The attorney general's office said it has reached a $1.5 million settlement with Carvana, the online used car dealer, and customers could be eligible for restitution.
Attorney General William Tong said the settlement, which is subject to approval in Hartford Superior Court, comes after hundreds of consumer complaints about extended delays in title and registration documents, delayed payments to sellers, and “deceptive representations of car conditions and features,” among other complaints.
Connecticut launched its investigation into Carvana in January 2022.
The settlement establishes a $1 million consumer restitution fund and 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, according to the attorney general’s office.
Get top local stories in Connecticut delivered to you every morning. Sign up for NBC Connecticut's News Headlines newsletter.
They said customers who bought a used vehicle from Carvana after Jan. 1, 2019 and incurred fines, penalties or out-of-pocket expenses because of a delayed transfer of title and registration, an untimely loan payoff or if Carvana misrepresented the features, specifications and conditions of your vehicle, you might be entitled to restitution.
Consumers should submit claims in writing to Carvana at connecticutrestitution@carvana.com.
“We have always gone to great lengths to deliver the best possible customer experience, including proactively making it right when we fall short, and we are happy to continue to do so for Connecticut customers with historical concerns like pandemic-era paperwork slowdowns,” a Carvana spokesperson said in a statement.
Local
The settlement requires Carvana to comply with Connecticut laws, specifically requiring that it cannot sell vehicles in Connecticut unless it provides valid title and registration documents at the time of sale and Carvana will also be required to strengthen its customers service systems, including appointing a direct contact for the State to expedite resolution of Connecticut complaints, according to the attorney general’s office.
They said Carvana cooperated fully with the state’s investigation.
“Today’s settlement puts money back in the pockets of Carvana customers who were wronged. 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. In addition to restitution and penalties, this settlement requires Carvana to come into compliance with all Connecticut laws. We’re going to be watching closely to ensure they do right by Connecticut customers going forward,” Tong said in a statement.