Valley Stream dealership failed to give customers proper titles, DMV says

Forty-eight customers of 1-800 Preowned, a used-car dealership in Valley Stream, issued complaints on March 6 saying that they never received proper titles for their vehicles, according to the New York State Department of Motor Vehicles.

An investigation showed that in most of these cases, the dealer, located at 400 West Merrick Rd., did not provide titles even though the customers paid an additional $75. These customers risked having their vehicle impounded by law enforcement and possible insurance lapse violations that could have resulted in fines and the potential suspension of their driver’s license.

In one case, the dealer failed to pay off an outstanding loan on a customer’s trade-in and then sold the vehicle to a second customer who was unaware of the outstanding lien. These complaints will be recommended for hearings before a DMV Administrative Law Judge, seeking restitution of about $45,000 for both the unpaid lien and the total purchase price of the second consumer.

The DMV’s Division of Vehicle Safety was able to acquire titles for all 48 customers from either 1-800 Preowned or from companies that provided short-term loans to 1-800 Preowned. According to the DMV, the dealer has been cooperative and has spent $6,000 on registration fees. The total amount of restitution recommended is about $65,000, but there is potential for additional complaints against this dealer.

Although the business has closed, the DMV will seek a formal revocation of the business’ registration to 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 the DMV.

If you believe you are a victim of 1-800 Preowned or any other DMV-regulated business, call vehicle safety at (518) 474-8943 any weekday from 8:15 a.m. to 4:15 p.m. More information can be found at dmv.ny.gov.