AUSTIN, Tex. — A used car dealer that has drawn dozens of complaints by customers in Indiana, is now faced with a deceptive trade practices lawsuit filed by the Texas Attorney General.
The lawsuit filed by Texas AG Ken Paxton against Vroom LLC and Vroom Inc. claimed the used car dealer “misrepresented and failed to disclose significant delays in transferring clear title and obtaining vehicle registrations, burdening thousands of consumers.”
These complaints are similar to the ones that CBS4 previously reported on in an investigation into problems Indiana customers had with the company after buying a vehicle through Vroom.
Over the last three years, Paxton said consumers filed more than 5,000 complaints with both the Better Business Bureau and Texas Attorney General’s office against the company.
During a CBS4 Investigation, neither the Indiana Attorney General nor the Secretary of State confirmed if an investigation into Vroom was underway by their offices, despite receiving several complaints.
Scott Barnhart, the director of Consumer Protection at the Attorney General’s Office did note that their office had seen a marked increase in complaints.
The Indiana Secretary of State’s Office pointed to its records, which showed the state revoked Vroom’s dealership license in 2018.
Vroom LLC and Vroom Inc. sold cars to Texans under the name of Texas Direct Auto.
The Texas lawsuit also claimed Vroom didn’t disclose vehicle history, condition and terms of financing, which violates Texas Deceptive Trade Practices Consumer Protection Act.
One example listed in the lawsuit, cited a Texas customer who upon delivery of a purchased vehicle noticed a strong odor inside described as “similar to being near a boat.”
When taken to a mechanic for inspection, several areas of internal rust were found and said to only be caused if sitting in water for an extended amount of time. Other conditions were found that indicated flood damage to the car.
The lawsuit also stated that customers had compared their purchased cars from Vroom to “bricks,” or “driveway ornaments” when it became unlawful for them to operate their vehicles.
The announcement of the lawsuit also said “Vroom has not managed its growth effectively, leading to inadequate systems and procedures that have harmed Texas consumers.”
The lawsuit filed by the Texas Attorney General can be read and downloaded below: