DMV and Attorney General's Office Announce Suit against Vehicle Charity

    SACRAMENTO, Calif.--June 2, 2003--The California Department of Motor Vehicles and the California Attorney General's Office today announced the filing of a civil suit against Cars 4 Causes, a charity operating from locations in Pacoima, Oxnard, San Diego and Santa Paula, Calif.
    Cars 4 Causes acts as a "referral" charity. Cars 4 Causes accepts donated vehicles, sells the vehicles, and gives the proceeds of the sales to charitable organizations selected by the person donating the vehicle.
    In documents filed today, the DMV and the Attorney General's office charged Cars 4 Causes with fraudulent and deceptive business practices and for violating the law regarding charities that sell vehicles.
    An investigation conducted by the DMV found Cars 4 Causes to have submitted false or incorrect documentation to the DMV, sold vehicles that did not meet safety and smog requirements, and in addition found that Cars 4 Causes failed to transfer titles in a timely manner after sales were made.
    If found liable on all charges, Cars 4 Causes could potentially pay a fine of up to $2,500 for each violation, could be required to pay restitution to purchasers who incurred losses as a result of Cars 4 Causes practices, and could lose their exemption from dealer licensing requirements as a charitable organization.
    Regarding the present action, DMV Director Steven Gourley said, "The filing of this suit sends a clear message that the Department will take action against any entity, regardless of its ostensibly charitable status, that takes advantage of California consumers."
    Referring to the recently filed case, California Attorney General Bill Lockyer said, "Cars 4 Causes is putting on our roads vehicles that do not meet California's strict anti-pollution standards. While it may help fund worthy charitable organizations, Cars 4 Causes cannot conduct its activities in violation of our laws and at the expense of our air quality."
    The DMV licenses drivers; maintains driving records; registers and tracks official ownership of vehicles and vessels; investigates auto and identity-related fraud; and licenses car dealers, driving schools and traffic violator schools. The Department is under the Business, Transportation and Housing Agency, which is under Secretary Maria Contreras-Sweet. Additional information about DMV is on the Department's Website, which is located at www.dmv.ca.gov.