If you leased a Nissan vehicle in New York in the last few years and opted to purchase it at the end of your lease, you might be entitled to receive a portion of a $3.2 million settlement. That’s right. This restitution comes from the discovery of deceptive practices conducted by eight Nissan dealerships, which were overcharging their customers during end-of-lease buyouts. And now they’re having to pay it back.
What exactly happened?
On the beggining of the month, State Attorney General Letitia James announced that eight Nissan dealerships across will have to pay over $3.2 million for overcharging more than 1,700 customers who chose to buy their leased vehicles at the end of their lease.
The dealerships involved in the scheme are located in New York City, the Hudson Valley, and Long Island.
In an investigation conducted by the attorney general’s office, it was found that these establishments either added bogus fees or inflated the purchase price of leased vehicles that the clients intended to buy at the end of their lease. For the customer, it resulted in higher-than-promised costs.
As a result, the dealerships are being required by the State Attorney’s office to pay penalties for the overcharges and provide full restitution to the more than 1,700 consumers who were unfairly charged.
The whole investigation began after some consumers reported being overcharged and receiving inaccurate receipts for end-of-lease vehicle buyouts.
According to Letitia James, “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.”
This settlement is part of a bigger effort by the Attorney General’s office to combat deceptive practices in the automobile industry. Up until today, these investigations have led to over $4.5 million being recovered for more than 2,800 consumers, money that came from 15 Nissan dealerships. They have also secured $1 million in penalties from Nissan dealers statewide.
Apart from paying penalties for the overcharges and providing full restitution to the affected customers, the dealerships have also agreed to improve their invoicing practices in order to promote more transparency in the transactions and ensure full compliance with the law in all future lease buyout transactions.
What dealerships were involved?
The following eight dealerships were involved in the scheme and will now be forced to issue checks to customers:
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Action Nissan: will have to pay $157,958 to 192 consumers; and received a $47,920 penalty
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Bay Ridge Nissan: will have to pay $23,624 to 46 consumers; and received a $11,960 penalty
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Garden City Nissan: will have to pay $824,013 to 361 consumers; and received a $89,624 penalty
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Huntington Nissan: will have to pay $426,654 to 275 consumers; and received a $68,750 penalty
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Legend Nissan: will have to pay $333,482 to 233 consumers; and received a $20,000 penalty
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Rockaway Nissan: will have to pay $308,918 to 177 consumers; and received a $44,250 penalty
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Smithtown Nissan: will have to pay $643,640 to 321 consumers; and received a $80,250 penalty
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Teddy Nissan: will have to pay $108,773 to 156 consumers; and received a $35,560 penalty
How to claim your share
The restitutions are being issued automatically, so most drivers will not need to do anything rather than wait in order to receive their payment. Several of the investigated dealerships have already begun mailing the checks to the affected customers.
However, if you believe you were overcharged and haven’t been contacted by the state yet, it is still possible to submit a complaint. Just follow the steps:
- 1 – Visit the New York Attorney General’s website and look for the Consumer Frauds Complaint Form.
- 2 – Fill out the form and include your documentation related to the case, such as the lease agreement, the buyout paperwork, and any receipts that could show the overcharges.
- 3 – Submit the form and wait for the review and process. The office will get back to you.
Recently, a spokesperson for Nissan mentioned dealerships retain clear communications with customers and sustain lease agreements. Also, affected drivers should contact their lease administrators directly if they have queries.
Thus, in case you have been a victim of these practices, if there is a check due to you and you have not collected it, you can now have the money under the dealership settlement, just ensure that you possess all the relevant documents and file a complaint through the prescribed channels.
As a whole, vehicle purchasers need to keep in mind that lease agreements and invoices need thorough analysis before signing. If anything seems out of the ordinary, customers must flag suspicious decisions to relevant authorities.
