05/03/2022 | Press release | Distributed by Public on 05/03/2022 16:16
For Immediate Release:
Tuesday, May 3, 2022
"Preying on New Yorkers looking to buy a used car is not only unacceptable, it's illegal. With this settlement, we've taken swift action to hold these shady dealerships accountable," said New York City Mayor Eric Adams. "I applaud Commissioner Mayuga and the entire team at the Department of Consumer and Worker Protection for delivering for New York City consumers."
"Protecting New York City consumers from scams and fraud is one of our most important responsibilities in government," said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. "I commend the Department of Consumer and Worker Protection for holding these dealerships accountable for breaking the law and securing thousands in restitution for consumers."
"When New Yorkers buy a used car, they expect to get a fair and honest deal," said DCWP Commissioner Vilda Vera Mayuga. "With this settlement, we are delivering thousands of dollars in restitution for the victims of JF Motors and sending a clear message to the used car industry that DCWP will hold them accountable if they choose to deceive their customers."
DCWP charged JF Motors' dealerships with using deceptive advertising to lure customers to their dealerships and then illegally selling cars at prices well above the advertised prices. JF Motors also frequently marketed their cars as "Certified Pre-owned" by the National Independent Automobile Dealers Association (NIADA) even though JF Motors did not conduct the required 125-point inspection, give buyers the promised 10-year/100,000 warranty, or provide the vehicle history report for each vehicle. JF Motors inflated prices by adding fake fees, even charging consumers a fee for the fake NIADA certification.
The JF Motors dealerships also used illegal contracts, required consumers to buy service contracts that either did not exist or had less coverage than promised, overcharged out-of-state buyers for title and registration fees, and failed to provide contracts and other documents to consumers in Spanish even though the deal was negotiated in Spanish.
DCWP currently licenses 505 used car dealerships and has received more than 5,638 complaints about the industry over the past five years. In that same period, DCWP has conducted more than 2,931 inspections of used car dealerships and issued more than 1,156 violations, most of which were for failure to post required signs, parking or storing cars on sidewalks and public roadways, and missing price disclosures. As a result of mediating complaints, charging businesses with violations of the applicable law and rules, and executing settlements, DCWP has secured over $1.8 million in consumer restitution and more than $4.6 million in fines against used car dealerships in the past five years.
This settlement was handled by Senior Staff Counsel Bradley McCormick, under the supervision of Associate General Counsel Adam Blumenkrantz of the General Counsel Division, which is led by Acting General Counsel Michael Tiger.
"One of the most important jobs DCWP does is enforcing regulations and returning funds to consumers. Protecting people from predatory businesses has been my priority since I became Chair of the Consumer Affairs and Worker Protection Committee, and I'm glad to have a partner like Commissioner Vilda Vera Mayuga and her team to vigilantly protect consumers and hold predatory businesses accountable," said Council Member Marjorie Velázquez.
"New York consumers have faced unprecedented issues, with unscrupulous entities ready to take advantage," said Assemblywoman Nily Rozic, Chair of the New York State Assembly Committee on Consumer Protection. "I commend the City's Department of Consumer and Worker Protection for their work advocating for Queens consumers."
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