Tuesday, August 18, 2009

More problems with cash for clunkers

Rep. Joe Sestak plans to run to the left of Sen. Arlen Specter in next year's Democratic Party primary in Pennsylvania.

So it's quite interesting that like those Chicago area car dealers I wrote about yesterday, he sees problems with the government's cash for clunkers program.

The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for "immediate action" to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."

In recent days, auto dealers across the country have been complaining that the reimbursement payments are slow to process. And they said some of their applications were being rejected because of apparent procedural issues. The statistics Sestak cited suggest those complaints are not based on isolated incidents.

UPDATE 1:30pm: Montana is having problems too.

Related post:

Car dealers ask: Where is the cash for clunkers money?

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