MOTORISTS can score cash from a $1 million consumer settlement fund after a disgraced dealership was ordered to pay out.
An online car seller has agreed to the payment – with ripped-off buyers required to send in their receipt.
A settlement has been agreed with Carvana for a $1 million consumer restitution fund and the payment of a $500,000 penalty to the state[/caption]
Online car dealer Carvana has been financially penalized after hundreds of complaints in Connecticut[/caption]
William Tong, the Attorney General of Connecticut, announced the settlement on Tuesday, saying it followed “hundreds of consumer complaints.”
If you bought a used vehicle from Carvana after January 1, 2019, you may be entitled to restitution, he added in his statement.
The entire settlement totals $1.5 million – but $500,000 of that amount is to be paid to the state.
It came after motorist complaints were lodged over “extended delays in title and registration documents,” the statement said.
Drivers were also unhappy about alleged “delayed payments to sellers, and deceptive representations of car conditions and features, among other complaints,” it added.
The settlement has been filed in Hartford Superior Court and is subject to its approval.
Tong hailed the settlement for “putting money back in the pockets of Carvana customers who were wronged.”
He also partially blamed the firm’s poor customer service on problems associated with the Covid pandemic.
Tong said: “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.”
He added that along with restitution and penalties, “this settlement requires Carvana to come into compliance with all Connecticut laws.”
Tong warned: “We’re going to be watching closely to ensure they do right by Connecticut customers going forward.”
How to apply for money from the Carvana settlement
If you bought a used vehicle from online dealer Carvana after January 1, 2019, you may be entitled to restitution if:
- You incurred fines or penalties
- You were hit with out of pocket expenses due to a delayed transfer of title and registration
- You incurred an untimely loan payoff
- Carvana misrepresented the features, specifications and conditions of your vehicle
Affected customers should submit claims in writing to Carvana at [email protected]
Connecticut launched its probe into Carvana in January 2022.
This followed hundreds of complaints to the Office of the Attorney General, Department of Consumer Protection and Better Business Bureau.
Many consumer complaints were based on extended delays between delivery of vehicles and receipt of Connecticut registration documents.
The A-G’s office said in its statement: “Carvana represented that 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.”
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Firms tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
There were also consumer complaints about delays in receiving payments or loan payoffs for vehicles Carvana bought or took in trade.
This action resulted in consumers being forced to continue making payments on vehicles – despite no longer possessing them.
Some customers complained about third-party warranty products offered by or through the online retailer.
The statement further alleged: “And some asserted that their vehicles did not match the advertised condition or features.
“Almost all of the complaints stated that consumers had difficulty getting Carvana to respond to problems.”
Connecticut consumer complaints against Carvana
There were hundreds of complaints lodged against the online dealer
According to the Attorney-General’s statement Connecticut drivers made various allegations against Carvana.
One affected car buyer claimed: “Carvana sold me a used vehicle with undisclosed issue, body damage and replaced body parts.
“Carvana was notified within 7 days of the issues and refuses to take the car back.”
Another alleged: “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.”
Carvana cooperated fully with the state’s investigation, the statement said.
The firm has been told it cannot sell vehicles in Connecticut unless it provides valid title and registration documents at the time of sale.
It must also beef up its customer complaints resolution service.
