NOVI (WWJ) - While their slogan promises to 'drive you happy," officials with the State of Michigan accuse the Carvana vending machine of falling short on happiness and delivering big on violations.
Authorities with the Michigan Department of State announced of Friday that they had suspended the license of the Oakland County vehicle dealer located west of Novi Road and south of I-696 for "imminent harm to the public."
"Carvana LLC, owned by Paul W. Breaux and located at 26890 Adell Center Drive in Novi, has been summarily suspended for several alleged violations of the Michigan Vehicle Code, which were discovered during an investigation by MDOS regulatory staff of multiple no-title complaints from consumers," officials said in a statement.
As stated in the release, officials alleged Carvana carried out the following violations:
• failing to make application for title and registration within 15 days of delivery for 112 customers since agreeing to an earlier probation extension
• committing fraudulent acts in connection with 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
• failing to maintain odometer records
• improperly issuing temporary registrations
• failing to have records available for inspection during reasonable or established business hours
• possessing improper odometer disclosure records on which the odometer disclosure had been signed on behalf of the purchaser
• violating terms of a probation agreement 127 times
State officials said the continued violations pose an "ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action."
The violations began back in Feb. 2021, authorities stated, after MDOS regulatory staff began a general compliance inspection and "assessed multiple notices of non-compliance."
At a general conference in March of the same year, MDOS and Carvana representatives addressed the violations and Carvana entered an 18-month probation agreement with a $2,500 administrative fine and admission of several violations of the Code on May 7, 2021, officials said.
One stipulation ordered by MDOS officials was that all dealership employees that handled paperwork would attend the department’s dealer training program.
MDOS held a second conference on Jan. 11, 2022 with Carvana representatives after the dealership was found to have violated the probation agreement. Over the following month, state officials continued to work with the vehicle dealer on their compliance and a six-month probation agreement was signed on Feb. 7 with a $5,000 administrative fine and admission of several more violations of the Code.
Despite this, officials said they still received multiple complaints from customers.
"Following the signing of the probation extension, MDOS received several no-title complaints from consumers and conducted the investigation that led to the current violations and suspension," state authorities explained. "The department will seek revocation of the dealer's license at an administrative hearing."
The department encouraged customers with complaints to continue to contact the department with their experiences.
"Consumers who have a complaint against Carvana, or who have purchased a vehicle from that dealer and have had problems obtaining the title, are encouraged to call the Office of Investigative Services automotive complaint line at 517-335-1410."