New Yorkers made four,600 fraud complaints final yr to the state’s Lawyer Basic’s Workplace. Right here’s the ten largest considerations:
Joseph Spector, Albany Bureau
Nissan of New Rochelle charged hidden charges.
A New Rochelle automotive dealership should pay again virtually $300,000 to clients it scammed with unlawful after-sale expenses, authorities stated.
Pana Nissan, LLC, also called Nissan of New Rochelle, agreed to a $298,000 settlement for bilking lots of of individuals, the Lawyer Common’s Workplace stated. The dealership at 2533 Palmer Ave. had been accused of “jamming,” the follow of charging individuals hidden charges that value some shoppers hundreds of dollars, the AG’s Workplace stated.
Nissan of New Rochelle will refund $276,127 to 298 clients, in addition to pay $22,084 in penalties, charges and prices to the state.
SCHNEIDERMAN: Car dealers to pay $13.5M for scamming customers
“Consumers should not have to worry that they are being scammed into adding on bogus products and services when they purchase a car,” Attorney General Eric T. Schneiderman said in a statement.
The AG’s Office said it began investigating Nissan of New Rochelle after receiving a consumer complaint in August 2015 that the dealership had fraudulently sold an after-sale product that was tacked onto the final cost of the car without the customer’s knowledge or consent.
The investigation turned up hundreds of instances of a product called Total Loss Protection, meant to serve as a theft deterrent, being added onto customers’ bills, costing them between $215 and $5,000, the AG’s Office said. That charge was added on after customers had already agreed to the final price, but before the sale was completed, the AG’s Office said.
The dealership also conned customers by advertising the Total Loss Protection as a permanent etch or engraving of a car’s VIN on the windows to deter theft, but that etching never actually occurred, the AG’s Office said. Instead, the office said, Nissan of New Rochelle often stuck sticker decals with assigned registration numbers on the inside of the door or door jamb where no one could see them, or did nothing at all.
The AG’s Office said the dealership also misled people by guaranteeing a credit of $3,000 or $5,000 toward the purchase of a new car if a car was stolen, but that credit turned out to be an illusion after numerous conditions and limitations were taken into account.
In addition to the financial commitment, the AG’s Office said, Nissan of New Rochelle has agreed to reforms, including fully disclosing that after-sale services are optional and the price is negotiable, clearly explaining the after-sale products to customers and only adding after-sale services to the final bill with the knowledge and consent of the consumer.