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Carvana, Illinois regulators in discussions’ about retailer’s capability to sell in hawaii

Representatives for Carvana Co. and the Illinois secretary of state met Wednesday in Illinois court for a scheduled hearing the most recent part of a legal challenge that’s unfolded on the online retailer’s license to market used vehicles in hawaii.

The problem arose in early May, once the secretary of state suspended Carvana’s dealer license. The regulatory agency said its police unit had investigated several consumer complaints and discovered a pattern of Carvana failing woefully to properly transfer titles for vehicles it sold and misusing the issuing of out-of-state temporary registration permits. The agency stayed the suspension order May 26, saying Carvana could sell vehicles provided that it followed “strict guidelines.”

When additional consumer complaints emerged, the secretary of state again attemptedto suspend the web retailer’s license in July, of which point Carvana filed for injunctive relief. That request was granted July 29 by Judge Bonnie Wheaton of the 18th Judicial Circuit Court in DuPage County, west of Chicago, temporarily nixing the agency’s capability to suspend or revoke Carvana’s license. A hearing, originally scheduled for the finish of August, was moved to Wednesday.

The agency remains “in discussions” with Carvana on the status of its license and vehicle titling and registration problems following a hearing, Dave Druker, spokesman for the secretary of state, told Automotive News. Another public hearing is scheduled for Dec. 12, he added.

“The continuance of the week’s proceedings reflects Carvana’s consistent willingness to negotiate an answer to the state’s concerns, and provides Carvana’s customers confidence that Carvana’s platform comes in Illinois,” Carvana said in a statement to Automotive News.

“We appreciate the surge of support from our Illinois customers while we use hawaii on a long-term resolution. We have been confident we shall successfully defend the proper of Illinois residents to keep to get and sell cars online through our industry-leading e-commerce platform.”

Carvana is permitted to sell used vehicles in Illinois under some restrictions exactly the same ones it had been subject to beneath the May 26 stay order, Druker said.

Carvana can’t handle license plates or temporary registration permits; the retailer must proceed through an authorized Illinois remitter to obtain those to the agency. The business will need to have a vehicle’s title readily available when it would go to a remitter, Druker said. Remitters are third-party entities licensed to process title transactions.

“The restrictions they need to work under now [are] what we originally asked for,” Druker told Automotive News. “That hasn’t changed.”

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