A Floral Park used car dealership has agreed to pay $125,000 after an investigation by state prosecutors alleged that it unlawfully sold credit repair and identity theft prevention services and other “after sale” items to more than 200 consumers.
As part of the settlement, Best Auto Outlet will pay back $115,000 to consumers. The dealer will also pay $10,000 in penalties, according to Attorney General Eric T. Schneiderman.
The dealership had no comment.
Schneiderman on Thursday also said his office settled a lawsuit with Staten Island-based SG Hylan Motors for selling similar products and services to unknowing customers.
Under the settlements, the dealerships are prohibited from selling, offering to sell or marketing credit repair and identity theft services in connection with the sale or lease of a vehicle.
These settlements are part of a wider investigation into auto dealership practices of “jamming” customers, or charging them for services they didn’t ask for.
Consumers who believe they have been jammed with unwanted products or services by a car dealership are urged to call the New York attorney general at 800-771-7755.