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 June 11, 2024

New York AG Receives $350,000 From Long Island Nissan Dealers Over Consumer Fraud

New York's Attorney General Letitia James has successfully reclaimed over $350,000 from two Long Island Nissan dealerships, accused of deceitful practices that affected numerous consumers.

Art Voice reported that James has recovered more than $350,000 from Route 112 Nissan and South Shore Nissan, penalized for overcharging and deceiving over 200 New Yorkers.

The investigation spearheaded by the Office of the Attorney General (OAG) began after receiving multiple complaints from consumers. These individuals believed they were unfairly treated during their end-of-lease vehicle purchases.

The detailed examination revealed that Route 112 Nissan and South Shore Nissan were adding unauthorized "dealership fees" or "administrative fees" and inflating vehicle prices on final bills.

This was not the first instance of malpractice for Route 112 Nissan. In 2015, they agreed to a settlement to cease issuing deceptive invoices, an agreement which they later breached.

Legal Repercussions and Restitution

The current settlement includes hefty fines for both dealerships and substantial restitution payments to the affected consumers. Route 112 Nissan is required to pay $39,390 to 103 consumers and a $250,000 penalty.

Similarly, South Shore Nissan is mandated to pay $33,191 in restitution to 120 consumers, along with a $31,200 penalty. Both penalties reflect the seriousness of the dealerships' violations.

Consumers eligible for restitution need not take any action to claim their compensation. The OAG has arranged for checks to be sent directly to the defrauded individuals, ensuring they receive what they are owed without further hassle.

This direct restitution method is part of the OAG’s commitment to correcting the wrongs inflicted by deceptive business practices and safeguarding consumer interests.

In response to the settlement, both dealerships have begun to reform their invoicing practices. These changes are designed to prevent future incidents of overcharging and the issuance of inaccurate receipts.

Attorney General Letitia James emphasized the broader impact of such deceptive practices on ordinary New Yorkers, many of whom rely heavily on their vehicles for daily activities.

Statewide Impact and Ongoing Efforts

“When dealers illegally drive up car prices, they cheat hardworking New Yorkers who rely on their cars every for getting to work or taking their kids to school," James stated.

She continued, highlighting the struggle many face with rising living costs, "Many New Yorkers are struggling to make ends meet and car dealers that add bogus fees onto their bills are making it harder for consumers to keep up with the cost of living."

The Attorney General has been active in tackling similar issues across the state.

To date, her office has recovered over $2.25 million from seven Nissan dealers, compensating numerous consumers who fell victim to similar schemes.

This pattern of enforcement underscores the OAG's dedication to protecting consumers from financial exploitation by ensuring that car dealers adhere strictly to state laws.

Concluding Reflections

In conclusion, the efforts of the New York Attorney General's Office have culminated in significant financial restitution for consumers and a stern reminder to the automotive industry.

Practices of overcharging and deception have been met with strict penalties, setting a precedent for compliance and fairness in consumer dealings.

With checks being mailed directly to affected individuals, the OAG continues to champion the rights of consumers, ensuring that justice is not only served but seen to be served.

Written By:
Christina Davie

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