Carvana Reaches $1.5M Settlement Over CT Complaints

Carvana Reaches $1.5M Settlement Over CT Complaints

Introduction

An Arizona-based online used car dealer, Carvana, has agreed to pay over $1 million to settle customer complaints in Connecticut.

Backdrop of the settlement

The settlement follows a three-year investigation into the company, which faced numerous consumer complaints regarding delays in registration, payments, and vehicle deliveries. Many of these issues arose during the pandemic when demand for used cars surged, leading to rapid growth for Carvana.

Settlement amount

Connecticut Attorney General announced that $1 million from the settlement will be used to establish a consumer restitution fund. Additionally, Carvana will pay a $500,000 penalty to the state, with the possibility of reducing it by half if the company fully complies with the settlement terms.

AG's statement

“This settlement ensures that Carvana adheres to all Connecticut laws,” the AG stated. “We will closely monitor their compliance to guarantee they treat Connecticut consumers fairly moving forward.”

Carvana's response

Carvana responded by emphasizing its commitment to customer satisfaction, stating, “We have always worked hard to provide the best experience, including addressing issues when they arise. We are happy to continue assisting Connecticut customers with past concerns, such as pandemic-era paperwork delays.”

The settlement aims to ensure that Carvana improves its operations and prevents similar issues in the future.