Breaking News
More () »

Iowa Attorney General: Iowa to receive around $20,000 in settlement with CarMax

Iowa will receive $20,589 from the multistate settlement over the disclosure of safety recalls.

DES MOINES, Iowa — The state of Iowa will receive approximately $20,589 as part of a $1 million multistate settlement with CarMax, Iowa Attorney General Tom Miller announced Thursday.

While federal law prohibits the sale of new cars with open recalls, there has been no regulation requiring CarMax to disclose recall information for used cars prior to this settlement. 

Those looking to buy a used car from CarMax will have access to full recall information prior to and while shopping for a car, a practice CarMax said they have been upholding since November 2014.

"In fact, as soon as NHTSA made available vehicle specific recall information in 2014, we began providing the information to customers nationwide and we continue to do so today ... we work hard to ensure our customers have the information they need to take action and have recalls repaired at a manufacturer-authorized facility,” Joe Wilson, CarMax's Chief Operating Officer, said in a statement. 

According to the press release, CarMax will include hyperlinks for online shopping and QR codes for cars on the lot that will take the user directly to any recall information.

"When buying a vehicle, Iowans have the expectation they are receiving reliable and accurate information from the dealer, especially when it comes to the safety of the vehicle,” Miller said in a press release. “With this settlement, CarMax customers can know that they have complete information about any safety recalls that apply to their vehicle.”  

The investigation began in 2014 when a group of Attorney Generals looked into vehicles with open recalls out of concern for consumers who may not know their potential purchase was unrepaired. 

CarMax fully cooperated with the investigation. 

The used dealership will continue to use the National Highway Traffic and Safety Administration's (NHSTA) identification tool to help provide safety information to buyers. 

Buyers can use the NHSTA tool to research any open recalls.

Local 5 is now on Roku and Amazon Fire TV. Download the apps today for live newscasts and video on demand.

► Download the We Are Iowa app
► Sign up for Local 5's "5 Things to Know" email newsletter
Subscribe to Local 5 News on YouTube

Before You Leave, Check This Out