The government is investigating at least 20 car dealerships it claims violated the rules of last year’s cash-for-clunkers program. Government auditors say up to $94 million in rebates may be ineligible because they lack the proper documentation.
One year after the $3 billion car-buying frenzy, the National Highway Traffic Safety Administration has reached an enforcement phase. Nine dealers have paid a total of $71,500 in fines.
NHTSA spokeswoman Karen Aldana said there’s no evidence of widespread fraud and noted that the violations are a small fraction of the 18,915 dealers who participated. The program allowed 678,418 new car buyers to get rebates up to $4,500 for trading in older, less fuel-efficient models.
Full story: ‘Cash for clunkers’ car dealers investigated – USATODAY.com
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