(The Center Square) – Online used car dealer Carvana has admitted to violating Illinois law and has agreed to follow new consumer protection restrictions.
The agreement allows Carvana to continue conducting business in Illinois and ends a legal dispute that began last May when the Illinois Secretary of State suspended its business license.
“Carvana had been illegally issuing out-of-state registration permits to Illinois vehicle owners and failed to transfer owner titles in a timely manner,” Illinois Secretary of State Alexi Guiannoulias said. Illinois requires vehicle owners to receive their titles within 20 days.
As part of the agreement, Carvana forfeited a $250,000 bond and agreed to additional licensing inspections by the Secretary of State Police. 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.
Secretary of State officials said the funds may be used to compensate motorists who were ticketed for not having valid registrations. They are encouraged to contact the secretary of state’s office for more information.
Carvana delivers cars directly to customers and is known for its car “vending machines” where buyers can retrieve vehicles.
Carvana has struggled of late. The company terminated about 4,000 employees last year and its stock value has plunged about 90% as the demand for used cars has fallen.
“Under my administration, I will do everything to ensure that proper safeguards are in place to protect Illinois consumers regardless of how they purchase a vehicle,” Giannoulias said.