Consumer complaint received 2026-03-10 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Lender trying to repossess or disable the vehicle
Company: Carvana Group, LLC
State: CA

Complaint narrative:
On or about XX/XX/year>, I purchased a vehicle from Carvana and financed the purchase through XXXX. The vehicle was advertised by Carvana as certified and having completed a XXXX inspection, and it was also represented as being covered by Carvanas XXXX XXXX warranty. As part of the transaction, I made a down payment of approximately {$3800.00} that was processed electronically through XXXX. Carvana later claimed that this payment was reversed through a chargeback. However, my bank has confirmed that no refund or chargeback was ever returned to my account. I have repeatedly asked Carvana and XXXX for documentation proving that the funds were actually reversed, but they have refused to provide payment processor records showing that the money was returned to me. Approximately XXXX months after the purchase, on or about XX/XX/year>, the vehicle experienced a major transmission failure and would no longer shift into gear. When the vehicle was inspected, the transmission fluid was described as burnt, and there were also electrical defects affecting the vehicles operation. These serious issues occurred shortly after purchase even though the vehicle had been advertised as inspected and certified. I reported the problem to Carvana and the vehicle was taken to a repair facility. The vehicle remained in the repair shop for more than 90 days, leaving me without transportation. I had originally sold my previous vehicle in order to obtain the down payment to purchase this car, so I had no reliable way to get to work while the vehicle was inoperable. Carvana told me they would allow me to swap the vehicle, but only if I paid another down payment of approximately {$3800.00}. Carvana claims they do not have my original down payment because of the alleged chargeback, but they have not produced documentation showing the payment was actually reversed. Because of this, Carvana is refusing to swap a vehicle that they sold as certified and inspected unless I pay the down payment again. Carvana also previously issued me a refund check of approximately {$490.00} related to a different vehicle that was more expensive. However, the issue of the missing down payment was not raised until about XXXX days after I reported that the transmission would not shift into gear. While the vehicle was in the repair shop for over 90 days, my lender continued to treat the account as delinquent, and I have been informed that the loan has been charged off due to missed payments, even though the vehicle was unusable for months. In summary : The vehicle was marketed as certified and inspected but suffered a major transmission failure within about 90 days. The transmission had burnt fluid and electrical defects shortly after purchase. The vehicle remained in repair for over 90 days, leaving me without transportation. Carvana claims my down payment was reversed but can not provide documentation proving the funds were returned to me. Carvana refuses to swap the defective vehicle unless I pay the down payment again. The lender has reported the account as delinquent and charged off the loan while the vehicle was inoperable. I am requesting that the CFPB investigate the payment handling, loan servicing, and representations made during the vehicle sale, and require the companies involved to provide documentation verifying the alleged payment reversal and correct any inaccurate account records Because the lender and seller are treating my down payment as reversed without providing proof that the funds were returned, I am concerned that my account may be inaccurately serviced or reported while the companies retain the benefit of the original payment. I am requesting that the companies provide verifiable payment processor documentation showing the alleged chargeback or refund, correct any inaccurate account records, and provide a fair resolution regarding the defective vehicle that was sold as certified but became inoperable within approximately 90 days. Carvana also previously issued me a refund check of approximately {$490.00} related to a different vehicle that was more expensive. However, the issue of the allegedly missing down payment was not raised until approximately XXXX days after I reported that the transmission would not shift into gear. During this time, Carvana informed me that their underwriting department claimed they could not verify my information and stated that the contract would need to be cancelled. This occurred even though the vehicle had already been sold and delivered to me and financing had already been established. When I attempted to contact Carvana through their website chat system, the automated system identified as XXXX stated that my information could not be verified and prevented me from communicating through the normal support channel. When I attempted to call Carvana by phone, a recorded message instructed me to email XXXX and then disconnected the call, preventing me from speaking with a live representative. Because of these communication restrictions, I have been unable to resolve the issues regarding the defective vehicle and the alleged payment reversal through normal customer service channels. In summary : The vehicle was marketed as certified and inspected, but suffered a major transmission failure within about 90 days of purchase. The transmission showed burnt transmission fluid and electrical defects shortly after purchase. The vehicle remained in the repair shop for more than 90 days, leaving me without transportation. Carvana claims my down payment was reversed, but can not provide documentation proving the funds were returned to me. Carvana refuses to swap the defective vehicle unless I pay the down payment again. Carvana stated their underwriting department could not verify my information after the sale was already completed. Carvana restricted communication and directed me to email XXXX while blocking phone and chat communication. The lender has treated the account as delinquent and charged off the loan while the vehicle was unusable. Because the lender and seller are treating my down payment as reversed without providing proof that the funds were returned, I am concerned that my account may be inaccurately serviced or reported while the companies retain the benefit of the original payment. I am requesting that the companies provide verifiable payment processor documentation showing the alleged chargeback or refund, correct any inaccurate account records, and provide a fair resolution regarding the defective vehicle that was sold as certified but became inoperable within approximately 90 days.

Company response to consumer: Closed with explanation