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Spitzer Cracks Down on More F&I Practices

Last week, New York State Attorney General Eliot Spitzer settled with the owners of two Long Island dealerships over allegations of unscrupulous sales practices. Thomas Rubio, Gary Rubio and Joseph Oscar Rubio, the owners of Westbury Nissan and Smithtown Nissan, will pay over $27,000 in restitution for consumers and $14,000 in civil penalties and costs.

by Staff
September 7, 2004
2 min to read


Last week, New York State Attorney General Eliot Spitzer settled with the owners of two Long Island dealerships over allegations of unscrupulous sales practices. Thomas Rubio, Gary Rubio and Joseph Oscar Rubio, the owners of Westbury Nissan and Smithtown Nissan, will pay over $27,000 in restitution for consumers and $14,000 in civil penalties and costs.


Since 2002, at least 14 consumers have filed complaints about these dealerships with Spitzer's office. They said the dealerships:

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  • Increased the agreed upon sale price by adding unwanted options -- such as VIN etching and extended service contracts -- without disclosing it to consumers. Some consumers first learned about the extras after leaving a deposit on a car. Others only learned about the add-ons after taking possession of the vehicle


  • Refused to return deposits to consumers who exercised their rights to cancel an order


  • Misrepresented the coverage of extended service contracts


  • Duped consumers into buying extended warranties by saying that its purchase was required to obtain financing


  • Misrepresented VIN etching's benefits and repeatedly omitting important facts regarding the terms and conditions of VIN etching policies


    The Rubios agreed to reform the business practices of their dealerships. Westbury Nissan and Smithtown Nissan will provide after-sale written contracts for ordered add-ons that set forth the price and provide that if a consumer cancels the underlying sale or lease agreement, the add-on contract would be deemed cancelled. The dealerships must also provide consumers with written documentation explaining the coverage of extended service contracts, extended warranties and VIN etching.


    Westbury Nissan and Smithtown Nissan also are required to provide refunds within seven business days to consumers who cancel service contracts within the ten days provided by law.


    Since 1999, Spitzer's office has commenced nearly 200 enforcement actions against auto dealers and their advertising associations.


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