| There is currently no uniform national law requiring | | | | When a car is destroyed in a crash, it is generally sent |
| disclosure of major automobile damage when the title | | | | to the junkyard where it is stripped for parts or in |
| is transferred. As a result, many consumers own | | | | some cases rebuilt. Most States require that salvage |
| vehicles with fraudulent titles, titles that have been | | | | or rebuilt cars carry a designation on their title so that |
| cleaned up to falsely reflect damage history. This is | | | | the consumers are alerted to the condition of the auto |
| known as automobile title washing. | | | | that they are purchasing. By so-called branding the title, |
| The 1985 odometer fraud act stands as a pillar of | | | | consumers are put on notice to exercise due care. |
| consumer legislation which has worked. It has made | | | | Unfortunately, several States do not require any title |
| our streets and wallets safer from the con artists who | | | | brands. Fraud artists use these States to wash titles |
| for years deceived countless American drivers. In 1985 | | | | of the salvaged cars and come up with a clean |
| a study estimated that 50 percent of all leased | | | | designation. Once a clean title is obtained, rebuilt |
| vehicles had odometers which were altered. A similar | | | | wrecks are put on used car lots and sold to |
| study released by the Department of Transportation | | | | unsuspecting consumers. |
| this year estimated that the tamper rate for 1992 was | | | | There certainly have been examples of cars cut in |
| 5 percent. Now, I suggest that that is progress. | | | | half, spot welded together, repainted, and sold with |
| Americans are also saving billions of dollars. Before the | | | | clean titles. One case we have heard of involved a |
| truth in mileage act, American car buyers were losing | | | | car whose frame was held together with chicken wire. |
| more than $3 billion a year to clockers who erased | | | | I suspect that is an extreme case, but it is one case |
| thousands of miles of wear and tear from car | | | | that we know about. Most tragic are the cases where |
| odometers. | | | | drivers have been killed or maimed when their rebuilt |
| The secret to the success of the odometer fraud bill | | | | wrecks simply failed or fell apart. Only after the |
| lies in the car title. By affixing odometer readings to the | | | | tragedy did buyers learn of the salvage history of their |
| car titles, the con men were finally outsmarted. Under | | | | vehicle. Experts have estimated that car buyers lose |
| the truth in mileage act even the most unsophisticated | | | | as much as $4 billion a year to salvage fraud, and |
| car buyer can now inspect an auto title and | | | | millions of drivers unknowingly face increased risk of |
| understand any car's odometer history. | | | | injury and accident. |