- Associated Press - Wednesday, June 17, 2015

ALBANY, N.Y. (AP) - New York’s attorney general has reached a $14 million settlement with three jointly owned car dealerships for what he calls “worthless” add-ons like credit repair and identity theft prevention services.

Attorney General Eric Schneiderman says Paragon Honda and Paragon Acura, both in Queens, and White Plains Honda were investigated for “after-sale” items to 15,000 consumers that added up to $2,000 in hidden costs.

Under a signed settlement agreement, the dealers will make $13.5 million in restitution and pay $325,000 to the state.

Schneiderman says it’s part of a broad initiative to end “jamming,” or unlawfully charging consumers by car dealers.

His office has served notice of intent to sue 11 other New York dealerships that had similar practices in New Rochelle, Huntington, Jericho, Brooklyn, Queens, Manhattan and the Bronx.

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