Consumers who purchased salvaged vehicles may be eligible for payments in coming months under a $40 million multisate settlement with State Farm Mutual Insurance Company.
State Farm, after an internal review, determined that in some cases it had failed to “brand” the title of a vehicle that the company acquired following an accident in which the vehicle is totaled as salvaged.
An estimated 30,000 consumers nationwide may be eligible for payments ranging from $400 to $10,000, depending primarily on the current average value of their vehicle and the number of consumers who participate in the compensation program. It is estimated that most payments will range from $800 to $1,850. Compensation payments will go to the current owners of vehicles that may require “Salvaged” titles.
In addition to the $40 million in compensation for consumers, State Farm also will pay the expense of identifying the vehicles, tracing the current owners, contacting owners, and taking claims from owners. State Farm also agreed to modify business practices to ensure this does not happen again.
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Thanks, State Farm, for offering me $2,500 to settle for fraud you commited in allowing me to believe I purchased a “nice” used car for $13,000. This compensation is totally unacceptable. Now I have a salvaged car which is worth $0 if it gets totalled in an accident. Anyone interested in a class-action suit?
I’m also interested in a class action suit for exact same reason as Mary Beaves.
Count me in! This is not acceptable compensation for fraud!
same issues can the car still be insured with a “salvage” title mine was 16500 and what should fair compensation be other than total price paid!!!!
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