What Happens If a Florida Dealer Gets a Consumer Complaint?

Operating as a licensed motor vehicle dealer in Florida comes with significant responsibility. When a consumer files a complaint against a dealership, it can trigger serious consequences—ranging from a simple inquiry to fines, license suspension, or even revocation. Understanding how the complaint process works and how to respond properly can make the difference between a minor issue and a major compliance problem.

This guide explains what happens when a Florida dealer receives a consumer complaint and how to protect your dealership.

Who Handles Consumer Complaints Against Florida Dealers?

Consumer complaints against motor vehicle dealers in Florida are primarily handled by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) through the Division of Motorist Services. Depending on the issue, complaints may also involve:

• The Florida Attorney General

• Local tax collector offices

• Federal agencies such as the FTC or CFPB

Most dealer-related complaints begin with FLHSMV.

Common Reasons Consumers File Complaints

Florida motor vehicle dealers commonly face complaints related to:

• Delayed or missing vehicle titles

• Failure to complete registration within required timelines

• Misrepresentation of vehicle condition or history

• Undisclosed fees or pricing discrepancies

• Odometer or disclosure violations

• Failure to pay off trade-in liens

• Issues involving dealer financing or documentation

Many complaints stem from administrative errors rather than intentional misconduct.

How the Complaint Process Works

1. Complaint Submission

A consumer submits a complaint directly to FLHSMV, usually online or in writing. The complaint outlines the alleged issue and may include supporting documentation.

2. Dealer Notification

FLHSMV notifies the dealer and requests a written response. Dealers are typically given a specific timeframe to respond, often 10–15 business days.

3. Investigation

FLHSMV reviews the complaint, the dealer’s response, and any evidence provided. This may include contracts, title records, advertising materials, or transaction documentation.

4. Resolution or Enforcement

Based on findings, FLHSMV may:

• Close the complaint with no action

• Require corrective action

• Issue fines or administrative penalties

• Refer the case for further enforcement

Can a Consumer Complaint Affect Your Dealer License?

Yes. While a single complaint does not automatically suspend or revoke a license, unresolved or repeated complaints can lead to:

• Formal disciplinary action

• License probation

• License suspension

• License revocation

The severity depends on the nature of the violation and the dealer’s compliance history.

How Dealer Surety Bonds Come Into Play

Florida motor vehicle dealers are required to maintain a $25,000 Motor Vehicle Dealer Surety Bond. If a consumer suffers financial harm due to a dealer’s violation of Florida law, they may file a claim against the bond.

If a bond claim is:

• Invalid: no payment is made

• Valid: the surety may pay the claim

The dealer is legally required to reimburse the surety for any paid claims. Unpaid claims can make future bond renewals difficult or more expensive.

What Dealers Should Do If They Receive a Complaint

If you receive notice of a consumer complaint:

• Respond promptly and professionally

• Provide complete and accurate documentation

• Avoid ignoring or delaying your response

• Correct administrative errors quickly

• Consult licensing or compliance professionals if needed

Proactive communication can often resolve complaints before they escalate.

Preventing Consumer Complaints in the Future

Dealers can reduce complaint risk by:

• Submitting title and registration paperwork on time

• Maintaining transparent pricing and advertising

• Training staff on compliance requirements

• Keeping accurate sales and finance records

• Reviewing FLHSMV updates regularly

Strong internal processes protect both consumers and your dealership.

When it comes to Florida motor vehicle dealers, All American Bonds and Insurance is an industry expert. While surety bonds and insurance don’t prevent complaints, having the right coverage ensures you stay compliant and protected when issues arise.

When it’s time to renew your dealer license, make sure your Motor Vehicle Dealer Surety Bond and Garage Liability Insurance are handled by All American Bonds and Insurance—so your renewal process stays smooth, accurate, and on time.

Consumer complaints don’t have to derail your dealership. Understanding how Florida’s complaint process works, responding correctly, and maintaining proper bonding and insurance can help you protect your license and reputation.

Preparation, transparency, and the right compliance partners make all the difference.