Nissan customers in New York who were overcharged when buying their leased vehicles may be eligible for refunds under a new agreement announced by New York Attorney General Letitia James.
The agreement expands restitution beyond the dealerships already targeted in previous settlements and could provide refunds to customers at Nissan dealerships across the state.
Dealerships paid penalties, issued refunds
The Office of the Attorney General investigated Nissan dealerships and found that 15 dealerships in New York City, the Hudson Valley and Long Island added unauthorized fees or inflated prices when customers attempted to purchase their leased vehicles at the end of their lease terms, according to James.
The dealerships agreed to pay $1 million in penalties and refunded more than $4.5 million to more than 3,100 consumers who were overcharged during end-of-lease buyouts.
New agreement expands refunds statewide
Under a new agreement with Nissan Motor Acceptance Company (NMAC), additional customers who were overcharged at other Nissan dealerships in New York may also receive restitution.
The agreement covers customers at the remaining New York Nissan dealerships that were not part of the original settlements. According to the attorney general’s office, consumers who paid unauthorized fees or inflated prices during lease buyouts will be eligible for full restitution.
“Buying a car is a major financial decision and New Yorkers should not have to worry about dealers using illegal junk fees to drive up the price,” James said in a statement. “Nissan dealers across New York misled their customers with junk fees and other costs to cheat them out of their hard-earned money.”
How the overcharges happened
The investigation began after consumers complained that dealerships were charging more than the predetermined purchase prices listed in their lease agreements and providing inaccurate paperwork during end-of-lease transactions.
According to the attorney general’s office, the issue became more widespread during the COVID-19 pandemic, when vehicle shortages and production slowdowns led more consumers to purchase their leased vehicles rather than return them.
Lease agreements allowed customers to buy their vehicles for a preset amount at the end of the lease. Investigators found that some dealerships added administrative or dealership fees and, in some cases, inflated vehicle prices on purchase documents.
Additional loan interest also will be refunded
Under the settlement, consumers who financed their lease buyouts through NMAC and paid interest on the inflated amounts will also be reimbursed for the additional interest they paid.
The agreement also requires NMAC to make changes to its lease agreements and business practices to help prevent similar overcharges in the future, according to court documents.
What Nissan customers should do
Consumers do not need to take any action to receive restitution, according to the attorney general’s office.
NMAC will identify eligible customers and mail refund checks for the full amount of any overcharges. Payments will be issued on a rolling basis through 2026.
This article originally appeared on Rockland/Westchester Journal News: New York Nissan lease customers to receive refunds
Reporting by Victoria E. Freile, New York Connect Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
By Victoria E. Freile, New York Connect Team | USA TODAY Network
