Restrictions on recovery for damages to leased car by placing block or processing charge on lessee’s credit card; unfair, deceptive or coercive conduct prohibited.
1. A short-term lessor of a passenger car shall not seek to recover any portion of a claim arising out of damage to or loss of a leased passenger car by causing any block to be placed on the lessee’s credit card account.
2. A short-term lessor of a passenger car shall not process a charge on a short-term lessee’s credit card to pay for any damages to a passenger car leased by the lessee unless the lessor first:
(a) Obtains the written consent of the lessee, on a form that is separate from the form for the lease, to pay for the damages by processing a charge on the lessee’s credit card;
(b) Inspects the vehicle upon its return to the lessor to verify the extent of the damages; and
(c) Provides the lessee with a written estimate of the cost to repair the damages and the lessee provides the lessor with written authorization to pay for the damages by processing a charge on the lessee’s credit card in an amount that does not exceed the amount of the written estimate.
Ê The lessee may waive the provisions of paragraph (c) if the inspection conducted pursuant to paragraph (b) indicates that the cost to repair the damages will not exceed $500 and the lessee provides the lessor with written authorization to pay for the damages by processing a charge on the lessee’s credit card in an amount that does not exceed $500.
3. A short-term lessor of a passenger car shall not engage in any unfair, deceptive or coercive tactics in attempting to recover or in recovering on any claim arising out of damage to or loss of a passenger car.
Last modified: February 25, 2006