Return to News Page

Automotive Recyclers Association
Salvage Solutions Committee 2008 Activities Report

FEDERAL LEGISLATIVE ACTIVITY
Vehicle Identification Number (VIN) Registry

ARA, through the guidance and counsel of the SSC, approached Senator Pryor is to introduce legislation that would establish a publicly accessible VIN database.  This database is based on the NMVTIS system, but uses certain modifications that make the database open to the public, encompasses the self insured, and closes other gaps in the current NMVTIS statute.  ARA composed a letter with NICB, Experion and multiple consumers groups to send to DOJ asking them to publish the proposed regulations to implement the NMVTIS system. ARA has established the National Salvage Vehicle Reporting Program (NSVRP) to bring stakeholders together to provide VIN numbers to DOJ through NICB.  Legislation proposed by ARA may need to be redrafted to be consistent with the ongoing regulatory activity of DOJ's final rule.  We may take action to ensure that we have modified legislation prepared for introduction early in 2009.  ARA, with input from the SSC, will develop strategies to advance the legislation.

FEDERAL REGULATORY ACTIVITY
National Motor Vehicle Titling Information System (NMVTIS)

ARA's efforts to make America's roadways safer and provide valuable information to consumers took a major step forward with the U.S. Department of Justice's (DOJ) National Motor Vehicle Titling Information System (NVMTIS) reporting proposal published in the Federal Register on September 22, 2008.  The proposed rule sets forth regulations to implement 49 U.S.C. Section 30504(a) of the Anti Car Theft Act to provide for the public disclosure by insurance companies of the Vehicle Identification Number (VIN) for vehicles they determine to be total loss.  Additionally, the regulations require all automotive recycling or salvage yards to file a monthly report of the vehicle they process to the operator of the system in order to identify lost, stolen or otherwise fraudulently titled vehicles. Millions of vehicles are "totaled" by insurance companies due to extensive damage, flooding, fire and theft and are rebuilt and then sold fraudulently, with clear titles, to unsuspecting customers. Despite repeated attempts to curb salvage title fraud, the problem has increased as a result of the various state motor vehicle titling laws which create loopholes ready-made for fraud. Since the Anti Car Theft Act of 1992 and the subsequent amendment in 1996, ARA has invested years of education and advocacy to strengthen the reporting of end of life vehicles.  With the leadership of Herb Lieberman, the Salvage Solutions Committee (SSC) and ARA governmental affairs staff had communicated with DOJ, members of congress, NGOs and other stakeholders to bring NMVTIS to fruition. DOJ is required to make the information, it has already gathered, publicly accessible by Jan. 30, 2009. Insurer carriers, automotive recyclers and salvage pools will have until March 31, 2009 to submit their latest information to the Web site, and will be required to provide monthly updates. Automotive salvage/recycling yards will be required under this proposed rule to provide NMVTIS with:

• the VIN of such automobiles;
• the date on which the automobile was obtained;
• the name of the individual or entity from whom the automobile was obtained;
• a statement of whether the automobile was crushed or disposed of, for sale or other purposes

ARA, through the advice and support of the SSC, prepared and submitted commits to DOJ during the agency rulemaking period.  The comments were submitted on behalf of ARA members, affiliates and the automotive recycling industry as a whole.  The Salvage Solutions Committee is dedicated to making sure the voice of the automotive recycler is heard and acted upon within the federal bureaucracy.  ARA has reached out to multiple industry stakeholders for coalition support and expert advisement on this issue.  We respectfully thank staff within NADA, Consumers Group, DOJ and NICB for their commitment and time involved with this effort.  These organizations and others, proved beneficial for research, strategy and implementation purposes.

OTHER
Suspicious Salvage Transaction Hotline

The SSC has established a Suspicious Salvage Transaction Hotline.  The purpose of this hotline is to provide an anonymous line to bidders at an auction that see autos being sold for suspicious reasons, price, condition, etc.  ARA has been attempting to send information out to people via ARA newsletter, magazine and other collision and recycling magazine.

Submitted on behalf of the Salvage Solutions Committee:
Herb Lieberman, Chair, LKQ
Greg Bender, Speedie Auto Salvage
Eric Schulz, AAA Auto Salvage
Jim Watson, A B C Auto Parts & Wreckers, Inc.
Howard Nusbaum, LKQ
Mark Carnesecca, Auto Parts Group
Anthony Livingston, ARA staff advisor


Return to News Page