Car Rental Companies Unlawfully Charging Property Damages?
Last Updated on June 26, 2017
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At A Glance
- This Alert Affects
- Consumers in Illinois, New York, California and Pennsylvania who had to pay both repair costs and diminishment of value after renting a car, getting into an accident and bringing it back to the car rental company damaged.
- Damages
- These car renters may be able to file a claim to seek compensation for money paid out after their accident if the car rental company charged the consumer for both repair costs and diminishment of value in violation of state laws.
- Company(ies)
- Car rental companies
- Additional Details
- In Illinois, New York, California and Pennsylvania, consumers who get into car accidents while driving a rental car are only required to pay either property damage or diminished value, whichever is less.
Consumers in Illinois, New York, California and Pennsylvania who damaged a rental car and had to pay repair costs and diminishment of value may have legal recourse. Under laws in these states, car rental customers are only required to pay one of these charges – whichever is less. If a car rental company has charged for both damages, their customers may be able to file a claim to recover money which the company wrongfully collected.
State Laws for Personal Property Damage Claims
According to laws in Illinois, New York, California and Pennsylvania, consumers are only required to pay for the costs of repair or diminished value of the vehicle, whichever is less, for a personal property claim. It has been alleged that car rental companies are not entitled to collect both charges, and by doing so, are violating state laws. Car rental powerhouse Enterprise Rent-A-Car has already been hit with a putative class action lawsuit in Pennsylvania, filed by a man who damaged his rental car and was forced to pay $153.11 for diminished value and $1531.10 for repair costs. The Enterprise class action lawsuit alleges that the company’s practice of collecting charges for diminishment of value and repair costs exceeded $500 violated state laws and its own contracts.
Class Action Lawsuit for Car Rental Customers
If you had to pay for diminishment of value and repair costs after bringing back a rental car damaged, you may be able to seek compensation. Potentially, car renters who were unlawfully charged for these damages may be able to participate in a class action lawsuit to recover the money which was wrongfully collected by the car rental company.
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