What you should know
- An OAG investigation found that dealers added junk fees or mispriced vehicles between 2020 and 2023. The settlements require dealers to pay more than $1.6 million in restitution to more than 1,100 consumers and a civil penalty. of $340,000.
- The OAG opened an investigation into five Nissan dealerships (Baron Nissan on Long Island, Nissan of Westbury on Long Island, Nissan of Kings in Brooklyn, Nissan of Queens and Nissan of Staten Island) after consumers reported they were being overcharged and they were given inaccurate receipts.
- Dealers also agreed to reform their billing practices to ensure that all lease purchase customers are not overcharged or provided inaccurate receipts.
NEW YORK — New York Attorney General Letitia James on Thursday announced settlements worth more than $1.9 million with five Nissan car dealerships in New York City and on Long Island for overcharging more than a thousand customers who wanted to buy their leased vehicles at the end of their lease term.
An OAG investigation found that dealers added junk fees or mispriced vehicles between 2020 and 2023. The settlements require dealers to pay more than $1.6 million in restitution to more than 1,100 consumers and a civil penalty. of $340,000.
“Ignoring agreements and adding false fees hurts New York consumers, and that is something my office will not allow to go unanswered,” said Attorney General James. “These car dealers lined their pockets at the expense of hard-working New Yorkers who were trying to have a reliable car to get to work, take their kids to school, run errands, and live their daily lives. “Our investigation and settlement puts money back in the pockets of New Yorkers and sends a clear message that lying to New Yorkers and manipulating costs with underhanded tactics will not be tolerated.”
The OAG opened an investigation into five Nissan dealerships (Baron Nissan on Long Island, Nissan of Westbury on Long Island, Nissan of Kings in Brooklyn, Nissan of Queens and Nissan of Staten Island) after consumers reported they were being overcharged and they were given inaccurate receipts.
The investigation found that each of these consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a specified amount after the lease term was up.
But when consumers returned to dealerships when their leases were up to purchase their car, dealers substantially overcharged them. Dealers added various “dealer fees” or “administrative fees” or inflated the price of the vehicle on the invoice given to the consumer. In some cases, customers were overcharged by up to $7,000 for an $18,000 vehicle.
The OAG investigation also revealed that dealers provided customers with misleading invoices. These included misrepresenting illegal surcharges as government fees, such as a $37 state inspection fee that dealers charged as $300, and a $50 title fee that dealers charged as $500. New York law guarantees every consumer the right to a complete and accurate receipt for every automobile sale, but thousands of invoices examined failed that basic test.
According to the agreements announced on Thursday:
- Baron Nissan will pay $204,656.89 to 186 overcharged consumers and a $51,190 fine.
- Nissan of Kings will pay $437,560.86 to 420 overcharged consumers and a $147,000 fine.
- Nissan of Queens will pay $608,347.83 to 276 overcharged consumers and a $69,757 fine.
- Nissan of Staten Island will pay $282,255.61 to 184 overcharged consumers and a $55,200 fine.
- Nissan of Westbury will pay $102,636.07 to 72 overcharged consumers and a $19,440 fine.
“Thank you to Attorney General James for once again putting consumers first,” said Assemblyman Charles Lavine. “This action brings justice to New York consumers, including many in my district, who were simply trying to get a fair deal for one of the basic necessities of modern life and were deceived. “It also sends a message to those who engage in unethical business practices that their actions have consequences.”
The penalties paid by each dealership vary depending on the number of consumers who were overcharged and the pervasiveness and severity of the overcharging. The dealerships also agreed to audit all agreements between the start of the investigation and the present, and will provide additional refunds to overcharged consumers identified in that audit.
Consumers entitled to restitution do not need to take any action to receive payment and dealers have already begun paying restitution through mailed checks for the full amount of the surcharge. Dealers also agreed to reform their billing practices to ensure that all lease purchase customers are not overcharged or provided inaccurate receipts.
2024-03-29 02:02:34
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