Follow us on Twitter and Facebook for the latest Class Action Settlement News!
CarMax Accused of Violating Class Action Settlement
By Mike Holter
A Maryland judge is being asked to find CarMax in contempt of court for failing to abide by the terms of a 2008 class action lawsuit settlement, which required the automotive retailer to provide clear warnings to consumers when a used vehicle offered for sale was once a rental car.
“CarMax still does not disclose its vehicles’ prior use as short-term rental vehicles,” states the filing made last month by lawyers for the Plaintiffs in the CarMax class action lawsuit.
The 2008 CarMax class action settlement covers only Maryland. Under Maryland law, “vehicles formerly used for a purpose other than a consumer good shall be clearly and conspicuously identified as to their former use,” including rental vehicles.
According to the recent filing, the terms of the 2008 CarMax settlement have been violated because disclosures about a rental history are “camouflaged and deceptive” and are found on the buyer’s order, “not on the legally binding financing agreement.”
The filing also says CarMax uses “gratuitous and ambiguous terms” to distract buyers from realizing they’re purchasing a rental car, such as lumping words like “loaner, rental executive vehicle” or “fleet, rental, business use, executive vehicle” together.
A spokeswoman for CarMax denied the allegations, saying in a statement that “CarMax provides information about vehicle history, including prior rental history, to its customers nationwide. CarMax is in compliance with Maryland law.”
She said the company uses numerous disclosures to inform buyers of a former rental vehicle, including placing a note on the window sticker “which includes the word ‘rental’ where applicable.”
CarMax will file a motion asking the court to dismiss the petition, she said.
The petition is asking the judge to make CarMax immediately comply with the 2008 class action settlement; to appoint an official to monitor CarMax’s compliance with the settlement for five years; and to order compensation for consumers who bought vehicles without being given the proper disclosures.
Updated December 29th, 2011
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
Top Class Actions Legal Statement
4 thoughts onCarMax Accused of Violating Class Action Settlement
Car maxx did not tell me my car was used as a rental car previously
My son and i bought a car from carmax in 2017 a 2009 vlkwagon in 4 weeks the engine goes completetly stop running the had my car for two months which they lied and said it was 35 day the car has been in and out the shop since april 2017 now the engine is blown with matiance every month and we still have a loan for 11,800 in two and 1/2 years and the car iss done…someone help
I bought a Lexus suv in 2014. When we were there they told use everything was perfect and bought the 2yr old car in what we thought was perfect condition. In 2016 when we tried to sale the car back, suddenly there is a car fax report of an accident and now it looks like we r trying to sale an imperfect car in which they r low balling us. When we told this all of this all of the lies are coming out. We had no idea, we didn’t get the info in time, etc, is there anything I can do on this situation?
Bought a used BMW X6 from CarMax in Jacksonville, Fl. Supposed to be a certified used, also bought an extended warranty. Every time something went wrong with the car, I took it in. But they always told me it was not covered by the warranty. Kept the oil change and everything that needed to be done to it. I had to pay out over $2,000.00 in repairs that I had to pay. I was lied to all the around.