By Christopher Elliott | Journey Troubleshooter
Q: I rented a van from Hertz and whereas I used to be driving it, I hit a deer. I instantly reported the accident to Hertz, filed a police report, and submitted a declare by way of my Chase bank card, which presents major collision protection.
Regardless of my efforts, Hertz failed to supply the mandatory documentation for months, inflicting my declare with Chase to shut attributable to nonresponse. Ten months later, Hertz all of the sudden despatched me a invoice for $5,873, threatening to ship me to collections.
After Chase settled the declare, Hertz demanded a further $842 for “diminished value,” but it surely couldn’t present any documentation or rationalization for this payment. I’ve spent over a yr attempting to resolve this, and I’m exhausted. Do I’ve to pay this payment, or can Hertz be held accountable for his or her lack of communication and transparency?
— Victoria Muenchow, Anchor Level, Alaska
A: Hertz ought to have despatched you the mandatory documentation, together with the accident report, demand letter, and itemized restore invoice, promptly after the incident. Underneath most rental agreements, firms are required to behave in good religion and supply well timed communication, particularly when insurance coverage claims are concerned. Hertz’s 10-month delay in contacting you is unacceptable and sure violates their very own insurance policies for dealing with claims effectively.
You probably did every part proper by reporting the accident instantly, submitting a police report, and submitting a declare by way of Chase. You additionally saved meticulous information of the incident and declare.
In hindsight, you would have escalated the problem sooner by reaching out to Hertz’s govt staff or submitting a proper criticism along with your state’s lawyer common. (I publish the names and numbers of the Hertz customer support executives on my client advocacy web site, Elliott.org.)
What’s diminished worth? Hertz claims the accident diminished the car’s market worth after you hit the deer. In line with Hertz, although the repairs might have been flawless, the van was price $842 much less. However there’s only one downside. Hertz didn’t hassle to supply any documentation that proved the diminished worth. The automobile rental firm’s incapacity to furnish documentation or a transparent rationalization for the way it calculated this payment raises questions on its legitimacy.
Diminished worth and its cousin, lack of use, are the 2 most controversial automobile rental charges. Lack of use is the theoretical sum of money the automobile would have earned if it hadn’t been within the restore store. (Some states have banned lack of use charges.) Whereas some rental agreements might embody clauses permitting for diminished worth claims, it’s understood that firms should substantiate such charges with proof, akin to value determinations or market evaluation. Hertz didn’t try this.
I contacted Hertz in your behalf.
This case is a reminder of the significance of paperwork — not simply theirs, however yours. Thank goodness you saved wonderful information of your interactions with the automobile rental firm and the bank card firm. When you hadn’t completed that, you won’t have had a lot of a case.
