Kroger signs clunker settlement

By Nick Rees | Dec 18, 2009


SALEM, Ore. (Legal Newsline) - Oregon Attorney General John Kroger has announced settlements with two Portland-area automobile dealerships to refund customers for the scrap value of the vehicles they traded in under the federal Cash-for-Clunkers program.

Toyota of Gladstone and Larry Miller Honda of Hillsboro will pay a total of $43,571 to 236 Oregon consumers. Kroger also warned over 200 other Oregon auto dealers that they must comply with federal law and provide full scrap value refunds to consumers.

"Toyota of Gladstone and Larry Miller Honda of Hillsboro deserve credit for quickly agreeing to fix the problem when the Department of Justice brought it to their attention," Kroger said. "The rest of the auto dealers in Oregon that accepted Cash-for-Clunker rebates need to obey the law as well."

When contacted by Kroger's office, Toyota of Gladstone and Larry Miller Honda of Hillsboro readily agreed to fix the problem and quickly refunded participating customers. Toyota of Gladstone paid $20,020 in scrap value to 141 consumers and Larry Miller Honda of Hillsboro paid 95 consumers an additional $23,550.

An estimated 8,620 Oregonians took part in the federal Cash-for-Clunkers program with $36.6 million in rebates handed out for trading in fuel inefficient vehicles. A small number of consumers have received the scrap value of their vehicle on top of the federal rebate, but an investigation by the Oregon Department of Justice has shown that many more Oregon consumers have not received their full refund. That investigation remains ongoing.

Consumers either received a $3,500 or $4,500 credit for trading in a fuel inefficient vehicle under the Cash-for-Clunkers program. Additionally, dealers were required to return to consumers the full scrap value of their vehicle, although a $50 processing fee was allowed to be deducted.

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