NJ Man Claims Nissan Extended Services, Dealer Failed to Properly Disclose Vehicle Financing Terms

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A New Jersey man has filed a proposed class action case against Nissan Extended Services of North America, Inc. (NESNA) and the company that does business as Hudson Nissan in which he claims he purchased a $1,500 vehicle service contract the companies falsely represented as subject to zero-percent financing.

The complaint explains the plaintiff bought a used Nissan Altima from Hudson Nissan in April 2015. To finance the purchase, the plaintiff entered into a Retail Installment Contract with Hudson Nissan, the case says, with monthly payments subject to an accrued annual interest rate of 23.99 percent.

The plaintiff says he also purchased a Vehicle Service Agreement from Hudson Nissan for $1,500 to cover repair parts if necessary. The man claims he was told this Vehicle Service Agreement would be subject to zero-percent financing, yet alleges he came to find out it was subject to the same 23.99 percent annual interest rate as his Retail Installment Contract.

“NESNA violated [the Moss-Magnusson Warranty Act],” the lawsuit alleges, “which requires that a services contract, ‘fully, clearly and conspicuously discloses its terms and conditions in simple and readily understood language.” 

Initially filed in state court, this suit has since been bumped to New Jersey federal court.