websites have arisen asking consumers to provide personal information about themselves, such as addresses and phone numbers, so they can register for the program. However, the CARS program requires no consumer registration. These scams have high potential to lead to identity theft and could hurt the chances of getting a rebate in time since the program expires of November 1, 2009. The CARS Program provides that New York City drivers can save up to $4,500 cash on the purchase of a new car. There are nearly 100,000 cars on the road in New York City would qualify for the program. Schumer was an original co-sponsor on the original Cash for Clunkers bill.

"During these tough economic times, we must to everything we can to protect consumers from these dangerous scam artists," Schumer said. "These fraudulent websites have the potential to cost New Yorkers thousands of dollars, the nightmare of dealing with identity theft, or much more if they get caught up in a scam. The FTC must find and shut down these sites to remove this hazard from the lives of New York City car-owners."

Sharp fluctuations in gas prices and tight household budgets are causing many consumers to rethink their vehicle preferences, while automakers are paying more attention to the fuel economy of their offerings than they have before. The CARS program has allowed thousands of New York City car owners to look into trading in their vehicles for a $4,500 rebate, but unfortunately, fraudulent websites are putting consumers in danger.

The bogus websites state that they are part of the government's CARS program in order to scam consumers. The websites ask consumers for personal information, including addresses and phone numbers. However, the CARS program does not require consumer pre-registration to participate in the program. Other phony websites offer to put consumers in touch with Clunker dealers in the area, but again consumers need to be aware the CARS program does not require consumers to pre-register or provide personal information to an outside source.

Schumer was an original co-sponsor on the original Cash for Clunkers bill, introduced in January. President Obama subsequently endorsed the program, and both the Senate and the House incorporated a version of the program into the FY 2010 Supplemental spending bill.

The legislation, signed into law by President Obama in June, will accelerate the removal of the most inefficient cars, trucks and SUVs from the road today and promote the purchase of more efficient vehicles. Under the program consumers may trade in their older vehicles and receive vouchers worth up to $4,500 toward the purchase or qualified lease of a new, more fuel-efficient car or truck. The program is authorized from July 1, 2009 to November 1, 2009 with $1 billion in emergency funding. Schumer is also urging New Yorkers who want to upgrade to a new and more fuel efficient car to act quickly, before the funding runs out.

Schumer added, "CARS is an excellent program that will help remove thousands of gas-guzzling, polluting cars, trucks and SUVs from New York City highways and roadways and replace them with better, more fuel efficient vehicles. To have con artists swoop in and try to take advantage of consumers is unacceptable and must be stopped."

Consumers can find information on the CARS program at http://www.cars.gov/. Consumers can file complaints about fraudulent websites and Cash for Clunkers scams at http://www.ftc.gov/.

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