The New York State Department of Motor Vehicles announced a consumer protection action on behalf of 48 customers against a Long Island used-car dealer.
In complaints submitted to DMV’s Division of Vehicle Safety, many consumers said they had purchased used cars from Valley Stream-based 1-800-Preowned but never received proper titles for the vehicles. Since receiving the complaints, DMV has secured proper titles for 48 consumers from either the dealership or its floor planner with additional cases pending.
Although the business has closed, DMV will seek a formal revocation of the facility’s business registration. This will create a permanent record of the violations committed, which will be taken under consideration if any of the involved individuals apply to open another automotive business with DMV.
In most cases, the dealer did not provide titles even though customers paid an additional $75 fee.
For two consumers, 1-800-Preowned used the same vehicle to scam them both.
The dealership failed to pay off an outstanding loan on the first customer’s trade-in vehicle, and then sold that same vehicle to a second consumer who was unaware that a lien against this vehicle remained outstanding.
These complaints will be recommended for hearings before a DMV Administrative Law Judge, seeking restitution of about $45,000 for both the unpaid lien for the first customer and the total purchase price for the second customer.
The dealer has been cooperative and has spent $6,000 for registration fees. The total amount of restitution recommended in hearings is about $65,000 to date.