NEW YORK – Eight Nissan dealerships across New York State are feeling the heat after Attorney General Letitia James secured over $3.2 million in penalties and restitution for a widespread scheme to swindle customers on end-of-lease vehicle buyouts. The dealerships – Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan – systematically overcharged over 1,700 New Yorkers, padding invoices with fabricated “fees” and inflated vehicle prices.
The Attorney General’s Office (OAG) investigation, sparked by a surge in consumer complaints following the COVID-19 pandemic, revealed a pattern of deceit. Customers who had diligently leased their Nissan vehicles under agreements promising a set purchase price at the end of the term were hit with unexpected and unjustified charges when they attempted to exercise that option. These weren’t minor discrepancies; the dealerships were brazenly adding miscellaneous “dealership fees” and “administrative fees,” or simply lying about the vehicle’s actual value on the buyout invoice.
“Buying a car is a major financial decision, and no one should have to worry about dealers using illegal junk fees to drive up the price,” Attorney General James stated bluntly. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. My office’s investigation will put money back in the pockets of defrauded New Yorkers and require these dealers to steer clear of violating our laws and deceiving consumers.”
The financial penalties are substantial. Action Nissan in Rockland County will cough up $157,958.59 in restitution to 192 victims, alongside a $47,920 penalty. Bay Ridge Nissan in Brooklyn faces a $23,624 restitution bill to 46 consumers and an $11,960 penalty. Garden City Nissan in Nassau County is hit hardest with $824,013 in restitution for 361 victims and a hefty $89,624 penalty. Other settlements include: Huntington Nissan ($426,654 restitution, $68,750 penalty); Legend Nissan ($333,482 restitution, $20,000 penalty); Rockaway Nissan ($308,918 restitution, $44,250 penalty); Smithtown Nissan ($643,640 restitution, $80,250 penalty); and Teddy Nissan ($108,773 restitution, $35,560 penalty).
The good news for those ripped off? You don’t need to lift a finger. The dealerships have already begun distributing restitution checks directly to the affected consumers, covering the full amount of the overcharge. The OAG has also secured agreements forcing these dealerships to overhaul their invoicing practices, promising transparency and an end to the deceptive tactics. This brings Attorney General James’ total recovery from Nissan dealers to over $1 million in penalties and $4.5 million in restitution for more than 2,800 New Yorkers.
This case serves as a stark warning to dealerships across the state: transparency is not optional. Attorney General James has made it clear she will not tolerate predatory practices that prey on consumers, and the OAG will continue to aggressively investigate and prosecute those who attempt to line their pockets at the expense of hardworking New Yorkers. This isn’t just about money; it’s about accountability and restoring trust in the marketplace.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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