AG: Over $1M in refunds available to those overcharged by 2 Westchester car dealerships
The New York Attorney General’s Office secured more than $1 million from DARCARS Lexus and DARCARS BMW in Mount Kisco.
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Some Westchester car buyers could be getting money back after state investigators found two local dealerships charged fees that were not clearly disclosed.
The New York Attorney General’s Office secured more than $1 million from DARCARS Lexus and DARCARS BMW in Mount Kisco.
Officials say the dealerships imposed a 2% fee that was deceptively presented as a sales commission charge. According to officials, the fee was optional, provided no benefit to consumers and was not clearly explained to customers.
The attorney general says they also found that the dealerships sold an expensive add-on package by misleading customers into believing it was required as part of a vehicle purchase or lease agreement.
Under the settlement, DARCARS Lexus must pay $892,671.26 to reimburse all consumers who were charged the sales commission fee between October 23, 2021 and May 30, 2022.
Both dealerships were ordered to pay $116,849 back to customers who were misled into paying for DARCARS Assurance and complained to the attorney general. Additional consumers who told the attorney general about the dealerships’ deceptive sales commission fee will get a total of $164,998.72 in refunds.
The Attorney General's Office general's office says customers who paid the fees but have not yet been compensated will get claim forms in the mail. The settlement says the dealerships must reimburse any consumer who submits a valid claim.
In addition to the restitution, DARCARS will pay $700,000 in penalties.
