Attorney General settles with dealerships

By Nathan Mayberg
NEWTON — A local development corporation which owned two local car dealerships accused of charging bogus fees among other allegations, have agreed to settle charges brought by the New Jersey Attorney General's Office.

Newton Audi and Newton Volkswagen, both owned by JNA AA, LLC, will pay $50,000 to the state to settle the allegations, according to a statement issued by the Officer of the Attorney General Monday.

The charges were brought in a lawsuit filed by the office in June, in which the dealerships were accused of deceptive advertising and sales practices.

“These actions and the resulting settlements should send the message that dealerships must comply with state consumer protection laws or risk serious legal consequences,” said Acting Attorney General John J. Hoffman in a statement.

“This settlement ensures that consumers will receive transparency and honesty from this dealership, as required by law.” A message left with Newton Audi and Volkswagen General Sales Manager Ryan Allison, was not immediately returned.

In one instance, the Attorney General's Office alleged that a person who purchased a used vehicle from the company, was unable to drive it after the temporary title and registration expired.

In another case, they allegedly told a customer that a fee was mandatory, though it wasn't.

It is alleged that a customer was charged $350 for etching even though the consumer had declined the etching. Etching can include posting the vehicle's VIN number on the dashboard.

In another charge, the company allegedly failed to pay off a loan on a trade-in vehicle in a timely fashion which caused the consumer to be in default status for at least two payments.

The complaint also states that a consumer was overcharged by the company for registration and title fees but didn't receive a refund on the balance for six months.

Another consumer allegedly bought a used 2003 Nissan X-Terra but didn't receive title to the vehicle.

In another case, a consumer was charged a new car tire fee despite buying a used car with used tires.

The office also accused the company of not paying required used car Lemon Law fees.

Under the terms of the settlement, JDN AA agreed to, among other things, not to charge for after sale items without the consumer's written authorization; not represent to consumers that the purchase of an after sale item is mandatory when they are not, obtain the consumers' written acknowledgment to purchase an after sale item, provide consumers with an opportunity to review all sales documents prior to signing, not require consumers to execute any blank or incomplete sales documents, include the statement that "price(s) include(s) all costs to be paid by consumer, except for licensing costs, registration fees, and taxes," in advertisements.

The company also agreed not to sell a motor vehicle without possession of the title to the motor vehicle.

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint online at www.njconsumeraffairs.gov or by calling 1-800-242-5846 or 973-504-6200.