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.