NY1 For You: Customers Claim Queens Car Dealership Gives Lemon Loans
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A Queens car dealership is coming under fire as some of its customers have allegations of fraudulent financing. NY1's Susan Jhun filed the following NY1 For You report. When Sally Choi and Nikiya Exantus bought and financed their used cars at Auto Palace on Northern Boulevard in Queens, they got crazy deals they didn't bargain for.
"Over $36,000 for a used car that cost $14,500," says Choi.
"The balance was $13,500 but I ended up for the loan almost $30,000," says Exantus.
In both cases, loan amounts were more than double the cost of the cars, and those figures did not add up for the two women.
Choi claims she never agreed to take out such a massive loan and thought she was signing financing for the actual amount of the car.
In Exantus' case, she said the loan officer told her the additional amount on the loan was for a full warranty required by the bank. She was told she would get her money back after six months, something she says didn't happen.
"I'm outraged," says Exantus.
"The owner won't take any responsibility for it. He just gave me a copy of the driver's license of the loan officer saying that it's his fault," says Choi.
An Auto Palace manager told NY1 the same thing, claiming there was an independent loan officer who was handling the financing and was fired a few months ago.
The manager says he is aware of many complaints, but maintains Auto Palace is not responsible at all.
NY1 could not reach the loan officer in question but the station did contact the bank issuing the loans TD Finance and we're waiting to hear back.
Auto Palace has an "F" rating from the Better Business Bureau and is licensed by the Department of Consumer Affairs, which is now investigating the car dealer after receiving numerous complaints from consumers.
A spokesman for the Queens district attorney's office confirms the DA has received complaints about Auto Palace and is in the process of examining them.
In the meantime, Auto Palace is open for business.
"They're still operating. So tell me how that happens, I don't know," says Exantus.
NY1 will continue to follow this story.