Insurance Company Pays for "Lemons"

1 decade 4 years 7 months ago Friday, October 28 2005 Oct 28, 2005 Friday, October 28, 2005 1:43:28 PM CDT October 28, 2005 in News

265 Missourians should have received letters earlier this month. The letters told them their used cars had once been damaged, but had not been given a salvage title. This means they paid too much for their car and they could be having problems with the cars relating to old damage the new owners didn't even know about.

State Farm resold 30,000 cars without the salvage titles and now have to pay out $40 million to the current owners of the cars. The State Attorney General's Office decided to put the vin number and vehicle descriptions of the affected Missouri cars online so people who didn't get the letters have the information they need.

"They can look up this information online to determine whether a vehicle they had at one time was one that should have had the salvage title on it and they can weigh their legal options," explained Attorney General's Office spokesperson Scott Holste.

The people who received the letters have the option of accepting the settlement laid out in the letter or contacting a personal attorney. People who believe a car they used to own was affected can contact State Farm or a personal attorney as well. The people who received the letters can be eligible for anywhere from $300 to $10,000 compensation.

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