ROCHESTER, N.Y. (Legal Newsline) - New York Attorney General Eric Schneiderman announced on Tuesday that he obtained a court order against a Rochester-area used car dealership that allegedly misled customers and failed to pay off liens on used vehicles.
Schneiderman filed a lawsuit against Frontier Autohaus, alleging the company accepted cars for trade-in that still had remaining loan balances. Frontier Autohaus allegedly failed to pay off the balances, leaving previous owners on the hook for the original loans and unable to register their vehicles.
Frontier Autohaus also allegedly charged customers for warranties that were never purchased. When customers tried to use the warranty coverage, they allegedly found that none existed.
"A car is one of the biggest purchases many New Yorkers will make, and consumers should have confidence that they will not be misled by unscrupulous businesses that fail to uphold their legal obligations," Schneiderman said. "My office will aggressively pursue those who flout the law and abuse consumers in the marketplace."
Schneiderman's lawsuit resulted in a court order to permanently close the dealership, mandate the sale of its assets and prohibit Frontier Autohaus' owner, Shawn Minnehan, from ever again operating a car dealership in the state. Minnehan and Frontier Autohaus must pay $289,000 in restitution to 46 consumers and $50,000 in fines and other costs.