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For Immediate Release:  
For Further Information:
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October 5, 2006  
Kara Wood
973-504-6327

Office of The Attorney General
- Stuart Rabner, Attorney General
Division of Consumer Affairs
- Stephen B. Nolan, Acting Director

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State Reaches Agreement with Vehicle Donation Processing Center for Violations of Charities Act and Regulations
VDPC to Pay $33,876 in Settlement

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NEWARK - Nevada-based Vehicle Donation Processing Center (VDPC) will pay New Jersey $33,876.50 and register with the Attorney General as an independent paid fund raiser, under an agreement announced today by Attorney General Stuart Rabner and Division of Consumer Affairs Acting Director Stephen B. Nolan.

Over the past several years, VDPC solicited New Jersey residents to donate their motor vehicles to charitable organizations through newspaper ads and its web site. Some of the charitable organizations are not registered with the state as legally required.

VDPC also coordinated the sale of donated motor vehicles using unregistered independent paid fund raisers. VDPC typically received a large portion of sales proceeds as compensation and then the charitable organization received the remaining funds.

“Vehicle donation appeals have surged in recent years and this settlement highlights the need for consumers to be extremely wary before handing over their titles and keys,” Attorney General Rabner said. “Consumers have the right to ask how much of their donation actually goes to the charity and if the fund raiser and charity are registered to do business in New Jersey.”

The consent order resolves multiple violations of the Charitable Registration and Investigation Act of 1994 (ACRIA) and the state's Charities Regulations. The order also requires VDPC to register with the Attorney General as a charitable organization if, at any time, it operates as such, and before it solicits funds in any way. VDPC also is prohibited from participating in any solicitation efforts with any charitable organization that is not registered with the state.

AEvery charitable organization and fund raiser doing business in New Jersey is obligated to know and follow the rules regarding registration," said Acting Director Nolan. "The potential for abuse in the area of charitable solicitations is great."

Deputy Attorney General Brian M. Brennan represented the state in the VDPC matter.

The public can obtain information about charitable organizations and paid fund raisers who are registered to operate in New Jersey by contacting Consumer Affairs' Charitable Registration Unit at 973-504-6215 or by going to the unit's web site, www.NJConsumerAffairs.gov/ocp.htm#charity.

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