.The state of Illinois will let used-car giant Carvana resume selling cars after temporarily revoking the company’s license earlier this month. But Carvana must meet specific requirements to protect car buyers from title and registration issues that have flooded the Illinois secretary of state’s office with complaints.

No more temporary plates, out of state registrations

Henry Haupt, spokesman for Illinois Secretary of State Jesse White, explains that the company will not be authorized to issue temporary license plates or out-of-state registration permits.

The state also demanded that Carvana post $250,000 bond. The state will use this money to cover any fines or fees incurred by customers as a result of the company’s failure to comply with the law.

Carvana experienced rapid growth during the first months of the COVID-19 pandemic. Studies have shown that car buyers prefer to complete as much of their buying process as possible online. Carvana’s sales model allowed them to purchase a used car almost entirely from home. Customers could even pick it up from a contactless “car vending machine” in some cities.

Temporarily suspended in two states

But regulators in several states said they had received complaints. Buyers said Carvana failed to deliver promised titles or repeatedly sent them temporary recordings, sometimes from out of state. So far, Illinois and North Carolina have imposed restrictions on the company.

Amid these setbacks, Carvana has laid off at least 12% of its workforce over the past month. Its stock price has fallen from a high of $370 in August to just $31.09 this morning.

New titling process

“We have resumed normal service in the State of Illinois,” a Carvana spokesperson said. “Carvana has delivered all vehicles previously purchased during this recent period as we discuss the situation with the State.”

Under an agreement with the Illinois Secretary of State’s office, Carvana must now process all title and registration transactions through state-licensed third-party companies.

Haupt noted, however, that Illinois continues to investigate consumer complaints against the company. The secretary of state, he said, “may reinstate the suspension order at any time.”