New York Attorney General Letitia James announced on June 3 that the Nissan Motor Assurance Company will provide refunds to all New Yorkers who were unfairly overcharged for their leased vehicles. An investigation by the Office of the Attorney General found that 15 Nissan dealerships added junk fees or falsified prices on leased vehicles that customers wanted to buy at the end of their lease, resulting in higher costs. As a result, these dealerships have paid $1 million in penalties and refunded more than $4.5 million to over 3,100 consumers.
According to James, “Buying a car is a major financial decision, and New Yorkers should not have to worry about dealers using illegal junk fees to drive up the price. Nissan dealers across New York misled their customers with junk fees and other costs to cheat them out of their hard-earned money. After securing refunds for customers of 15 Nissan dealerships, my office is now making sure that every New Yorker who was defrauded by any Nissan dealership gets their money back. We will always take action to stop illegal schemes that deceive consumers.”
The Office of the Attorney General began its investigation after receiving consumer reports during the COVID-19 pandemic about being overcharged and given inaccurate receipts for end-of-lease buyouts. The investigation revealed that while consumers had agreements allowing them to purchase their vehicles at a set price after leasing, some dealerships imposed additional “dealership fees” or “administrative fees,” or inflated vehicle prices on invoices when leases ended.
The new agreement with Nissan Motor Assurance Company extends restitution eligibility beyond the initial 15 dealerships; now all affected customers at any of the remaining 45 New York Nissan dealerships will receive full repayment for any overcharges. Consumers who financed purchases through NMAC loans at inflated prices will also be refunded extra loan interest paid. The settlement requires NMAC to change its lease terms and business practices moving forward.
Eligible consumers do not need to take action; NMAC will issue checks covering full overcharge amounts throughout 2026 as it audits all statewide dealerships. Previous settlements secured by James include more than $3.2 million from eight additional dealerships in May 2025, $350,000 from two Long Island dealers in June 2024, and over $1.9 million from five dealers earlier in March 2024.
James encourages affected individuals to file consumer complaints online if they suspect deceptive or fraudulent lease buyout practices may have impacted them.
The Office of the Attorney General promotes social justice and community well-being through civil rights enforcement and consumer advocacy; it protects New Yorkers’ rights and provides services such as fraud investigations and tenant dispute mediation across regional offices statewide, according to its official website. Letitia James heads this public law enforcement agency.
