FTC refunds nearly $1M to Vroom consumers

The FTC is issuing more than $934,000 in refunds to consumers who bought a vehicle from Vroom following a July 2024 settlement that resolved a lawsuit related to claims that the then-retailer did not uphold delivery promises. The 2024 lawsuit claimed that Vroom violated the Mail, Internet and Telephone Order Rule, the Pre-Sale Availability Rule and the Used Car Rule, according to a March 13 FTC release announcing the refunds. Vroom had advertised to consumers that cars would be delivered within 14 days, according to the FTC. FTC grievances The FTC maintains that Vroom “misrepresented that it thoroughly examined all vehicles before listing them for sale” and: Failed to offer consumers the option to either consent to a delivery delay or cancel the order and get a refund; Did not provide prompt refunds when vehicle deliveries were not within the time frames promised; Did not provide consumers with a Buyers Guide in a timely manner that includes required information related to their purchase, such as if the car includes a warranty or is sold as is; and Did not provide warranty information required by law. Settlement Vroom settled with the FTC in July 2024 and agreed to pay $1 million to fund consumer refunds, according to the FTC. The settlement also required Vroom to document claims and promises regarding shipping times made to consumers. This month, the FTC began sending 20,361 checks to affected consumers, according to the release. Vroom declined to comment because the lawsuit was settled in July 2024 and relates to the now-shuttered e-commerce business, a company spokesperson told Auto Finance News . The FTC’s suit was filed after Vroom’s decision to close its e-commerce business in January 2024 and before it decided to file for bankruptcy in November. Vroom emerged from bankruptcy in January and its stock was relisted last month. Vroom retained subsidiaries United Auto Credit Corp. (UACC) and analytics company CarStory . UACC’s originations declined 19.5% year over year in the fourth quarter to $91 million and totaled $436 million for the full-year 2024, up 4.1% YoY. Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early-bird registration is available here .

FTC refunds nearly $1M to Vroom consumers

Lawsuit was filed and settled in July 2024

Undocumented subprime borrowers pose risk to Wall Street

Arivo taps refi to grow originations in 2025

Related Posts

CFPB streamlines supervision focus for 2026 examinations

Trump nominates a new CFPB head, but Vought isn’t going anywhere

CFPB funding in jeopardy following DOJ decision

CFPB change to nonbank oversight could affect securitizations

Arivo taps refi to grow originations in 2025

Stay Informed with Our Newsletters

The Roadmap Podcast

Retrieve your password