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Car Dealerships Sued for Fraud

Victoria Burguess1 year ago

Three car dealerships in New York have agreed to pay around $14 million to customers due to unlawful selling of credit repair, identity theft protection, and other services along with vehicles.

Overview of the Illegal Services Lawsuit

According to Reuters, the settlement reached with New York Attorney General Eric Schneiderman will allow approximately 15,000 customers of Paragon Honda in Woodside, Paragon Acura, and White Plains Honda who are all jointly owned located, to receive restitution payments.

These auto dealers are located in New York City and Westchester County. Schneiderman says he plans on suing 11 more auto dealerships for the same fraud.

The fraud occurred when the dealerships offered services through a contractor which were unlawful. Further, the dealerships were unauthorized to sell said services.

Other Types of Consumer Fraud

  • False advertising
  • Sell of faulty, dangerous, or defective products
  • Charging of undisclosed or unwarranted fees
  • Failing to safeguard personal information
  • Breach of warranty


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