P&A Providers & Administrators
MenuMENU
SearchSEARCH

New York AG Settles Two Payment Packing Suits for $1.6 Million

December 14, 2016
4 min to read


NEW YORK — Attorney General Eric T. Schneiderman’s crackdown on payment packing continues. On Dec. 8, the regulator announced settlements with SG Hylan Motors Corp. of Staten Island and Best Auto Outlet of Floral Park, which will collectively pay $1.6 million in restitution to more than 2,300 victims of their alleged deceptive sales tactics.


Since 2015, Schneiderman has obtained more than $17 million in restitution and penalties as part of his office’s crackdown on the practice of “jamming,” or payment packing. SG Hylan will pay $1.5 million in restitution to more than 2,200 consumers for the unlawful sales of “after-sale” products, while Best Auto will return $115,000 to more than 200 consumers.

Ad Loading...


“When consumers shop for a car, they deserve an honest and fair negotiation — and not to be misled by deceptive dealerships looking to saddle customers with hidden costs,” Schneiderman stated in his office’s announcement. “My office will continue to investigate and hold accountable any auto dealers trying to pad their pockets by charging fees for undisclosed products and services that consumers do not need and did not ask for.”


The SG Hylan settlement resolves a lawsuit filed by the attorney general this past July. The regulator alleged that the group’s two dealerships, Staten Island Honda and Staten Island Nissan, charged consumers for an illegal credit repair and identity theft protection services — the cost sometimes exceeding $2,000 — without their knowledge. The agreement with Best Auto concludes an investigation into the dealership for similar misconduct, according to the regulator.


In 2015, Attorney General Schneiderman announced a settlement with the now-defunct Credit Forget Inc., the company that purported to provide the credit repair and identity theft protection services. The company was ordered to pay $2 million in fines, however, those charges were suspended on the condition that the company cease operations and notify all dealers with which it had contracts. Since then, the regulator has settled with 11 dealerships who sold the unlawful product.


According to the attorney general’s office, charging upfront fees for services that promise to help consumers restore or improve their credit is a violation of state and federal law, and any contracts that violate those laws are considered void.


In the attorney general’s lawsuit against SG Hylan, Schneiderman alleged that Staten Island Honda and Staten Island Nissan had been unlawfully selling the credit repair and identity theft protection services for three years starting in 2011. The suit alleged the two dealerships collected more than $2 million using the alleged sales tactics. Aside from paying into a restitution fund, SG Hylan will pay $100,000 in penalties.

Ad Loading...


As part of the Best Auto settlement, the dealership will pay $10,000 in penalties.


Additionally, the dealerships will no longer be allowed to sell, offer to sell or market credit repair and identity theft services in connection with the sale or lease of a vehicle. The dealers are also prohibited from selling, offering for sale or providing consumers any after-sale product or service unless, prior to the sale, certain material terms of the products are disclosed verbally and in writing.


Additionally, the dealerships are now unable to misrepresent the price of the a vehicle in a final lease or sales contract or to fail to provide consumers with sales or lease agreements that clearly and conspicuously itemize each after-sale product or service and its price.


Schneiderman’s has also reached settlements with the following dealerships and groups:

  • Paragon Auto Dealership: A group of automobile dealers in Queens and Westchester counties, including Paragon Honda, Paragon Acura, and White Plains Honda

Ad Loading...
  • Plaza Auto Dealership: A group of dealers located on Nostrand Avenue, Brooklyn, including, Plaza Toyota-Plaza Scion, Plaza Hyundai, Plaza Honda and Acura of Brooklyn

  • Manfredi Auto Dealership: A group of dealers located on Hylan Blvd, Staten Island, including Manfredi Fiat and Fiat of SI, Manfredi Mitsubishi, Manfredi Kia, Manfredi Hyundai, Manfredi Cadillac, Manfredi Chrysler Jeep & Dodge, Manfredi Fiat Inc., S.I. Toyota, Manfredi Toyota and Manfredi Scion, Manfredi Subaru, Manfredi Mazda and Staten Island Subaru

  • Koeppel Auto Dealership: A group of dealers located in Jackson Heights, Long Island City and Woodside, Queens, including Koeppel Nissan, Inc.; LK Automotive Enterprises, LLC. d/b/a Koeppel Subaru, KL Auto Enterprises LLC. d/b/a Koeppel Mazda and Koeppel Volkswagen Inc.

  • I. Autoworld Inc. d/b/a Generation Kia: located in Bohemia, Long Island

  • Nissan 112: Located in Patchogue, Long Island

  • Huntington Honda, Honda of New Rochelle and New Rochelle Toyota: located on Long Island and in Westchester counties

  • Westbury Jeep Dodge and Fiat of Westbury: Located in Westbury, Long Island

  • Security Auto Sales, Inc. d/b/a Security Dodge: Located in Amityville, Long Island

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →