Carvana Co. has moved into the nation’s largest car market.
The company recently launched operations in Los Angeles. This is Carvana’s 37th market.
Less than five years after selling and delivering its first car in Atlanta, Carvana has rapidly expanded its local market presence.
Carvana Co. has moved into the nation’s largest car market.
- Secretary of State Tells Dealer Group “You’re the Good Guys” in Spotlight
Michigan State Police and the Secretary of the State continue to go after crooked automobile dealers and repair shops with the support of industry groups.
Michigan Secretary of State Ruth Johnson recently updated The Michigan Independent Automobile Dealers Association on the work during an industry event.
He praised the Michigan IADA dealers for being examples of how auto dealerships should operate.
“You’re the good guys,” she said to Michigan IADA members. “You’re the guys who get a bad reputation when you have other people out there cheating and doing fraudulent things.”
Johnson said that issues with washed titles, unlicensed dealers and insurance fraud became too much of a problem so she created thee Office of Investigative Services in 2015. She tapped Darryl Hill, a 26-year veteran from the Michigan State Police, to lead the unit.
“We told him, ‘Go after the bad guys,’” Johnson said. “Because how can good guys ever compete with bad guys?”
Since then, the police have obtained nearly 350 warrants against unlicensed repair shops and fraudulent dealers.
The unit has shut down 62 illegitimate car dealerships and 48 repair shops.
For example, a Genesee County dealer was arrested for allegedly forging a police officer’s signature on vehicle inspection documents. In another case, A Sylvan Lake dealer was arrested on charges of forging more than 300 U.S. Customs and Border Protection documents.
Two Alpena dealerships were suspended for failing to provide records and maintaining properly assigned titles. They also had VIN numbers concealed or removed.
Johnson urged dealers to contact the Secretary of State if they are aware of any fraud going on.
Other issues are on the table as well.
“Fighting back against title fraud is at the top of my list,” Johnson said. “The crime costs $11. 3 billion every year in the United States.”
Johnson said the state is using both technology and legislation to fight back. A new system, called Customer and Automotive Records System (CARS), combines Michigan’s millions of driver and vehicle records into one system.
An electronic lien and title system is also in the works.
“I know how hard it hits people when someone sells a car fraudulently with a washed title,” she said.
Johnson said drivers with no car insurance remain a big problem.
A study showed that 39 percent of drivers in the state are driving without valid insurance. One out of 10 is likely to have fraudulent insurance.
“We had some guy out in the parking lot once with his laptop and a printer,” Johnson said. “People were paying him through the window and he was printing sheets off saying they were insured.
“If it sounds too good to be true, then it is.”
Johnson said the state is fighting back with insurance information it shares with law enforcement and shutting down bogus insurance providers.
“Since 2015, we’ve reviewed 1.3 million policies that were unable to be verified,” she said.
- CFPB Fines Xerox for Misreporting Auto Credit Performance in News Now
The Consumer Financial Protection Bureau (CFPB) took action against Xerox Business Services, LLC, now called Conduent Business Services, for software errors that led to incorrect consumer information about more than 1 million borrowers being sent to credit reporting agencies.
The company also failed to notify all of its auto finance clients about known flaws in its software that led to the errors. The consent order requires Xerox to pay a $1.1 million civil penalty, explain its mistakes to its finance clients, and fix its faulty software.
Xerox Business Services operated and customized a third-party software application for five auto creditors. The software automatically generated and transmitted information about borrowers’ auto loans to consumer reporting agencies. Lenders use information furnished to the consumer reporting agencies when considering whether to issue a loan and on what terms, so it is essential the information is accurate.
Widespread defects in the finance-servicing software that Xerox used led creditors to report inaccurate information about consumers’ performance on their contracts. In 2016, its reports for more than one million of the auto creditors’ 6.4 million customer accounts had one or more errors.
Xerox had acquired the rights to this software from its creator, an independent software developer. When creditors asked for certain features, Xerox would modify the software’s source code.
Between 2004 and 2010, one modification was supposed to enable three of Xerox’s clients to provide consumer data in the Metro 2 Format. Metro 2 is the standard industry format used for furnishing this information in a uniform way to credit reporting agencies.
However, Xerox’s modifications were based on a flawed, unreleased version of Metro 2 source code that led to the reporting of incorrect consumer information. This violated the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- CarMax Expands in Northwest in News Now
CarMax Inc. celebrated the grand opening of the company’s third store in the Seattle market.
The store is located at 3751 E. Valley Rd. in Renton and has the capacity to stock approximately 300 used vehicles.
In celebration of the Renton store grand opening, CarMax and The CarMax Foundation awarded $15,000 in donations and grants to the Boys & Girls Clubs of King County. Support for this organization came at the recommendation of the Renton CarMax associates.
CarMax will also be donating an Imagination Playground valued at more than $15,000 to the South Park Community Center, through its partnership with Kaboom to make play more accessible to children and families.