REFUNDS FOR DAMAGED VEHICLES:

Texas Attorney General Greg Abbott signed a settlement ensuring refunds totaling up to $10 million to Texans who unknowingly purchased vehicles that were previously damaged and deemed total losses by State Farm Mutual Automobile Insurance Co. The company, which voluntarily notified Abbott and other state attorneys general of the problem, reportedly failed to identify–or “brand”–the titles of some vehicles that had been salvaged or damaged when it received the titles from the original owners, as required by law. The vehicles were then sold to new owners, who may have been unaware the vehicles had been totaled by State Farm because the titles were not branded properly. Such sales occurred as far back as June 1997. Texas joined seven other states–California, Florida, Illinois, Iowa, Nebraska, New York and South Carolina–in spearheading the settlement, which totals $40 million nationwide. Texans will likely account for an estimated 25 percent of vehicle owners affected by the agreement, and can expect compensation ranging from $400 to $20,000, depending on the current average retail value of their vehicles and the total number of claims. According to the settlement, State Farm will track vehicle identification numbers of damaged vehicles sold in this manner and will notify the owners their titles may be faulty. Interested consumers can then file with the claims administrator for the compensation offered.