Cash For Clunkers NY

The recent passage of the “Cash For Clunkers” bill has sparked a nationwide wave of interest in the program, which provides up to $4,500 to car-owners who trade in their old “clunker” for a new, more fuel efficient alternative. However, the flood of enthusiasm for the program has led to the emergence of scams targeting car owners looking to benefit from the program. The Cash For Clunkers Information Network, a group of information sites that have educated the public about the new program since its inception in the senate, has issued a warning to consumers and is providing specific instructions on how to avoid scams, especially those targeted at people with bad credit trying to buy a car.

Even before the “cash for clunkers” bill was signed, consumer advocates were warning potential car buyers about the profusion of sites designed to collect consumers’ information and/or cash. The Better Business Bureau (BBB) warns that some con artists are seeking to exploit consumer curiosity about the program.

In an attempt to prevent fears of identity theft from derailing the program, the National Highway Traffic Safety Administration (NHTSA) issued a warning about official-looking sites which claim to offer information on how to trade in your car. Several Web sites claiming to be related to the Cash for Clunkers program are asking consumers to provide detailed personal information, such as their names, addresses and even social security numbers, so that they can register for the program and obtain vouchers in order to participate in the program. But those sites that ask for personal information or offer a pre-registration opportunity should not be trusted, the agency said.

The program’s full name is the Car Allowance Rebate System (CARS), and “You do not need a voucher and you are not required to sign up or enroll in this program,” says the National Highway Traffic and Safety Administration, which operates the rebate program on cars.gov.

“Fraudsters are using catchy names and trying to lure consumers into identity theft schemes,” said Michelle L. Corey, president of the St. Louis BBB.

Because of the great interest in this program and the vast number of Web sites that emerged, even the most net-savvy people have fallen victim to phishing scams and possibly to identity theft.

Don’t give out your information online unless it is to a trusted source. With the Cash for Clunkers program, there is no need to provide any personal information on any Web site.

While there are a lot of legitimate sites that have been around well before the bill was signed into law with information on the cash for clunkers program (like ours and others), you should be wary of any site that says you have to “register” to participate in the program, or asks you for any personal financial information. Some consumer information sites will offer a service that allows consumers to get price quotes from dealers so they can avoid wasting time and gas money driving around town. If you intend to use such services make sure they have a clearly defined privacy policy and visitor agreement (located at bottom of site) that assures you that your contact information will remain private and secure.