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  1. #1
    Join Date
    Feb 2010
    Posts
    15

    Default Damage Fees, Customer is Disputing

    My question involves business law in the state of: California

    I run a small limousine company, and a few weeks ago one of our groups tore our upholstery on the headliner of our limo. I am very fair about damage and have never once charged a client for damages…this time the damage is too extensive to let slide…we have to replace one half of the entire roof covering.

    I’m hoping to resolve this in a fair manner. Pleeeeeease help!


    The charter ended at about 7pm on a Saturday night (it was dark by then). The limo was parked/unused until the following Tuesday morning when we noticed and documented the damage with a damge report and pictures. We notified in writing and charged the client the $800 fee as stated in our online contract. The damage is going to cost more than $800. I am 100% certain that this client's group is who did the damage.

    The client has retained a lawyer who is disputing the charges and demanded for us to fax all documents we have regarding the rental/damage/inspection reports etc. We replied back that the documents contain proprietary business info and sensitive data on the client (ie credit card and personal info). We stated we would gladly provide all docs once the subpoena process is completed.

    Their lawyer states that we are required by law to provide the documents, and “the fact that we are refusing to provide them is an admission that they don't exist.”

    Their lawyer states that this “Account” is in dispute...is it truly considered an account?

    The lawyer stated that we are now in violation of the Fair Debt Collection Practices Act, as well as the Unfair Business and Professions Act. Any info here?

    Their lawyer states they may move forward with a “preliminary injunction”. What do I do about that?

    Is this right? Do we have to provide the docs before subpoena? Is it too late to send them now? Do damage fees really fall under the Fair debt act?


    To rent our limo the client had to fill out and complete our online agreement:


    3. Client shall be liable for any damages done to the vehicle as a result of intentional, reckless or negligent conduct of any passenger. You will be held liable for damage or extraordinary clean up expenses caused or incurred with respect to the interior or exterior of the passenger compartment. Client is urged to notate any existing damage prior to charter. Damage to the vehicle sustained during client's trip includes all EXCESSIVE spills, burns, rips, tears, damage to the television, stereo or other equipment, and any other damage caused by clients or his/her guest whether intentional, accidental, reckless or negligent.

    4. Client agrees to pay the following charges that may occur:
    a. $400.00 Smoking in the limousine; will result in immediate termination of the trip;
    b. $500.00 Cigarette burns;
    c. $800.00 (Minimum) Ripped or damaged upholstery;
    d. $200.00 Excessive spillage of drinks;
    e. $200.00 Stained Upholstery;
    f. $300.00 Vomit in or on the limousine;
    g. $80.00 Lost or broken remote;
    h. $275.00 (Minimum) for each act of vandalism
    i. $200.00 Excessive mess in the vehicle;
    Client further agrees that limo company may in its sole discretion determine if any damage caused by the Client or the Client’s guests requires repair by a third party and such damage will be charged to the Client’s credit/debit card given at booking

    ….


    AND...

    10. Additional charges will be applied to the credit card on file within 3 business days of charter conclusion to cover any damages or overages that occur.

    AND…

    15. I the credit card holder / purchaser agree to pay limo company upon clicking "Agree & Continue". I am satisfied with the terms and conditions above and fully understand and agree. I understand & agree that I am liable for the deposit, owed rental fees, and damage fees. I agree to pay any credit card charges according to the card holders agreement:
    Then client has to then enter their credit card and billing info, then click on a button that says AGREE AND RESERVE

    Then the client also signed/dated our contract when we picked them up that says:

    Contract Agreement: Please observe our non-smoking policy. The client is responsible for guests and assumes full financial responsibility for any damage to vehicle caused by client or guest whether by accident, neglect, or intent. We assume no responsibility for articles left in vehicle. Client assumes full financial responsibilities for all payments due at the end of the charter, including overtime, gratuity, and damage fees. Regurgitation fees are $200, everything else will be estimated by a professional. Client authorizes deposit and/or rental fees as stated above as well as any damage fees to be charged to credit card, with or without imprint. Client agrees to pay any credit card charges according to the card holders agreement. I AGREE TO THE ABOVE TERMS & CONDITIONS:
    X__________________________



    Any help is much appreciated!!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Damage Fees, Customer is Disputing

    Are you sure this is actually a lawyer? Check here.

    How much money are we talking about?

    The Fair Debt Collections Practices Act does not apply to in-house collections efforts.

    If the issue is that there's confidential information on a document that you would otherwise release, have you considered sending a redacted version?

    I suggest implementing better protocols for inspecting a car at the end of a job. It may be dark outside, but flashlights are cheap.

  3. #3
    Join Date
    Feb 2010
    Posts
    15

    Default Re: Damage Fees, Customer is Disputing

    They are actul lawyers...across the state in another city, probably a friend or relative.

    I charged $800 to the clients card, which is the amount in our online contract that the client agreed to. It's going to cost about $1000 to fix properly.

    Am I legally required to send all documents to their attorney at this point?

    Is there anyway I can be liable for their attorney fees or costs other than the $800 I charged?

    I don't think this belongs in the car forum...it has to do with contracts, business disputes, and credit.

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