CarMax, Busted!

CarMax was ordered to pay $1.1 million in monetary damages for failing to submit documents to the DMV to transfer registration for used vehicles to new owners in a timely manner. This situation left thousands of used car buyers without registration to vehicles they purchased.

Source: Yahoo Finance

KEY POINTS

CarMax will pay $1.1 million to resolve a civil lawsuit brought by the Riverside County District Attorney’s Office in California.
Prosecutors alleged that CarMax dealerships did not always submit vehicle title and registration paperwork to the DMV within the required 30-day period after sale.
The payment includes $900,000 in civil penalties, $150,000 for investigative costs, and $50,000 to support consumer protection efforts in California.
As part of the settlement, CarMax agreed to business practice changes, including holding sales when it lacks clear title, completing smog checks or VIN verifications before sale, maintaining adequate staffing for ownership transfers, and assigning a senior-level manager to oversee compliance.
CarMax cooperated with the investigation and has begun addressing the issues identified, while resolving the case without admitting wrongdoing.

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CarMax Ordered to Pay $1.1M in Monetary Damages

CarMax, Busted!