Attorney General Letitia James secured over $1.9 million in settlements from five Nissan car dealerships across New York City and Long Island, accused of overcharging consumers. James made the announcement on March 28.
The resolution mandates refunds for more than 1,100 affected customers and imposes significant reforms on the dealerships’ business practices. An inquiry led by the Office of the Attorney General (OAG) revealed deceptive practices spanning from 2020 to 2023, where consumers looking to buy their leased vehicles were hit with unwarranted fees or faced inflated prices. The settlements oblige the dealerships to issue over $1.6 million in restitution alongside a $340,000 civil penalty aimed at addressing the malpractices.
“Exploiting consumers with fraudulent fees undermines the trust New Yorkers place in dealerships,” James said. “This settlement is a victory for affected consumers and a clear warning to businesses that unethical practices will face consequences.”
The dealerships that were penalized include:
- Baron Nissan, based in Greenvale, which agreed to pay $204,656.89 in consumer restitution and a $51,190 fine.
- Nissan of Kings, located in Brooklyn, which will pay $437,560.86 back to consumers and a $147,000 fine.
- Nissan of Queens. The Ozone Park-based dealership must return $608,347.83 to consumers an pay a $69,757 fine.
- Nissan of Staten Island, which committed to paying $282,255.61 in restitution and a $55,200 fine.
- Nissan of Westbury, which is set to pay $102,636.07 in restitution and a $19,440 fine.
The penalties paid by each dealership vary based on the number of consumers overcharged and the pervasiveness and severity of the overcharging. The dealers have also agreed to audit all deals 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 the payment and the dealerships have already begun paying restitution through mailed checks in the full amount of the overcharge. The dealerships have also agreed to reform their invoicing practices to ensure all lease buyout customers are neither overcharged nor provided with inaccurate receipts.
Several local state legislators applauded James’ actions. “When buying out a vehicle lease, the only thing that should be taken for a ride is the car,” said State Senator Monica R. Martinez (D-Hauppauge). “These fraudulent and deceptive end-of-lease purchasing fees have cost consumers in excess of $1 million.”
“Preying on hardworking New Yorkers looking for reliable and affordable cars is unacceptable,” said NYS Senator Kevin Thomas (D-Garden City), Chairman of the Consumer Protection Committee. “These settlements underscore our commitment to consumer protection and send a clear message: fraudulent practices will be met with consequences.”
“Every consumer on Long Island and across the state deserves a fair shake, especially when making major purchases like a car,” added Assemblymember and Deputy Majority Leader Michaelle C. Solages (D-Valley Stream), who is also chair of the Black, Puerto Rican, Hispanic, and Asian Legislative Caucus. “It is unacceptable to have had these predatory business practices occur while so many family finances were already strained amid the pandemic and the affordability crisis that followed.”
“Today’s settlement is a victory for consumers everywhere! Adding junk fees to lease buyouts is flat-out unethical and violates our consumers’ trust. New Yorkers deserve honesty and integrity,” said Assemblymember Kimberly Jean-Pierre (D-Lindenhurst). “This settlement sends a clear message that these deceptive practices will not be tolerated.”
“This action provides justice for New York consumers, including many in my district, who were simply trying to get a fair deal for one of modern life’s basic necessities, and were cheated,” added Assemblyman Charles Lavine (D-Glen Cove). “It also sends a message to those who are using unethical business practices that their actions come with consequences.”
Any consumers who may have been affected by deceptive or fraudulent lease buyout practices may file a consumer complaint online.