This information must also be displayed on the window sticker for vehicles sold in stores. CarMax must also present consumers with copies of open recalls and obtain the consumer’s signature on a standalone disclosure document before presenting any other sales paperwork.Īny vehicles sold online, including through or the CarMax mobile app, must also clearly and conspicuously disclose on the first page of the overall description of the vehicle or vehicle history report that the vehicle may be subject to an open recall for safety issues that have not been repaired. In addition to the injunctive relief, the settlement requires CarMax to help consumers access information about open safety recalls by including hyperlinks for vehicles advertised online and QR codes for vehicles advertised in brick-and-mortar locations that link directly to open recalls through the National Highway Traffic Safety Administration VIN Look-up or an acceptable commercial provider with recall information. Under the agreement, CarMax is enjoined from engaging in any act or practice in violation of the consumer protections acts of the states that are party to the settlement, which include Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin. The attorneys general allege that CarMax failed to disclose repairs that were necessary on vehicles with open safety recalls, and it represented that those vehicles were safe despite open recalls for airbags, brakes, fuel pumps, and other critical parts and safety features. The settlement resolves an investigation into CarMax’s advertising and sales practices related to vehicle recalls since 2014. (“CarMax”) and 36 state attorneys general announced a $1 million multistate settlement that will require CarMax to disclose open recalls related to the safety of its used vehicles before consumers purchase them. The office of Massachusetts Attorney General Maura Healey said Monday that Exeter facilitated auto loan originations that it “knew or should have known were unfair and in violation of the state Consumer Protection Law,” while the office of Delaware Attorney General Kathleen Jennings said the lender “knew or should have known” that the loans violated state laws.įinancing is illegal if lenders do not have a basis for believing that customers will be able to repay loans as scheduled, the Massachusetts attorney general office said in a statement.On December 1, 2022, nationwide used car dealer CarMax Auto Superstores, Inc. In a separate cease and desist agreement in Delaware, Exeter agreed to pay $550,000 to affected customers and $50,000 to the state. In Massachusetts, Exeter agreed to pay $4.7 million to harmed borrowers and $825,000 to the state. The settlements in Massachusetts and Delaware resulted from a joint investigation by the states’ attorneys general offices, the offices said in separate statements Monday. Both states say the loans violated state law. Subprime auto lender Exeter Finance has agreed to pay more than $6 million in two states for financing auto loans that the lender knew or should have known were unfair. Exeter Finance Hit With $6 Million Payout
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