A Connecticut car dealership, Manchester City Nissan (MCN), is in hot water, facing accusations of surreptitiously siphoning off thousands of dollars from unsuspecting customers through unauthorized junk fees and sneaky extra charges. The state of Connecticut and the Federal Trade Commission (FTC) have taken action, coming together to file a complaint against MCN, asserting that the dealership exploited its customers through these inappropriate practices.
“Today’s action sends a strong warning to any dealership engaging in these types of deceptive practices that misconduct will not be tolerated,” said Connecticut Attorney General William Tong. “Manchester City Nissan’s egregious business practices appear to have violated multiple laws, and we’re going to hold them accountable on behalf of all the consumers they deceived.”
The complaint alleges that MCN, which also does business as tacked on certification charges and “inspection fees” to certified pre-owned vehicles, despite the fact that Nissan prohibits dealers from doing so. One customer claims that a $5,295.65 “inspection fee” was added to the price of a vehicle that had been advertised for $15,700.
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The complaint further alleges that despite the unnecessary inspection or repair charges, MCN neglected to inform Nissan that the vehicles had been sold. That deprived owners from the additional warranty protection promised in its advertising.
In addition, the FTC claims that the dealership added bogus charges that had not been agreed to by buyers, including charges like General Asset Protection, Total Loss Protection, and maintenance contracts. One customer supports that after agreeing to pay $20,500 for a Nissan Rogue Sport, she found that her monthly payments were higher than expected. She claims that the cause of high payments was that MCN tacked more than $7,000 in add-on fees to the amount she had agreed to finance the vehicle for.
Finally, the FTC alleges that MCN inflated the cost of government-imposed taxes and fees, or made them up entirely. In one case, the dealership reportedly charged a customer $345 for state fees that should have only cost $208.20.
The complaint charges the dealership, as well as a number of its top employees, with violating the FTC Act and the Connecticut Unfair Trade Practices Act. Meanwhile, MCN told WFSB that it is one of the highest rated Nissan dealerships in New England, and challenged the allegations against it.
“We dispute the claims in this lawsuit from the Federal Trade Commission—they do not reflect our company or our customers’ experience, and we look forward to addressing the claims in court,” it wrote in a statement. “In light of the pending litigation, it would not be appropriate to comment any further at this time.”