Business & Tech
Bergen Used Car Dealership Accused Of Swindling Customers Out Of Thousands Of Dollars
The Luxury Haus Inc., has agreed to change the way it does business and pay $20,000 in civil penalties.
BERGEN COUNTY, NJ — A used car dealership in Leonia has agreed to pay $20,000 in civil penalties and enter binding arbitration with customers who say the dealership defrauded them by refusing to honor advertised prices of vehicles and who used other deceptive tactics, authorities said.
The Luxury Haus Inc., also known as Luxury Haus 46 and Benz & Beemers of 46 agreed to the terms of a consent order that settles an investigation by the New Jersey Division of Consumer Affairs into allegations the dealership defrauded dozens of consumers over the past three years.
“For most people, buying a used car is daunting enough without having to worry about being preyed on by dealers engaged in the kind of chicanery Luxury Haus is accused of,” said Attorney General Christopher S. Porrino. “This Order will provide just relief through binding arbitration to customers who have been allegedly deceived by this dealership.”
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According to the division, the dealership violated state laws and regulations, including the Used Car Lemon Law. It allegedly charged fees without itemizing the price for each service performed. It is also accused of charging a consumer a mandatory fee for an optional service.
Failed to disclose prior vehicle damage and misrepresented the model of a used motor vehicle when contracting with customer, authorities said.
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Customers are seeking restitution amounts varying from $3,500 to about $113,4000, the division said.
The complaints were received from consumers located in Bergen, Essex, Hudson, Morris, and Middlesex counties, as well as in Pennsylvania, New York, Massachusetts, and Georgia.
The dealership, in the consent order, agreed to not engage in unfair business practices, maintain documentation of all advertisements of vehicles leased or sold for 180 days, and include in advertisements the statement: “price(s) include(s) all cost to be paid by consumer except for licensing costs, registration fees, and taxes.”
In addition to paying $20,000 in civil penalties, Luxury Haus has agreed to pay the Division $17,661 for its investigative costs and fees.
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