Enterprise
Rent-A-Car Pays $51,000 and Settles
Consumer Protection Complaint
DES
MOINES-- Enterprise Rent-A-Car Company-Midwest is paying $51,857.52
in settlement of a consumer protection complaint filed by Attorney General
Tom Miller's Office.
"We
alleged that Enterprise sometimes charged Iowa customers more than the
actual cost of repairs after a rental car had been damaged, an illegal
practice under Iowa law," Miller said.
Special
Assistant Attorney General Bill Brauch, Director of the Consumer Protection
Division, said an investigation indicated that Enterprise had charged
consumers for the estimated cost of repairs, even if the actual costs
came in lower than the estimate. Brauch said Iowa's Car Rental and Collision
Damage Waiver Act prohibits the practice.
Brauch
also noted that Enterprise had charged consumers only the estimated
cost of repair, even when the actual cost exceeded the estimate. He
said Enterprise had cooperated fully in the state's review of the matter.
In
settlement documents filed Thursday in Polk County District Court, Enterprise
denied the state's allegations and said it agreed to the consent judgment
in order to avoid the expense and delay that would result from contesting
the matter in litigation. The court's order barred Enterprise from violating
the law in the future.
Enterprise
agreed to pay $20,000 to the state for consumer education and implementation
of Iowa's Consumer Fraud Act, and $31,857.52 for reimbursement to consumers,
to the extent consumers entitled to the reimbursements can be found.
Funds not allocated to individual consumers will be used for consumer
education and litigation purposes. Consumers may call the Consumer Protection
Division for more information: 515-281-5926.
Enterprise
Rent-A-Car Company-Midwest is an Iowa corporation that rents cars in
Des Moines and other Iowa communities.