CBS Investigation: Customers Say They Were Scammed For Insurance Coverage When …

LOS ANGELES (CBSLA.com) — If we hunt Dollar Rent A Car on Yelp, we will find reviews identical to this: “Do not lease a car. They will fraud you.”

Another examination reads: “Lying Agent. When we forked out that we did not wish a insurance, he blatantly lied and pronounced that CA law requires consumers to squeeze insurance.”

Erik Bochove said that’s what he was told when he trafficked to Los Angeles from New Mexico for a wedding.

“I asked if that was imperative given we was entirely already lonesome by my possess insurance,” Bochove said.

But he pronounced an representative during a Dollar during LAX insisted that he bought additional coverage. So, Bochove purchased about $100 in coverage he pronounced he did not want. That’s some-more than what he paid for a automobile itself.

Armed with a dark camera, a writer operative with CBS2/KCAL9 Investigative Reporter David Goldstein went to a Dollar bureau during LAX to inquire.

She asked either she had to buy additional word even when she already had her own. The representative said: “You can use your liability, ma’am. But a one we suggest is a state repairs waiver.”

A “Loss Damage Waiver” or LDW is an insurance-like product that might good be lonesome by your possess insurance.

“That way, if anything happens to a car, we fundamentally travel divided with zero to pay, any scratches, any dents if somebody hits a car,” a representative continued.  Goldstein’s writer said: “No, we don’t consider we need that.”

But a representative was persistent. “It’s usually $11 a day. Saves we a lot of headaches if anything happens to a car,” she insisted.

John Mattes is an profession and consumer advocate. “They work on a elect basis. If they don’t make X volume of upsells, they can be terminated,” he said.

Even yet a representative did eventually concur it was our producer’s choice, Mattes pronounced she violated state law since she didn’t complete a sorcery difference compulsory in any transaction: “It may transcribe what we already have.” Mattes said: “The phrasing is combined by a state Legislature.”

A class-action lawsuit filed in California alleges that for a past 4 years, Dollar has abandoned California law to “victimize consumers ensuing in a loss of income to consumers” to a balance of  “millions in fees” national and beyond. A identical censure is filed in Colorado.

California law also requires the customer’s signature to endorse that a representative told them that coverage could transcribe their own. It’s something that representative did not do and something that might be tough to find in a seven-page let receipt.

With his camera rolling, Goldstein went to pronounce to a Dollar representative who helped his producer. “You never sensitive her she didn’t have to get insurance. That’s a defilement of state law.” But a representative refused to speak about a matter. So did her manager, who referred Goldstein to a company’s media family department.

Goldstein called Hertz, a primogenitor association for Dollar, that supposing a following statement:

“We sight and conduct a employees to approve with all state laws and to accommodate a top reliable standards. Our process in California is to yield avowal about a detriment repairs waiver (LDW) product in several ways for any let transaction, including verbally during a counter, in a created let agreement, and by on-site signage. We apologize if any consumer in a state was not supposing with a written avowal that LDW might be partially or entirely duplicative of identical word accessible by their personal insurance, credit label or other sources. We will take this event to remind all of a employees in California to follow a policies and approve with state law.”

But this is not a initial time Dollar has been in difficulty for this kind of behavior.  In 1989, a association was fined $100,000 for “false and dubious statements” for pressuring business to buy detriment repairs waivers, a kind of behavior similar to what a association is indicted of 26 years later.

Bochove filed a censure with a Better Business Bureau claiming Dollar took advantage of him and thousands of other gullible consumers, according to a class-action lawsuits. The Better Business Bureau was means to negotiate a $99 credit for Bochove.

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