Cash for Clunkers Fraud
The Cash for Clunkers program, also called the Car Allowance Rebate System (CARS), was part of the U.S. government’s attempt to stimulate the economy as well as improve environmental impact of Americans’ vehicles. Under this program, people could get a rebate for trading in older, less efficient cars and trucks for newer, safer, and more fuel-efficient cars.
Cash for Clunkers began in July of 2009, and funds appropriated for the program were exhausted about a month later. Due to such high demand, applications quickly backed up. Now, government officials are finding more and more instances of fraud in this program. If you know of a Cash for Clunkers fraud, you should contact a Qui Tam attorney from Tycko & Zavareei, LLP, today at 202-973-0900 to discuss the best way to handle your case.
Types of CARS Fraud
Sadly, many dealerships cheated the Cash for Clunkers program in order to better their own financial status. There are several types of fraud that the National Highway Transportation Safety Administration has noticed in the applications, such as:
- Accepting vehicles that are uninsured or not drivable
- Accepting vehicles that are not on the government’s approved list
- Giving multiple credits per person
- Allowing people to purchase vehicles that were not approved as part of the program, such as RVs
- Failing to send the trade-in to a designated disposal facility
When dealerships committed this type of fraud, they were robbing you of the money being used to help people get the cars they needed. Thus, this fraudulent activity should not be ignored.
Contact Us
If you are aware of a person or dealership that committed Cash for Clunkers fraud, it is your responsibility as a concerned citizen to bring this unlawful action to court. As a Qui Tam case, you may be entitled to part of the damages awarded to the government. To discuss your case, contact an experienced Qui Tam lawyer from Tycko & Zavareei, LLP at 202-973-0900 today.
