FI showroom red and grey logo
MenuMENU
SearchSEARCH

New York AG Reaches Two New Settlements in Payment Packing Crackdown

The attorney general's two-year crackdown on payment packing and the unlawful sale of credit repair services has resulted in 13 dealership settlements and more than $19 million in total restitution and penalties.

by Staff
October 18, 2017
New York AG Reaches Two New Settlements in Payment Packing Crackdown

 

2 min to read


NEW YORK – Attorney General Eric T. Schneiderman announced two new settlements in his crackdown on payment packing, or “jamming,” and the unlawful after-sale of credit repair and identity theft protection services provided by the now-defunct Credit Forget It Inc.

The state regulator reached settlement with Manhattan’s Potamkin Hyundai and Potamkin Mitsubishi and Value City Auto Group’s former Volkswagen of Huntington, Nissan of Huntington and Garden City Nissan dealerships in Long Island. Without admitting fault, they agreed to return more than $900,000 in restitution to nearly 6,400 consumers and $135,000 in penalties and costs to the state for selling the Credit Forget It services.

Ad Loading...

“New Yorkers shouldn’t have to worry that they will be duped when they are shopping for a car,” said Schneiderman. “We’ll continue to make sure dealerships are not illegally profiting by charging unsuspecting consumers thousands of dollars on unwanted items. I am pleased that we have now been able to return almost $19 million in restitution to those who have fallen victim to these unscrupulous tactics.”

In 2015, as part of the broader investigation, Schneiderman obtained a consent order that shut down Credit Forget It Inc., a New York-based company that sold the unlawful credit repair and identity theft protection services to the dealers as well as others. Since then, the attorney general has reached 13 settlements, with nearly 29,000 consumers eligible for restitution under those agreements.

It is a violation of state and federal law to charge upfront fees for services that promise to help consumers restore or improve their credit, and contracts that violate the law are void.

The attorney general’s investigations often found that dealerships bundled F&I protections, including the Credit Forget It products, service contracts, key replacement and security systems, into the vehicle sale prices instead of itemizing the costs separately. For some dealers, according to Schneiderman, consumers were totally unaware that they had received these services. In many other cases, consumers thought the services were free.

In addition to the more than $1 million in restitutions the two Manhattan and Long Island dealer groups agreed to pay, the settlement prohibits the operations from selling and marketing credit repair and identity theft services in connection with the sale or lease of a vehicle. They are also barred from selling F&I products or services unless, prior to such sale, certain material terms, including price, are disclosed verbally and in writing.

Ad Loading...

The dealership are also prohibited from misrepresenting the price of the vehicle in final lease or sale contracts, and failing to provide consumers with sales or lease agreements that clearly and conspicuously itemize each after-sale product or service and its price.

More F&I

Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Ad Loading...
Two hands holding tiles that spell YES and No on a black background
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Ad Loading...
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →
Ad Loading...
Reese Dailey from Automotive Training Academy by Assurant
F&IFebruary 4, 2026

Cash Deal Strategies

In this video, Reese Dailey of the Automotive Training Academy by Assurant reveals strategies to make cash deals profitable without relying on monthly payment bumps.

Read More →