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Westchester Toyota in Yonkers will pay $170,000 in fees and restitution to customers it overcharged for car leases.Westchester Toyota in Yonkers will pay $170,000 in fees and restitution to customers it overcharged for car leases.
New York Attorney General Eric T. Schneiderman announced the settlement Monday, accusing Westchester Toyota of charging "bogus" fees to 228 customers when they bought their vehicles at the end of their leases. The fees ranged from $295 to $2,895.
"New York auto dealers, like all New York businesses, cannot charge hidden fees and offer nothing in return. If they do so, they are breaking the law, deceiving their customers and creating an unfair marketplace," Schneiderman said in a statement.
The buyout fee was not disclosed to consumers when they leased their vehicles. They learned of it only when it was added to the vehicle's buyout price at the expiration of their lease, according to Schneiderman.
Under the settlement, Westchester Toyota will repay a total of $149,407 plus $22,000 in costs and penalties to New York State.