SPRINGFIELD, Illinois (WAND) — Illinois Secretary of State Alexi Giannurias announced a settlement agreement with online used-car retailer Carvana on Tuesday.
Carvana has admitted to violating Illinois law and has agreed to comply with new regulations aimed at consumer protection.
Illinois was the first state to suspend Carvana’s license for practices such as issuing temporary registrations outside the state and failing to transfer titles in a timely manner, according to the SoS office.
“Carvana’s approval shows what we knew all along: Carvana was violating the law in a way that was harmful to Illinois consumers,” Giannoulias said. “Under my administration, I will do everything in my power to ensure that appropriate safety measures are in place regardless of how Illinois consumers purchase their vehicles.”
The agreement also requires Carvana to: You give up your $250,000 bond. It also permits pre- and post-licensure inspections by state police commissioners to ensure compliance is maintained. Most importantly, the settlement agreement allows the Illinois Secretary of State to re-suspend and revoke his Carvana dealer license if Carvana violates the agreement or the law.
Retailers will continue to sell and buy vehicles through auto vending machines in Illinois and Oak Brook under the agreement reached on Tuesday.
Carvana issued the following statement regarding the agreement:
“For the past eight years, we have been the economic engine of our state by providing Illinoisans with an unparalleled e-commerce experience, including superior selection, express delivery, and a 7-day money-back guarantee, and we are the nation’s leader today. In agreement with the Commissioner, Alan Hoffman, Carvana’s head of corporate affairs, said: “We look forward to working with Commissioner Giannurias to continue providing our customers with the best possible car buying experience. We look forward to making it available.”
If there is a problem with the ownership and registration of the vehicle purchased by the customer, the customer should contact the Illinois Police Commissioner at 630-693-0551 to file a complaint. The State Police Commissioner will take action to cede the title.
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