SPRINGFIELD, Ill. (WAND) — Illinois Secretary of State Alexi Giannoulias announced a settlement agreement with the online used car retailer Carvana on Tuesday.
Carvana admitted to violating Illinois law and agreed to abide by new restrictions aimed at protecting consumers.
According to the SoS office, Illinois was the first state to suspend Carvana's license due to practices such as issuing out-of-state temporary registrations and failing to transfer titles in a timely manner.
“The admission by Carvana demonstrates what we knew all along: that Carvana was violating the law in a manner that was harmful to Illinois consumers,” Giannoulias said. “Under my administration, I will do everything to ensure that proper safeguards are in place that protect Illinois consumers regardless of how they purchase a vehicle.”
The agreement also calls for Carvana to: adhere to Illinois law in the future; surrender its $250,000 bond; and allow for pre- and post-licensing Secretary of State Police inspections to ensure it remains in compliance. Most important, the settlement agreement allows the Illinois Secretary of State to summarily suspend and revoke Carvana’s dealership license once again if it fails to comply with either the agreement or the laws.
The retailer will continue selling and buying vehicles in the state of Illinois and through its car vending machine located in Oak Brook under the agreement reached on Tuesday.
Carvana issued the following statement regarding the agreement:
“For the past eight years, we have been an economic engine in the state by providing Illinoisans with an unmatched e-commerce experience that includes great selection, home delivery and a 7-day money back guarantee and today’s agreement with the Secretary of State allows us to move forward in our journey to becoming the largest automotive retailer,” said Alan Hoffman, Carvana Head of Corporate Affairs. “We look forward to working with Secretary Giannoulias to ensure customers continue having access to the best car buying and selling experience possible.”
If a customer has issues with title and registration for a vehicle they purchased, the customer should contact the Illinois Secretary of State Police at 630-693-0551 to file a complaint. The Secretary of State Police will take action to get the title transferred.
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