After a six-month long legal battle between the state of Illinois and Carvana, a popular online car dealership, a formal settlement has been reached to better protect consumers looking to buy a car from their cell phone.
The deal comes after a year full of drama for the car dealer known for its towering vehicle vending machines and witty commercials.
Carvana has established itself as a one-stop shop for buying and selling used cars online, but last year it faced a barrage of complaints from state regulators, including here in Illinois.
These complaints are Carvana customers who said it took months, and in some cases, a year, for the company to submit the title and registration papers needed to legally drive a vehicle purchased online from the company. was centered on
The Office of the Secretary of State said it had launched an investigation after receiving hundreds of complaints from Carvana customers. As a result, Carvana’s dealer license was suspended last year.
It’s been two months since a popular used car company was banned from selling in Illinois. Lisa Parker of NBC 5 Responds reports.
As part of the agreement, the Office of the Secretary of State said it admitted that Carvana violated state law when it failed to transfer vehicle ownership in a timely manner. Instead, the company issued temporary out-of-state registration permits for months at a time, which also violated state law, a spokesman for the Secretary of State confirmed.
Secretary of State Alexi Giannoulias said regulators “won’t hesitate” to take action, including suspending or revoking Carvana’s dealer license, if Carvana is found to have violated Illinois law again. rice field.
“Carvana’s acknowledgment indicates that we knew all along that Carvana was violating the law in a way that was harmful to Illinois consumers,” Giannoulias wrote in a press release regarding the settlement. increase. “I will do everything in my power to ensure that the appropriate safeguards are in place to protect the consumer, regardless of how the Illinois consumer purchases a vehicle.”
Carvana also agreed to forfeit a $250,000 bond he previously paid to the state and agreed to step up licensing checks by the state police commissioner. These tests have no impact on Carvana’s customer transactions, a spokeswoman told his NBC 5.
A Carvana spokesperson told NBC 5 that the deal will allow the company to continue operating here in Illinois, including at its Oak Brook auto vending machine tower.
Alan Hoffman, Head of Corporate Affairs at Carvana, said:
As a result of the Secretary of State’s investigation, Carvana’s dealer license settlement agreement does not affect criminal charges filed against one of the company’s executives.
In a separate proceeding in court on the DuPage Circuit, the DuPage County state attorney has filed more than 80 criminal charges against Carvana’s vice president and general counsel, Paul Breaux.
Breaux faces 54 misdemeanor counts, including “improper use of out-of-state registration or ownership,” and 28 misdemeanor counts, including “failure to transfer vehicle ownership,” according to DuPage court records. doing.
The Office of the Secretary of State previously told NBC 5 that misdemeanor charges could carry a maximum sentence of 30 days to six months in prison, court-ordered supervision, and fines ranging from $1,000 to $1,500 per offense. He said that there is
Carvana did not respond to questions from Breaux about NBC 5’s criminal charges.
Breaux is scheduled for a court hearing on February 21.