The defendants allegedly committed the following:
- failed to honor advertised sale prices, inflating the cost through a variety of methods;
- changed the sales price on paperwork in the middle of the sale without telling the consumer, a practice the defendants internally referred to as adding “air money” to the contract;
- double-charged consumers for taxes and fees without their knowledge; and
- told consumers that they had to pay thousands of dollars in unnecessary fees to purchase “certified pre-owned” cars that were not required by that program.
Bronx Honda and Fittanto violated the FTC Act, the Truth in Lending Act (TILA), and the Equal Credit Opportunity Act (ECOA).
Defendants to pay $1.5 million to settle FTC’s complaint
Bronx Honda and Fittanto reached a settlement with FTC. The defendants agreed to pay $1.5 million, which the Commission will use to provide redress to consumers affected by their discriminatory and other unlawful business practices.
The settlement also prohibits Bronx Honda and Fittanto from misrepresenting the cost or terms to buy, lease, or finance a car, or whether a fee or charge is optional. It also requires them to establish a fair lending program that will, among other components, limit the amount of additional interest markup they can charge consumers.
