Carvana Co. has again come under scrutiny, this time in Illinois, where government officials suspended the online used-vehicle retailers license to sell vehicles.
On May 10, the Illinois Secretary of State Police temporarily blocked Carvana’s dealer license because the company failed to properly transfer titles for vehicles it sold and misused issuing out-of-state temporary registration permits, reported Henry Haupt, an Illinois Secretary of State spokesman.
The Secretary of State's police department opened an investigation over about 90 signed consumer complaints about Carvana. Haupt couldn't provide an exact date as to when Carvana might see the suspension lifted.
Carvana will need to "resolve the issues at hand" before the suspension is lifted.
"Carvana has compliantly operated as a licensed dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of both the facts and the law leading to this action," a Carvana spokesperson said in a statement. "We are actively working with the State to resolve this issue, and they have agreed that we will continue delivering already purchased vehicles. We look forward to resolving this issue with minimal disruption to customers."
Carvana has faced similar scrutiny in other states over titling and registration issue. The company avoided suspension of its dealer license in Florida after it processed outstanding vehicle title applications before a Jan. 31 deadline. In North Carolina, the company lost its license to sell for 180 days over a similar issue.