Attorney General William Tong announced a $1.5 million settlement with Carvana, an online used car dealer, after receiving hundreds of complaints from Connecticut consumers. The issues included extended delays in receiving title and registration documents, late payments to sellers, and misrepresentations about vehicle conditions.
As part of the settlement, Carvana will establish a $1 million consumer restitution fund and pay a $500,000 penalty to the state. Half of this penalty will be suspended if Carvana complies with all settlement terms. The company is now required to adhere to Connecticut laws, ensuring valid title and registration documents are provided at the time of sale. Additionally, Carvana must improve its customer service systems and designate a direct contact to resolve Connecticut complaints.
Consumers who purchased vehicles from Carvana after January 1, 2019, and faced delays or financial losses due to title, registration, or loan payoff issues may be eligible for restitution. Claims can be submitted via email to connecticutrestitution@carvana.com. The settlement, which is subject to court approval, also addresses complaints about inaccurate vehicle descriptions and unresponsive customer service.
Attorney General Tong emphasized the significance of the settlement in holding Carvana accountable and protecting consumers. Department of Consumer Protection Commissioner Bryan T. Cafferelli and Department of Motor Vehicles Commissioner Tony Guerrera echoed the importance of ensuring businesses meet their obligations to customers, particularly for significant purchases like vehicles.
The investigation, launched in January 2022, revealed that Carvana’s rapid growth during the pandemic exacerbated delays in titling and registration. Many consumers reported waiting months to receive their documents, while others dealt with repeated out-of-state temporary registrations or risked driving unregistered vehicles. Additional complaints highlighted delays in payments for vehicles sold to Carvana and discrepancies between advertised and actual vehicle conditions.
The settlement reflects a step forward in addressing these issues and ensuring compliance with state laws moving forward.