Enterprise Lawsuit: Company Improperly Charged Damages

Enterprise has been named in a lawsuit in Pennsylvania, which claims that the rental car giant illegally charged renters for damages to vehicles. Allegedly, the company was charging drivers both the repair cost plus the diminishment of value of the car if it was returned damaged. Under the laws of Pennsylvania, Illinois, New York, and California, the driver is responsible for paying the lesser of the two, and not both. According to the Pennsylvania Record, Enterprise regularly charges customers both the repair costs plus 10% of the damages if over $500.

Allegedly, the company was charging drivers both the repair cost plus the diminishment of value of the car if it was returned damaged.

A punitive class action lawsuit has already been filed against Enterprise Rent-a-Car in Pennsylvania. In this lawsuit, a renter alleges that Enterprise charged him both $153.11 for diminished value and $1531.10 for repair costs of the car. As Pennsylvania law stipulates that the driver pay only one of these charges, and the lesser of the two amounts, this procedure is clearly illegal, says the suit. In addition, since Enterprise states that it will follow the law, it is allegedly breaking both its own contract as well as state law. Illinois, New York, and California all have state laws similar to Pennsylvania, making the same practice illegal in those states as well.

The lawsuit alleges breach of contract and unjust enrichment, saying that “These are form contracts that are provided to all consumers on a take it or leave it basis. No consumer has the ability to negotiate the terms of the contract, but are rather provided to them by Enterprise who is in a superior negotiating position because Enterprise drafted the contract and does not provide the parties the right to negotiate terms.” The lawsuit is seeking class action status, in addition to actual, general, special, incidental, punitive, statutory and consequential damages.

If you or a loved one lives in Illinois, New York, or California, has rented a vehicle from Enterprise Rent-a-Car, and has been charged for over $500 in damages, you may be able to pursue legal recourse. If Enterprise or any other rental company charged you both the costs of repair and the diminishment of value of the car, this is illegal. Because of this, you may be able to file a claim or enter a lawsuit to recover the incorrectly collected money. Contact a knowledgeable attorney through the form on the right to see if you might be eligible to join an Enterprise class action lawsuit seeking to recover wrongfully collected funds.