Slow Pay On Cash For Clunkers Program Stressing Dealers

08.18.09 | FL News Team

(Pittsburgh, PA)  --  Pennsylvania Congressman Joe Sestak says the National Highway Safety Administration will take action following complaints that thousands of auto dealer reimbursement requests are being delayed or rejected under the Government's Cash For Clunkers program.

The program was to have reimbursed dealers with within ten days of a vehicle's purchase.  More than three weeks later car dealers are still waiting for the government to pay up.  Bud Smail, of Smail Automotive Group, says his company is on the tip for 700-thousand dollars in federal rebates.  He adds he is frustrated by ever-changing federal reimbursement rules.

Representative Sestak says dealers' cash reserves are being stressed by the government's failure to pay up.  The National Highway Traffic Safety Administration says it has added staff to expedite paperwork.