July 21, 2022—New York City Mayor Eric Adams, alongside Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga, have announced a settlement with Brooklyn Mitsubishi and Brooklyn Volkswagen.
According to a news release through the city, this settlement will utilize $304,900 towards New Yorkers who fell victim to deceptive practices regarding the companies selling used cars. As a result, 36 individuals will receive restitution that amounts to $154,900. The remaining $150,000 will be reserved for new people who come forward with complaints.
The DCWP charged Brooklyn Mitsubishi and Brooklyn Volkswagen with over 7,000 violations last fall. Some of the issues revolved around false advertising of vehicle features, warranties, and pricing as well as illegally selling cars above the advertised price.
The dealerships also falsely promised individuals with low credit scores "guaranteed approval" from a fake finance company. It is also reported that the dealerships lied about warranties, had illegal contracts, did not maintain required records, didn't respond to subpoenas from DCWP, and also submitted false licence applications to DCWP.
"A car can be one of the most expensive purchases consumers make and we will always do everything we can to protect the city's consumers from unscrupulous auto dealers," said DCWP Commissioner Mayuga in the news release. "With this settlement, we are delivering hundreds of thousands of dollars in restitution for victims of Brooklyn Mitsubishi and Brooklyn Volkswagen and sending a clear message to the used car industry that DCWP has zero tolerance for businesses that seek to prey on unsuspecting consumers with predatory financing and sales practices."
Mayor Adams and the DCWP have also secured and executed $500,000 in civil penalties from the dealerships, as well as a seven-day suspension of Brooklyn Mitsubishi's two licenses.