Capital Region Auto Dealer Agrees To Over $31,000 In Consumer Refunds

Attorney General Spitzer today announced that his office has entered into a settlement with a Capital Region auto dealer that will provide refunds to consumers who unknowingly bought former rental vehicles.

"A car's prior use as a rental vehicle is significant information that could greatly affect a consumer's decision to purchase a specific used car or the price he or she is willing to pay," Spitzer said. "My office's four recent enforcement actions against auto dealers in the Hudson Valley and Capital Region send a strong message that we will enforce the law that requires notice of a car's prior use as a rental vehicle."

Fuccillo Ford of East Greenbush, Inc. agreed to provide restitution to consumers who were not properly informed that the vehicle they were purchasing was previously used as a rental car.

The State Vehicle and Traffic Law requires dealers to notify buyers when a vehicle was previously used as a taxi, rental car, police vehicle, or returned to the dealer as a "lemon." The State Department of Motor Vehicles requires that this notice be included in the sales contract for the purchase of a vehicle.

In settling the case, it is estimated that Fuccillo will pay at least $31,000 in restitution, including $1,500 each to 21 individuals identified as not having received adequate notice. Fuccillo also agreed to pay $1,500 to any individual who files a bona fide complaint with Spitzer's office in the next six months demonstrating that they were misled by statements made by their salespersons and unknowingly purchased a former rental car after January 4, 2001.

An investigation by Spitzer's office revealed that salespersons at Fuccillo had provided misleading information to consumers about a used car's prior use. In this regard, numerous consumers indicated that they were led to believe that the vehicle was not previously used as a rental. Also, a number of individuals reported that they could not recall signing any written notice of the vehicle's prior use, had no copy of a notice in their paperwork, and that, if they had known, may not have purchased the vehicle or would have at least negotiated a better price.

Fuccillo also agreed to pay $17,500 in civil penalties and costs to the state.

As a result of Spitzer's investigation, Fuccillo also has implemented a policy in which the auto dealer clearly discloses a former rental car's prior use by posting a "certificate" in the window of the vehicle. Spitzer's office encourages all other auto dealerships throughout the state to include such a disclosure.

Since 2002, Spitzer's office has taken action against three other auto dealers for selling former rental vehicles without proper notice to consumers. In those cases, the office successfully recovered approximately $223,000 for nearly 120 consumers and obtained $33,700 in civil penalties and costs.

For more information about the settlement with Fuccillo, contact the Attorney General's consumer help line at (800) 771-7755.

This case is being handled by Principal Attorney Robert Vawter of the Consumer Frauds and Protection Bureau.