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  • The Bullet Point

    FTC files complaint against Manchester City Nissan for illegal junk fees, deceptive practices

    2024-01-08

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    Manchester City, Connecticut - The Federal Trade Commission and the State of Connecticut have initiated legal proceedings against Manchester City Nissan (MCN), its owner, and several key staff members on charges of deceptive and unfair practices concerning "certified" used cars, government fees, and various add-ons.


    Key Points

    • The complaint alleges deceptive practices in advertising and selling "certified pre-owned" vehicles, including unwarranted charges and failing to honor warranties, as well as misleading consumers about government-imposed taxes and fees, either claiming junk fees as required by the government or inflating actual government fees for profit.
    • MCN is accused of charging extra fees for vehicle certification, despite Nissan's policy against such charges.
    • Consumers were reportedly charged thousands in junk fees for certification, add-ons, and government charges, often without consent. Connecticut law identifies these practices as deceptive or unfair.
      • The dealership is alleged to have regularly added a substantial "inspection fee" to the advertised price of certified pre-owned vehicles.
      • They are also accused of charging for inspections or repairs already done and not reporting the sale to Nissan, depriving consumers of additional warranties.
      • Additionally, frequent charges for unapproved add-ons like General Asset Protection (GAP), service contracts, maintenance contracts, and Total Loss Protection (TLP).
    • One specific case involved a consumer being overcharged more than $7,000 in add-ons for a Nissan Rogue Sport. Another instance cited showed a consumer being overcharged for Connecticut registration and other state fees.
    • The complaint charges Chase Nissan (doing business as MCN), along with principals Patrick Dibre and Refaat (Brian) Soboh, general manager Michael Hamadi, finance manager Aiham Alkhatib, and sales managers Matthew Chmielinksi and Fred (Freddy) Mojica with violating the FTC Act and the Connecticut Unfair Trade Practices Act.


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