Attorney General Report: 25 Percent Of Gas Stations Overcharge For Credit Purchases

New York, NY (AHN) - One-fourth of gas stations in New York City are overcharging motorists who fill up their tanks using their credit cards, according to a report by City Attorney General Andrew Cuomo.

The report was the result of investigation on 130 gas stations in the city and on Long Island. Part of the deceptive practice by gas station owners is to use smaller sizes on the word "cash" when putting enticing signs like "lower cash price".

As motorists' belts are tightened, many car drivers opt to pay with their cards, which under the law, it would be illegal to tack surcharges. Regulations permit granting of discounts to those who pay cash for their gas purchases, but according to Cuomo's report, the pump price is not actually lower than the average gas price in the state.

Cuomo's office sent cease-and-desist letters to 30 gas stations that overcharge motorists who gas up using their credit cards. The attorney general also warned New York City drivers "to be on the guard for gas stations that engage in deceptive practices to squeeze every last dollar out of their customers."

The Automobile Association of America sided with Cuomo in exposing the abusive practice by gas station owners.