FI showroom red and grey logo
MenuMENU
SearchSEARCH

New York AG Suing Staten Island Dealer Group for Payment Packing

New York Attorney General Eric T. Schneiderman's crackdown on payment packing continues. Today, he announced a lawsuit against two Staten Island dealerships owned by SG Hylan Motors Corp.: Staten Island Honda and Staten Island Nissan.

by Staff
July 28, 2016
New York AG Suing Staten Island Dealer Group for Payment Packing

 

2 min to read


NEW YORK — New York Attorney General Eric T. Schneiderman's crackdown on payment packing continues. Today, he announced a lawsuit against two Staten Island dealerships owned by SG Hylan Motors Corp.: Staten Island Honda and Staten Island Nissan.

The lawsuit alleges that SG Hylan Motors unlawfully sold “after-sale” products and services, including credit repair and identity theft protection services, to more than 2,300 consumers without their consent. The price for these services, the suit alleged, would at times exceed $2,000 per consumer.

Ad Loading...

Schneiderman is now seeking a court order to prohibit the dealerships from engaging in such practices in the future and for the dealerships to refund all illegally obtained overcharges to consumers.

According to the suit, SG Hylan Motors dealerships began using deceptive sales tactics back in 2011 and continued up until 2014. In that timeframe, SG Hylan Motors dealerships collected more than $2 million from consumers using its alleged deceptive sales tactics, court documents stated.

The dealerships, the suit alleges, would oftentimes misrepresent that certain services — like security systems and special tire protection services —  would be free or would charge consumers for services and then conceal the charges from them. On some occasions, the suit charges, the dealerships charged consumers for services, hid the charges and then never provided any of the services for which customers were charged. This was often done by bundling the price of the services with the price of the vehicle, the suit alleged.

Additionally, the suit charges the dealerships with selling customers credit repair and identity theft protection services through an arrangement with an independent company called Credit Forget it Inc. According to the attorney general’s office, charging upfront fees for services that promise to help consumers restore or improve their credit is a violation of state and federal law and any contracts that violate those laws are considered void.

In 2015, Schneiderman announced a settlement with the now-defunct Credit Forget it. The company was ordered to pay $2 million in fines, however, those charges were suspended on the condition that the company cease operations and notify all dealers with which it had contracts.

Ad Loading...

This lawsuit, according to the attorney general’s office, is part of the attorney general’s initiative to end the practice often referred to as “jamming,” or payment packing. Since 2015, Schneiderman has settled with nine dealership groups for a total of nearly $16 million in restitutions and penalties.

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 →