NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced a settlement Dec. 8 with SG Hylan Motors Corp., a Staten Island dealership doing business as Staten Island Honda and Staten Island Nissan, and a separate settlement with Best Auto Outlet Inc., located in Floral Park.
SG Hylan allegedly sold illegal “after-sale” products and services, including credit repair and identity theft protection services, to roughly 2,300 consumers. The company will pay $1.5 million in consumer restitution to resolve the allegations. Best Auto purportedly engaged in similar practices, unlawfully selling credit repair and identity theft prevention services. The company will pay $115,000 in consumer restitution to resolve the claims.
“When consumers shop for a car, they deserve an honest and fair negotiation – and not to be misled by deceptive dealerships looking to saddle customers with hidden costs,” Schneiderman said. “My office will continue to investigate and hold accountable any auto dealers trying to pad their pockets by charging fees for undisclosed products and services that consumers do not need and did not ask for.”
SG Hylan also will pay $100,000 in penalties, and Best Auto will pay $10,000 in penalties.