Municipal Government

Zipcar Charging Damage Fees Inappropriately

August 8, 2016 
By Stephanie West

New York, NY –  Zipcar has been charging consumers damage fees inappropriately for years and Attorney General Eric T. Schneiderman said this must stop.

Schneiderman has announced that his office reached a settlement with the membership-based rental car company Zipcar, Inc. for routinely charging New York consumers damage fees for rental vehicles in violation of New York law. The law requires that consumers have an opportunity to dispute damage fees before they are assessed, but an investigation by the Attorney General’s Office found that, in some cases, Zipcar charged consumers damage fees before notifying consumers of suspected damage.

“Consumers should never learn that they have been accused of damaging a rental car when they see a surprise charge on their credit card statement,” said Attorney General Schneiderman. “New Yorkers have a right to contest damage fees before any penalties are assessed and my office will continue to enforce the law to ensure that customers are treated fairly.”

Zipcar charged 5,000 New York consumers for damage to its vehicles from 2011 through 2015.

August 7, 2016

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