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Consumers Lose With Defeat of Title Branding Bill, Says NADA

22 October 1998

Consumers Lose With Defeat of Title Branding Bill, Says NADA

    WASHINGTON, Oct. 21 -- Consumers were dealt a blow today when
Congress failed to enact important title branding legislation. This bill would
have protected consumers and businesses from unknowingly purchasing $4 billion
in rebuilt salvaged vehicles annually, according to the National Automobile
Dealers Association.
    NADA Chairman Paul J. Holloway released the following statement:
    "Title branding legislation would have provided valuable information to
consumers and dealers, helping to prevent deceitful undisclosed resale of
salvage vehicles. Consumer groups, rebuilders and junkyards united to distort
the intent of this clearly pro-consumer legislation to the detriment of the
American public. This is not consumer groups' finest hour.
    "Congress has missed a chance to stem the almost unfettered freedom that
dishonest rebuilders have to defraud the public. Dealers will be back next
year urging passage of title branding legislation. Consumers and dealers must
be protected from the fraudulent practices perpetuated by the failure to enact
legislation today."
    The National Automobile Dealers Association represents more than 19,600
franchised new-car and -truck dealers holding nearly 40,000 separate
franchises, domestic and import.