NEW YORK - Attorney General Letitia James announced today that five Nissan (OTC:NSANY) dealerships in New York City and on Long Island have agreed to settlements totaling over $1.9 million for overcharging more than 1,100 consumers who were purchasing their leased vehicles. The dealerships, which include Baron Nissan, Nissan of Westbury, Nissan of Kings, Nissan of Queens, and Nissan of Staten Island, were found to have added unauthorized fees or inflated vehicle prices between 2020 and 2023.
The investigation by the Office of the Attorney General (OAG) revealed that these dealerships breached lease agreements by imposing miscellaneous "dealership fees" or "administrative fees," or by misrepresenting the vehicle's price on invoices. Some customers were overcharged by up to $7,000 on an $18,000 vehicle. Additionally, deceptive invoices misrepresented illegal upcharges as government fees, such as inflating a $37 state inspection fee to $300, and a $50 title fee to $500.
Under the terms of the settlements, the dealerships are required to refund over $1.6 million to the affected consumers and pay a civil penalty of $340,000. The restitution amounts and penalties vary by dealership, reflecting the number of consumers overcharged and the extent of the overcharging. The dealerships have also committed to reform their business practices to ensure accurate invoicing for lease buyouts.
Consumers entitled to restitution will receive payments without needing to take any action, as the dealerships have already started mailing checks for the full amount of the overcharge. These agreements also mandate that the dealerships conduct an audit of all deals from the start of the investigation to the present, providing additional refunds to any overcharged consumers identified.
This settlement underscores the commitment of the OAG to protect consumers from deceptive business practices and ensure fair treatment in the marketplace. The OAG encourages consumers who suspect they have been affected by fraudulent lease buyout practices to file a complaint online.
The matter was managed by the Consumer Frauds and Protection Bureau, part of the Division of Economic Justice within the Office of the Attorney General. The settlements with the Nissan dealerships are based on a press release statement from the OAG.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.