XDCX
11-18-2013, 11:32 AM
New York Attorney General Eric Schneiderman announced that his office reached a settlement with New Rochelle Toyota to issue refunds amounting to $86,826 and pay a $50,000 penalty to the state to cover the investigation costs. For a link to the full report - click here (http://legalnewsline.com/news/245538-n-y-ag-announces-settlement-with-car-dealer)
The settlement pertains to a $499 "Administrative Fee" the dealership had been charging their customers and the fact the dealership had the fee amount pre-printed on their buyer's order. The Attorney General indicated the dealership's actions made it appear that the fee was non-negotiable and the customers who paid the fee didn't derive any benefit from having paid the fee.
While the state of New York does allow dealers to charge a Document Fee, the amount of that fee is capped at $75.
While I'm not an attorney, I think whoever came up with the plan to charge an $499 Administration Fee should have seen this problem coming.
The settlement pertains to a $499 "Administrative Fee" the dealership had been charging their customers and the fact the dealership had the fee amount pre-printed on their buyer's order. The Attorney General indicated the dealership's actions made it appear that the fee was non-negotiable and the customers who paid the fee didn't derive any benefit from having paid the fee.
While the state of New York does allow dealers to charge a Document Fee, the amount of that fee is capped at $75.
While I'm not an attorney, I think whoever came up with the plan to charge an $499 Administration Fee should have seen this problem coming.