Texas sues Vroom for alleged title delays, automobile misrepresentation


The Texas legal professional basic’s workplace is suing Vroom, an online used-vehicle retailer, for allegedly misrepresenting and failing to inform clients about holdups in transferring automobile titles and acquiring registrations.

The deceptive trade practices lawsuit, filed this week by Texas Lawyer Basic Ken Paxton, claims Vroom “burdened hundreds of shoppers” by not making them conscious of doc processing hiccups.

The lawsuit additionally alleges Vroom misconstrued the historical past, situation and finance phrases of autos it bought. Vroom can be accused of mismanaging its pandemic-era development to some extent that firm procedures have develop into ineffective, in keeping with the swimsuit.

Within the final three years, customers “filed practically 5,000 complaints with the Higher Enterprise Bureau and Workplace of the Lawyer Basic of Texas” over these alleged points, in keeping with the lawsuit. About 4,000 of these complaints had been made within the final 12 months, it mentioned.

Vroom didn’t touch upon the particular allegations, however mentioned it has labored with the Texas legal professional basic’s workplace to deal with points raised within the lawsuit.

“We’re disenchanted the Lawyer Basic felt the necessity to take this motion however intend to proceed addressing these issues and enhancing our operations to make sure a hassle-free expertise for our clients,” the corporate mentioned in an announcement.

The lawsuit particularly claims Vroom is “chopping corners” and “turning over their customer-sourced autos so rapidly that they’re reselling autos” earlier than they acquire correct titles.

A number of buyer accounts specified by the lawsuit describe situations by which Vroom didn’t register modifications in possession in a well timed method, leaving them with expired momentary tags and no proof they personal the automobile they purchased.

The lawsuit additionally cites situations by which individuals purchased a automobile from Vroom, solely to search out it fraught with mechanical points.

One Texas client reported his delivered automobile had a number of issues: a broken tire and rim, a cracked spoiler and windshield, lacking bolts and proof of a earlier accident, in keeping with the lawsuit. He spent “a number of hours on the cellphone for over a month” trying to get a refund and his trade-in again from Vroom, the lawsuit alleges.

Texas desires Vroom to pay as much as $10,000 for every alleged violation of the state’s Deceptive Trade Practices Act, in keeping with the lawsuit. The state desires the corporate to pay extra — $250,000 per violation — if it concerned a buyer older than 65.


Vroom has confronted scrutiny in different states for the way it handles title transfers.

In January, the Florida Division of Freeway Security and Motor Autos filed an administrative complaint towards Vroom, citing 47 circumstances by which the corporate allegedly did not ship titles to customers in 30 days.

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