CarMax Dealerships Settle Consumer Protection Lawsuit For $1.1 Million: RivCo DA
CarMax will pay $1.1 million to settle a lawsuit alleging failure to promptly transfer vehicle ownership to buyers in California.Summary
A network of CarMax dealerships has settled a civil lawsuit with the Riverside County District Attorney's Office for $1.1 million. The lawsuit alleged that CarMax violated state law by failing to submit required documentation for timely vehicle registration and ownership transfers. Specifically, dealers are required to submit applications to the Department of Motor Vehicles (DMV) within 30 days of sale. The settlement includes $900,000 in civil penalties, $150,000 for investigative costs, and $50,000 for consumer protection. CarMax has agreed to improve its practices, including placing holds on vehicles without clear titles, completing smog checks and VIN verifications before sale, maintaining sufficient staffing, and designating a compliance manager. CarMax stated the issues were partly due to pandemic-related disruptions and that they have since strengthened their systems.
(Source：Patch)