Peddle Fails to Pay For, Transfer Ownership of Used Vehicles, Class Action Alleges

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Peddle, LLC faces a proposed class action that claims the car-buying service has failed to both timely pay consumers who sell their vehicles to the company and transfer ownership of vehicles at the time of sale.

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The 20-page case was filed by a Georgia consumer who claims he continuously tried to cash the check he received from Peddle after selling his vehicle to the company in December 2020, but the check always bounced. By the time Peddle contacted the plaintiff to tell him not to cash the check and that they would reissue a payment, the check had already gone through after the man attempted to deposit it for a third time, the suit says.

The complaint states that after highway patrol pulled the plaintiff over and ran his license, he learned that a warrant for his arrest had been issued for theft by deception. The man was kept in jail overnight, bonded out, and his case was eventually dropped in May 2023, the filing relays.

The plaintiff says he and other consumers would not have sold their vehicles to Peddle had they known they would not receive payment at a reasonable time.

According to the case, consumers have also complained since at least 2020 that Peddle failed to provide them with the necessary transfer-of-ownership documentation within the required time frame after the company purchased their car. In these instances, a new buyer cannot legally drive the vehicle because the seller is still its legal owner, the suit notes.

“Defendant breached the implied warranty of merchantability because the vehicles are not fit for their ordinary purpose of providing reasonably reliable and safe transportation because Defendant did not provide the proper payment and, in some cases, transfer of ownership, within the required time frame for new buyers to legally drive the car they purchased,” the case states.

In addition, some consumers who have used the car-buying service report that their vehicle was not picked up by the assigned tow company on the promised date, and that they received lower offers than what Peddle originally offered when their vehicle was picked up, the complaint contends.

The lawsuit looks to represent anyone in the United States who entered into contracts with Peddle to sell their vehicle and had transfer-of-vehicle ownership issues or experienced problems with cashing checks or receiving payment.

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