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The Paragon dealership family, which includes White Plains Honda, will have to pay $6 million in restitution and provide $500 to approximately 15,000 customers for engaging in deceptive sales tactics, including charging consumers for credit repair services and other “after sale” items without the customer's knowledge, the attorney general said.
“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 in a statement. “New York consumers must beware: Car dealerships sometimes pad their pockets by charging for worthless after-sale items, which inflate the price of their car. These items are often ones that consumers don’t need, did not ask for and often are not even told about. Businesses need to make a profit to survive, but it’s illegal to do so by duping consumers.”
The settlement prohibits Paragon from:
- Selling, offering to sell or marketing credit repair and identity theft services in connection with the sale or lease of a vehicle.
- Selling, offering for sale, or providing to consumers any after-sale product or service unless, prior to such sale, certain material terms, including price, are disclosed verbally and in writing
- Misrepresenting the price of the vehicle in final lease or sale contracts
- Negotiating any terms of a sale or lease with a consumer in a language other than English without providing a translation of certain material documents in the language in which the terms were negotiated before the consumer signs these documents
- Failing to provide consumers with sales or lease agreements that clearly and conspicuously itemize each after-sale product or service and its price.
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