New York Attorney General Eric T. Schneiderman announced on Wednesday that his office reached a $13.5 million settlement with three car dealerships in the state that were found to have engaged in deceptive practices resulting in inflated car prices.
In a news release, Schneiderman named White Plains Honda as one the three Paragon auto dealerships that practiced “jamming,” or unlawfully charging consumers for hidden purchases. The jointly owned Paragon dealerships claim to be the largest combined Honda dealership in the country.
The other two named in the suit are Paragon Honda and Paragon Acura, both in Queens. As part of the agreement, more than $13.5 million in restitution will be returned to 15,000 consumers. The Paragon dealerships will also have to pay $325,000 in penalties, fees and costs to New York state.
An investigation revealed the dealerships were unlawfully selling credit repair, identity theft prevention services and other after-sale items, which in some cases added more than $2,000 in hidden costs onto the sale or lease of a single car. The settlement, Schneiderman said, is a part of a wider initiative to curtail jamming.
“When consumers shop for a car, they deserve to be dealt with honestly and fairly ”“ and not to be misled by auto dealers who use deceptive tactics to fleece their own customers,” Schneiderman said. “These items are often ones that consumers don’t need, did not ask for and often are not even told about.”
In the news release, Schneiderman said his office also intends to sue an additional 11 auto dealers across Westchester County, New York City and Long Island as their probe continues. Included on that list is Honda of New Rochelle.
White Plains Honda, on Central Avenue, leases and sells new and used cars.
