Consumers owed scrap value

Attorney general says consumers were entitled to the scrap value of the cars they turned in.

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As part of the “cash for clunkers” program, Oregon Attorney General John Kroger says dealers were required to pass along the scrap value to customers for cars they turned in.

The news has stirred up mixed reactions from the industry; some are willing to concede, while others are challenging the attorney general’s interpretation of the law.

In most cases, the vehicles’ scrap value was about $200, and Kroger has conceded that dealers were entitled to as much as $50 of that amount as an administrative fee for disposing of the cars. If none of the 8,600 Oregon consumers who participated in the clunker program had received credit for the scrap value of their trade-ins, that would have left $1.29 million on the table.

Some Eugene-Springfield car dealers said Thursday that they passed salvage money along to their consumers from the start, and others promised to do whatever is required.

Read the full story at The Register-Guard.

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