Carvana License Suspended Again In 2 Months In Illinois

(RTTNews) - Carvana Co. (CVNA), which is known for its brightly lit "car vending machines", had its dealer's license in Illinois suspended for the second time in two months on Monday after the company failed to get buyers their titles, according to the Illinois Secretary of State's office.

Spokesman Henry Haupt also said Carvana unlawfully issued buyers temporary vehicle registrations from another state and issued them without going through a licensed remitter.

The Secretary of State's office initially began investigating the Phoenix, Arizona-based company's business practices in February after receiving scores of complaints from customers.

The state had issued a suspension order against Carvana on May 10, but after lengthy negotiations, it lifted the suspension on May 26 allowing the company to resume conducting business in Illinois under strict guidelines.

The Secretary of State's office said Monday it re-instated the suspension after the company "continued to conduct business in a manner that violates Illinois law." During the suspension, Carvana will still be allowed to deliver vehicles that have already been purchased, but it will not be allowed to sell any new vehicles, Haupt said.

The suspension will remain in place until the company resolves all the issues, he said.

Commenting on the developments, Illinois Secretary of State Jesse White said, "My top commitment is protecting the interests and well-being of Illinois consumers. We will continue to do everything we can to ensure that every customer is properly served."