BBB NEWS RELEASE
BBB Calls for Expedited Processing
of 'Cash for Clunkers' Applications
September 8, 2009, Memphis, TN — Randy Hutchinson, Better Business Bureau of the Mid-South President, joined 69 other presidents of local Better Business Bureaus to co-sign a letter to U.S. Department of Transportation Secretary Ray LaHood and President Barack Obama. The letter urged government leaders to expedite payments of rebates to the auto dealers who participated in the Car Allowance Rebate System, commonly known as "Cash for Clunkers."
"More consumers than originally expected participated in 'Cash for Clunkers,' and in many cases it left dealers with unanticipated deficits," said Hutchinson. "Depending on dealer volume, out of pocket expenses could add up to a significant amount."
Hutchinson combined efforts with other Better Business Bureau leaders to help alleviate the unintended financial strain that this extremely successful program has placed on car dealers. Car dealers had to provide the rebate at the time of sale, but have had to wait to receive reimbursement of the rebates from the government.
Thousands of dealers were unable to submit paperwork for reimbursement before the 8 p.m. deadline on Monday, August 24, and the deadline was extended until 8 p.m. on Tuesday, August 25. In order to be reimbursed for each $3,500 or $4,500 rebate given for a clunker, dealerships were required to submit a 13-page reimbursement application that included the title, proof of registration and proof of insurance.
To read the co-signed letter to U.S. Department of Transportation Secretary Ray LaHood and President Barack Obama, visit www.bbb.org.