Charged Junk Fees on a Car? A New Settlement Shows You Can Push Back

$4 million is going back to car buyers

A Connecticut car dealer got caught adding fees that customers never agreed to. The Federal Trade Commission (FTC) and the state of Connecticut secured a $4 million settlement with Manchester City Nissan. That money will be used to pay back customers.

The FTC and Connecticut said the dealership charged people thousands in unlawful fees. Some buyers were told to pay to "certify" used cars that were already advertised as "certified pre-owned." Other charges, like total loss protection, were slipped into financing agreements without the buyer knowing.

Connecticut Attorney General William Tong said the dealership "systematically ripped-off Connecticut customers through needless, unauthorized junk fees." The settlement sends millions of dollars back to those customers.

Why this matters for your own car deal

Junk fees on a car are the extra charges added to a price without your clear consent. The point of this case is simple: dealers have to be honest about the price and get your permission for every charge.

As part of the order, the dealership must clearly show the maximum total price you must pay for a vehicle (leaving out only required government charges). It also must get your express, informed consent for all charges.

That is a good standard to hold any dealer to. If a fee showed up that you never agreed to, or you paid to "certify" a car that was already certified, that may be a fee you can question.

How to check your paperwork

Back-to-school season is expensive, and a surprise car fee only makes it worse. It is worth pulling out your car contract and reading it line by line.

Look for fees you do not recognize. Compare the advertised price to what you were actually charged. Watch for add-ons like service contracts, gap or total loss protection, or extra "certification" fees you did not ask for.

If something looks wrong, you can report it to the FTC for free. You never have to pay a company to file a complaint or to ask a dealer for a refund. Doing it yourself costs nothing.

Frequently asked questions

Do I get money from this settlement?

The $4 million is meant to refund customers of Manchester City Nissan in Connecticut. If you bought there, watch for official FTC contact. The FTC will never demand money or a fee to send you a refund.

What counts as a junk fee on a car?

It is any charge added without your clear consent, like paying to certify a car that was already certified, or add-ons like total loss protection slipped into your contract without your knowledge.

Does it cost anything to report a dealer?

No. Reporting to the FTC at ReportFraud.ftc.gov is completely free. You never need to pay a company to file a complaint or request a refund from a dealer.

How do I know if the FTC contact is real?

The real FTC will never demand money, make threats, tell you to transfer money, or promise a prize. If someone does, it is a scam.