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New York Slow to Join Used-Vehicle Database
Friday, January 30, 2009 10:04 AM


(Source: The Buffalo News)trackingBy Stephen T. Watson, The Buffalo News, N.Y.

Jan. 30--Starting today, consumers across much of the country will have access to a federal database that can swiftly reveal whether a used vehicle was stolen, for example, or damaged in a flood.

Consumers in New York, however, won't be able to get this crucial information about used vehicles here.

That's because the state Department of Motor Vehicles has yet to decide whether it can participate fully in the database.

But critics say the true explanation is states like New York are afraid of losing the money they make by selling this data to Carfax and other vendors.

"[The holdout states] are [citing] privacy concerns," Deepak Gupta, a staff attorney for Public Citizen, told reporters Thursday. "But the real reason is their need for revenue."

This database is intended to prevent fraud in the used-vehicle market and to make sure consumers don't unknowingly purchase a salvaged car that may be unsafe to drive.

The unveiling today follows years of court fights, bureaucratic foot-dragging and outright opposition from federal departments and private companies, advocates said.

"We see it as a watershed moment. It's not the end of the road, but it's getting over a huge roadblock," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a nonprofit advocacy group.

Backers acknowledge the database is a work in progress, with only 24 states providing all the requested information to consumers as of today.

But supporters say the system will become more useful in coming months as more states come on board and insurance companies and salvage yards begin to report vehicle data.

"The National Motor Vehicle Title Information System will help crack down on fraud and discourage auto theft. However, for this system to work, it needs the states' help," Sen. Charles E. Schumer, D-N. Y., said in a statement vowing to push for its full implementation.

The system -- go to nmvtis.gov for details -- is the result of a 16-year fight to get better, cheaper used-car information to buyers.

In 1992, Congress ordered the government to set up the database by 1996 in legislation that was intended to crack down on car theft and fraud.

"It barely made it through, but it's a very potent and wonderful law," Joan Claybrook, Public Citizen's president, said in a conference call for reporters.

The federal Transportation Department initially was charged with overseeing the creation of the database, but after years of minimal progress, Congress shifted that responsibility to the Justice Department.




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