CONSUMER NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS  


Complain about a product or service

Small Claims Guide | Class Actions | Lemon Law | FAQ | Resources | Newsletters | Spanish
Automotive    Education    Electronics    Family    Finance    Health    Homeowners    Shopping    Travel   
NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

State Farm Pays $40 Million to Settle "Branded" Car Title Issue



January 10, 2005
A multistate agreement with State Farm Mutual Insurance Company will result in $40 million in compensation to thousands of vehicle owners nationwide, New York Attorney General Eliot Spitzer announced.

State Farm Insurance

Payback: State Farm Writes Off Mississippi
Judge Nixes State Farm Katrina Settlement
Judge Rules Against State Farm in Katrina Case
Gulf Coast Homeowners File Class Action against State Farm
Sen. Trent Lott Sues State Farm over Katrina Damage
Pennsylvania Suit Challenges State Farm Salvage Title Deal
State Farm's Wrecked Car Owners Feeling Slighted
State Farm Pays $40 Million to Settle "Branded" Car Title IssueIllinois Supreme Court Overturns $1 Billion State Farm Judgment
State Farm Loses Replacement Parts Case
---
Complaints
Automobile Policies
Auto Theft
Underinsured Motorists
Homeowners Policies

The agreement resolves a problem with the required record-keeping on vehicles damaged by accidents or theft. Specifically, State Farm, after an internal review, determined that in some cases it had failed to comply with the legal requirement that the company "brand" the title of a vehicle that the company acquired following an accident in which the vehicle is totaled.

The company is now reviewing its records. After titling research is completed, an estimated 30,000 consumers nationwide and 200 to 300 in New York 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 branded 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 title branding problems do not occur in the future.

Under the agreement, State Farm will work with state motor vehicle departments to determine the specific vehicles that require a branded title. After the identification process is completed, Spitzer said it is expected that current owners of eligible vehicles will be contacted by their home state attorney general's office by the Fall of 2005. Consumers who complete a claim form and are approved should receive payment from State Farm later this year or in early 2006.

State Farm also is making a payment of $1 million to all of the state participants for consumer education, future consumer litigation, public protection, local consumer aid funds, and attorney fees and costs.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.


Consumer News

May 17 2008

Recent Recalls & Safety Alerts

READER SERVICES

Print, Email & More

Subscribe

Free consumer newsletters
Sign up now!



Back to the top |


Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search | Site Map | FAQ |
Consumer Resources | Small Claims Guide | Lemon Law | Newsletter | Contact Us
Advertise With Us | Testimonials | Newsroom | RSS Feeds | Video | Job Postings

Advertisement


Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2008 ConsumerAffairs.com Inc.  All Rights Reserved.