Carvana banned from Illinois for second time

SPRINGFIELD — Online car dealer Carvana has been barred from conducting business in Illinois for a second time. The ban is over continued issues with consumers not receiving vehicle registrations and titles.

The office of Secretary of State Jesse White said the company’s dealer license was suspended Monday due to car buyers not receiving the titles for their vehicle. A vehicle’s title is essential to prove ownership of a vehicle. Otherwise, the car cannot be driven or sold in the absence of a title.

Spokesman Henry Haupt told Fox 32 Chicago that Carvana unlawfully issued consumers temporary vehicle registrations from other states. Furthermore, these had been done without the use of a licensed remitter.

Carvana’s business practices have been under fire via an investigation by the Secretary of State’s office since February. A large number of consumer complaints triggered the investigation.

Illinois suspended Carvana’s business operations on May 10. However, the restriction was lifted on May 26 as a result of lengthy negotiations. This would allow the online dealer to continue sales in the state under stricter guidelines

The suspension was reinstated following further business practices complaints that were “in a manner that violates Illinois law.”

Ban won’t prevent Carvana from delivering already purchased vehicles

The dealer will still be able to deliver previously purchased vehicles in the state, according to Haupt. The prohibition keeps the company from making any new car sales.

The suspension remains in place until the company resolves its existing issues.

Buyers encountering issues with their vehicle’s title and registration after buying from Carvana should file a complaint with the Secretary of State Police. Complaints relating to the violation of lemon laws may be referred to the Secretary of State Police and Attorney General Kwame Raoul.

“My top commitment is protecting the interests and well-being of Illinois consumers,” Illinois Secretary of State Jesse White said. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to do everything we can to ensure that every customer is properly served.”

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