The New York State Attorney General recently conducted investigations into the selling practices of two New York State dealerships.  The investigations ended with settlements totaling more than $300,000 in restitution, fines and penalties.  The dealerships were accused of committing deceptive trade practices by charging customers fees on lease terminations which were not connected to a product or service provided by the dealer or disclosed to consumers in the initial negotiation process for the leases.

     This investigation is one of many which have been conducted in recent months.  Earlier in 2014 the Attorney General settled with 6 capital region dealerships on deceptive and misleading advertisements.  The dealers were fined amounts ranging from $7,500 to $15,000.  In addition, the dealerships were named in a press release which caused significant damage to their image and reputation.  

     The Attorney General investigates many different areas of customer protection including, but not limited to, advertising, credit practices and general deceptive trade practices.  The following is a list of some of the more serious areas of concern noted by the Attorney General.

Advertising

1. Using footnotes or asterisks that contradict, confuse or materially modify a principal message of an ad;
2. Failing to clearly and conspicuously provide certain required disclosures for lease or finance terms, such as the amount or percentage of any down payment and the annual percentage rate;
3. Restricting a rate or price to a "qualified buyer" or "qualified lessee" without disclosing such qualifications;
4. Using a print size that is so small as to not be easily readable. 

Credit Practices

1. Inflating income on credit applications;
2. Overstating vehicle attributes to qualify applicants;
3. Forging of signatures on applications and contracts;
4. False claims that after-market products are required in order to obtain credit;

General Deceptive Trade Practices

1. Pre-printed fees on contracts;
2. Charging fees not associated with a legitimate product or service;
3. Failure to pay off outstanding balances on loans on trade-in vehicles;
4. Failure to disclose prior use of used vehicle (rental, taxi, lemon law repurchase, etc.); 

     The Attorney General is also investigating several dealerships in New York for the alleged improper sale of credit-repair products and services from a company called Credit Forget It.  The Attorney General alleges that these dealers have engaged in fraudulent and illegal conduct for the sale of illegal credit repair and/or identity theft protection service contracts.  If you have received a letter from the Attorney General concerning the sale of these products please contact the LaBonte Law Group for immediate assistance in resolving the matter.  The LaBonte Law Group has been in contact with the Attorney General's Office concerning this investigation and can assist you with the process.