HARTFORD – State Attorney General William Tong recently announced a $1.5 million settlement with online used car dealer Carvana following hundreds of consumer complaints involving extended delays in title and registration documents, delayed payments to sellers, and deceptive representations of car conditions and features, among other complaints.
The Jan. 15 settlement establishes a $1 million consumer restitution fund, in addition to a $500,000 penalty to be paid to the state, of which $250,000 will be suspended if Carvana complies with all terms of the settlement.
“Today’s settlement puts money back in the pockets of Carvana customers who were wronged,” Tong said on Jan. 15. “This is a company that grew faster than it could manage, compounded by the chaos of the pandemic. Carvana made promises it simply could not keep, and its customers paid the price. We saw hundreds of complaints regarding long delays in title and registration, payment issues, inaccurate vehicle representations and unacceptable customer service.”
The settlement requires Carvana to come into and remain in compliance with Connecticut laws, specifically requiring that the company cannot sell vehicles in Connecticut unless it provides valid title and registration documents at the time of sale. Carvana will further be required to strengthen its customers service systems, including appointing a direct contact for the state to expedite resolution of Connecticut complaints. Carvana cooperated fully with the state’s investigation.
If a person purchased a used vehicle from Carvana after Jan. 1, 2019 and incurred fines, penalties or out of pocket expenses due to a delayed transfer of title and registration, an untimely loan payoff, or if Carvana misrepresented the features, specifications and conditions of your vehicle, that person may be entitled to restitution. Consumers should submit claims in writing to Carvana at connecticutrestitution@carvana.com.
Locally, Carvana has a physical dealership on Post Road in Fairfield.
This settlement has been filed in Hartford Superior Court and is subject to court approval.
“Thank you to the Office of the Attorney General for investigating these complaints and for coming to the aid of those who were wronged,” said Department of Motor Vehicles Commissioner Tony Guerrera. “Purchasing a car is a significant decision, and it’s essential for residents to research the vehicle and the dealership.”
Connecticut launched its investigation into Carvana in January 2022, following hundreds of complaints to the attorney general’s office, Department of Consumer Protection and Better Business Bureau. Many consumer complaints related to extended delays between delivery of vehicles and receipt of Connecticut registration documents.
Carvana claimed it handled the title and registration process, but in many cases the registration process took months to complete. Because of the registration delays, Carvana would sometimes provide consumers with a succession of out-of-state temporary registrations. In other instances, consumers were forced either to park their cars or risk driving unregistered vehicles.
Here are some of the excerpts from Connecticut consumer complaints released by the attorney general’s office:
- “I purchased my Nissan Rogue on 10/31/21 and I’ve been waiting on Carvana for the registration. Submitted all documents and they are saying there was a reporting discrepancy with the mileage on the vehicle. Been pulled over countless times due to the registration. Contacted Carvana and they are not giving assurance as to when this will be taken care of.”
• “I arranged to sell my vehicle a 2012 Honda CR-V to Carvana. The offered sale price was $13,768. A salesperson came to my house and assessed the vehicle where the price was confirmed. An agreement was signed by both parties for the vehicle to be picked up by a Carvana employee/subcontractor via tow truck. A wire transfer was initiated with the banking information I had provided. The wire transfer failed to go through. Carvana cut a check and sent it to my house. I deposited the check at the clerk counter on Feb. 23, 2022. The check failed to clear. I have made several calls to Carvana’s corporate office where they refuse to transfer my call to a supervisor, manager, or accountant.”
