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MDOS then received several more no-title complaints from consumers and conducted the investigation that led to the current violations and license suspension.Ĭarvana is facing similar issues in Illinois.Ĭonsumers who have a complaint against Carvana, or who have purchased a vehicle from that dealer and have had problems obtaining the title, can call the Office of Investigative Services automotive complaint line at (517) 335-1410.

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7, 2022, Carvana representatives signed a six-month probation extension with a $5,000 fine and admission of several more code violations. All dealership employees that handled paperwork were to attend an MDOS dealer training program. On May 7, 2021, Carvana entered an 18-month probation agreement with a $2,500 fine and admission of several violations of the state vehicle code. In the meantime, Carvana will continue selling cars to Michigan customers.'Īccording to the state, the issues go back to at least February 2021, when MDOS regulatory staff conducted a general compliance inspection and assessed multiple notices of noncompliance. Carvana is ready and willing to discuss a swift resolution with the State, as we've already solved their concerns.

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Over 98% of our Michigan customers receive their registration in a timely manner and the State's suspension, which came without any notice and in illegal violation of Carvana's due process, is based on isolated incidents representing 1% of our Michigan sales. In an emailed statement to Crain's, a Carvana spokesperson said: 'The State's action represents another example of gross regulatory overreach that illegally harms both Carvana and Michigan residents. 'These continued violations create an ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action,' MDOS said in the release, adding that it will seek to revoke the dealer's license at an administrative hearing.

Violating terms of a probation agreement 127 times.

Possessing improper odometer disclosure records on which the odometer disclosure had been signed on behalf of the purchaser.

Failing to have records available for inspection during reasonable or established business hours.

Improperly issuing temporary registrations.

Committing fraudulent acts in connection with selling or otherwise dealing in vehicles where Carvana employees admitted to destroying title applications and all applicable documents pertaining to the sale of three vehicles that were sold to customers and Carvana took the vehicles back.

Failing to make application for title and registration within 15 days of delivery for 112 customers since agreeing to an earlier probation extension.

The violations were discovered during an investigation of multiple no-title complaints from consumers, the state said in a news release. Breaux and located at 26890 Adell Center Drive in Novi, has been summarily suspended for several alleged violations of the Michigan Vehicle Code. The Michigan Department of State on Friday said that the license for Carvana LLC, owned by Carvana's general counsel Paul W.

An Oakland County vehicle dealer known for its 'car vending machine' delivery has had its license suspended by the state for 'imminent harm' to the public.

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