Thrifty wants $2750 for diminished value

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Jul 13, 2017
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My Thrifty rental had hail damage and basically they charged me over $11,000 for damage, administration fee, loss of use, and diminished value. Visa paid everything (with no documentation provided by Thrifty) except for the Admin fee of $500.00, loss of use $750, and diminished value of $2750. So I followed the advice here and started requesting the documentation going up the chain of command. After the 3rd email I got an email from Thrifty offering to close the claim if I pay $700.00 - instead of the $4000.00 they originally wanted.
My question is should I pay this reduced amount? Part of me feels that they got a lot more than the damage done on the car, but part of me just wants to move on with my life.
My other question is how do I ensure they will close this out if I do pay?
Thanks in advance.
 
Feb 9, 2016
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If your insurance company paid out on the claim they have also obtained a release of liability from Thrifty that prohibits Thrifty from coming back to them asking for more money, for any other reason. Your insurance company represented you & your interests in this situation, therefore the release of liability covers you as well.

Call up your insurance company and ask for a copy of that release of liability. when you get it, send a copy of it to thrifty with a note that they settled with your insurance representative and therefore do not have further claim against you.

if your insurance company did not obtain a release of liability, they have been grossly negligent and you need to ask them how THEY are going to handle these additional claims from Thrifty.
 
Jul 13, 2017
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Yes, sorry I should have mentioned. My insurance (Visa) did not get a release of liability, in fact they didn't get pictures of damage nor did they get a paid receipt for the work done for the damages. We requested Visa to send these 3 documents and they said they didn't have them and so then Visa emailed Thrifty to send these 3 documents. That's when Thrifty sent me the settlement amount of $700.00 instead of $4,000.00. Thrifty said they were doing this as a "courtesy" to me. I have emailed Thrifty to send a revised statement for the sum of $700.00 before I would pay.
Should I forward that to Visa for payment?
 
Jul 13, 2017
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I will add this to my last post. This claim was for hail damage, and unfortunately I did not take the photos because I never had a bad experience renting a car before. The damage was hardly noticeable but Visa has paid Thrifty $6,876.17 to date. What has taken me by surprise is that this was paid with no photos and no paid receipt for fixing the damage.
 

Neil Maley

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Dec 27, 2014
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www.promalvacations.com
Try forwarding the $700 to Visa for payment. Shame on them for not getting the release - that was their job.

Another question - did this happen in the U.S? If your credit card didn't offer rental car insurance you would have had to put the claim through to your own insurance company
 
Jul 13, 2017
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Thanks, I will try forwarding to Visa. Yes, this happened in the U.S. and I had already made sure prior to renting the car that Visa would cover.
Thanks for all your help.
I did want to note here that due to your excellent advice my "bill" was reduced from $4,000.00 to $700.00. So you are great help and resource for the unsuspecting consumer. Thanks again.
 
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Take it up in a BIG way with Visa. Let them know that they aregreed to act as an insurer on your behalf and if you would have known they weren't going to cover you in all aspects you would have taken it to your own car insurance company. Ask Visa to pay the money owned or negotiate the claim to zero.
 
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@Andie

Note that I would still hand this back to your insurer for them to deal with since they forgot insurance 101 - getting a release of liability.

However, once upon a time we had a lawyer offering advice on these forums. He would specifically comment on car rental issues. Here are this thoughts on the rental company trying to get additional monies from you after your insurance has paid.

Step one is to find out if Thrifty asked for these costs to be paid from your insurer and if your insurer rejected those bills.

The letter Joe said to send if the car rental company tries to come back and get those additional fees


"I reject your claim for additional damages. I invite you to sue me for the difference you claim since that is the only way I will pay. As I have previously noted, you have not proven the loss of use or diminution of value to a preponderance of the evidence. This is the reason that my insurance has refused to pay you. Sending a demand with a dollar number is not evidence. It is your conclusion as to reduced value.
"I remind you yet again that the rental agreement contains a mutual attorneys fee clause. And if you are not successful I will seek recovery of my attorneys fees. Your adamant refusal to provide actual evidence of loss of use by providing utilization logs, repair records and purchase cost, and how you computed diminution of value means you will not recover these damages simply from your refusal to provide the evidence.
"I specifically deny that I have damaged you in excess of the amounts paid to date. I invoke all rights under the Fair Credit Billing and Collection Act and demand that you cease further contact. If you wish to sue me, you know where to find me."
 
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Joe's suggested response to a car rental company trying to get a diminished value payment

Dear Purco:
We deny your claim since you cannot prove damages. The vehicle is already a rental and has diminished value the result of being used in fleet operations. Evidence of bad faith is a lack of adjustment for that part of the claim at the outset.


(what joe is saying is, within their claim of diminished value, do you see an adjustment for diminished value due to the fact that this is a rental car? If you dont, this diminished value claim was written in bad faith)

We deny we have damaged Budget in excess of the value of the repairs, which have already been paid.

We rely on the decision of our insurance company to deny your claim for further damages. We contend we owe you and your principal zero further damages. We revoke any consent to charge our credit card previously given.

We remind you that the contract contains an attorneys fee clause which is made mutual by the laws of both Hawaii and our state of residence. You cannot prove diminution of value nor can you prove loss of use damages, thus, we deny owe you anything. The contact provides for payment of those damages if you can prove them to a preponderance of the evidence. Our insurance carrier rejected your claim, which proves to us your further claims are without merit.

If you wish to sue us, please do so, in this manner we can resolve this claim. I remind Purco once again that we will seek full indemnification if you bring a further claim and are unsuccessful.
 
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My Thrifty rental had hail damage and basically they charged me over $11,000 for damage, administration fee, loss of use, and diminished value. Visa paid everything (with no documentation provided by Thrifty) except for the Admin fee of $500.00, loss of use $750, and diminished value of $2750. So I followed the advice here and started requesting the documentation going up the chain of command. After the 3rd email I got an email from Thrifty offering to close the claim if I pay $700.00 - instead of the $4000.00 they originally wanted.
My question is should I pay this reduced amount? Part of me feels that they got a lot more than the damage done on the car, but part of me just wants to move on with my life.
My other question is how do I ensure they will close this out if I do pay?
Thanks in advance.


I have a case right now in the local county court seeking diminished value against, of all things, a body repair shop that wrecked my client's car doing a test drive. The repairs exceed $11,000.00--all the sheet metal from the windshield forward had to be replaced and thankfully there appeared to be no structural nor mechanical damage. The diminished value was appraised by an expert at $9,500.00.

Very few cases on this issue have been decided because the amount is usually inadequate to get into the "big court" and is tried in the "small claims division"; however, the "repair, replace or pay in cash" canon of the usual automobile policy is being challenged as repair costs sky rocket, and concomitantly, the value of a wrecked and repaired car is reduced from the usual fair market value.

Another writer noted the "prevailing party" attorney's fee rule in the rental contracts. That is true, but if you don't hire a lawyer, you cannot collect those fees if you prevail. The case is not what we lawyers call a "fee generating case" like a personal injury matter, so you will probably have to front the fees going in.

Good Luck.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
23,461
23,421
113
New York
www.promalvacations.com
I have a case right now in the local county court seeking diminished value against, of all things, a body repair shop that wrecked my client's car doing a test drive. The repairs exceed $11,000.00--all the sheet metal from the windshield forward had to be replaced and thankfully there appeared to be no structural nor mechanical damage. The diminished value was appraised by an expert at $9,500.00.

Very few cases on this issue have been decided because the amount is usually inadequate to get into the "big court" and is tried in the "small claims division"; however, the "repair, replace or pay in cash" canon of the usual automobile policy is being challenged as repair costs sky rocket, and concomitantly, the value of a wrecked and repaired car is reduced from the usual fair market value.

Another writer noted the "prevailing party" attorney's fee rule in the rental contracts. That is true, but if you don't hire a lawyer, you cannot collect those fees if you prevail. The case is not what we lawyers call a "fee generating case" like a personal injury matter, so you will probably have to front the fees going in.

Good Luck.
Please continue to read our cases and offer opinions. This is very helpful for us- thank you.
 
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