Michigan Deems Carvana An “Imminent Threat” To The Public, Suspends Their License To Sell Cars


The Michigan Department of State has suspended Carvana’s license in order to protect the public from “imminent harm.”

While Carvana’s license to sell cars has been suspended in numerous states over the years, the latest case involves several alleged violations of Michigan’s Vehicle Code that were discovered after multiple no-title complaints from consumers.

According to the Michigan Department of State, Carvana committed “fraudulent acts” by “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.”

Also Read: Carvana’s Problems Pile Up After Losing License To Sell Cars In Illinois Over Title Issues

If fraud wasn’t bad enough, the company violated the terms of a probation agreement 127 times. Authorities also say Carvana failed to make applications for titles and registrations within 15 days of delivery for 112 customers.

That’s just the icing on the shady used car dealer cake as the state alleges Carvana improperly issued temporary registrations, failed to maintain odometer records, possessed improper odometer disclosure records (which had been signed on behalf of the purchaser), and failed to have records available for inspection during “reasonable or established business hours.”

Given the numerous violations, Michigan says Carvana is an “imminent threat” to the “health, safety or welfare of the public, requiring emergency action.”

The Michigan Department of State said problems initially arose in February of 2021, when an inspection found multiple issues of non-compliance. The company agreed to address the violations and entered into an 18-month probation agreement in exchange for a $2,500 (£2,260 / €2,576) fine and the admission of several violations.

Carvana allegedly violated the probation agreement and this resulted in a second meeting, where Carvana representatives signed a six-month probation extension. They also paid a $5,000 (£4,520 / €5,152) fine and admitted to several more violations.

Shortly thereafter, Carvana customers started to complain about not getting their titles. This resulted in the investigation that ultimately lead to their license being suspended.

The state isn’t messing around this time as a press release noted the “department will seek revocation of the dealer’s license at an administrative hearing.” The Michigan Department of State is also encouraging consumers with complaints against Carvana to come forward and contact the Office of Investigative Services.

H/T NBC 25


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