Iowa Code 516D.7 – Prohibitions
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Terms Used In Iowa Code 516D.7
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
516D.7 Prohibitions.
Unfair or deceptive acts or practices in the advertisement or rental of vehicles are prohibited. Unfair or deceptive acts or practices include, but are not limited to, the following:
1. A representation connected with the advertisement or rental of a vehicle that the purchase of a collision damage waiver is mandatory.
2. Failure to provide disclosures as required by this chapter.
3. Failure to disclose in a manner likely to be noticed and comprehended in an advertisement, as defined in § 714.16, subsection 1, paragraph “”a””, the availability of a collision damage waiver, and the cost of the waiver.
4. Misrepresentation of a customer’s need for a collision damage waiver, personal accident insurance, or personal effects insurance.
5. Misrepresentation of the characteristics or availability of a reserved rental vehicle in order to rent a customer a more expensive vehicle than the one reserved.
6. Failure to provide a vehicle in the class reserved, or, if the reserved vehicle is out of stock, failure to provide another vehicle in the class reserved or a more expensive vehicle. A replacement vehicle for an out-of-stock reserved vehicle may be provided from the stock of the rental company or from another rental company but, in any event, must be provided at the rate quoted for the vehicle reserved.
7. Failure to disclose the following material restrictions, where applicable, in response to direct consumer inquiries regarding the price of renting a vehicle, when the rental company discloses a vehicle rental rate, and at the time the reservation is accepted:
a. Specific geographic restrictions and limitations, other than travel outside the continental United States.
b. Advance reservation and payment requirements.
c. The existence of penalties or higher rates that may apply for early or late returns.
d. Cost of an additional driver fee.
e. Credit or cash deposit requirements.
f. Extent of liability for damage or loss and price range of collision damage waiver.
g. Mileage limitations and charges.
8. Placement of a block against a customer’s credit limit or charge against a customer’s credit card in the following manner:
a. Placing a block or charge against a customer’s credit limit without disclosing in the rental agreement in a clear and conspicuous manner the fact that a block or charge will be placed against the customer’s credit card, and the amount of the block or charge. Such disclosure shall also be made orally whenever possible.
b. Placing a block or charge against a portion or the entirety of the credit limit of the card or otherwise placing a block or charge against the card in excess of the estimated total daily or weekly charges and rental deposits, including taxes and charges of optional services accepted by the customer, stated in the rental agreement multiplied by the number of days of the estimated rental if rented on a daily basis or, if rented on a weekly basis, multiplied by the number of weeks of the estimated rental.
c. Placing a block or charge against a customer’s credit card and then failing to clear the unused amount of the block or charge against the customer’s credit card after the customer returns the rental vehicle in the same amount of time, subject to credit card company or charge card company availability, as it took the rental company to place the block or charge against the customer’s card when the customer rented the vehicle.
d. Placing or threatening to place a block or charge on a customer’s credit card when seeking to recover any portion of a claim arising out of damage to, or loss of use of, the rental vehicle, unless, after the rental vehicle is damaged or lost, the rental company determines the exact amount of the repair or replacement costs and the customer authorizes the charge.
e. Charging an amount to a customer’s credit card for damage to, or loss of use of, a rental vehicle after the customer has left the location where the rental vehicle was returned, unless the customer has authorized the specific charge, in a specific amount, to be charged to the customer’s credit card. This subsection does not apply to a block in the amount of one dollar obtained for authorized charge amounts.
§516D.7, RENTAL OF MOTOR VEHICLES 2
Unfair or deceptive acts or practices in the advertisement or rental of vehicles are prohibited. Unfair or deceptive acts or practices include, but are not limited to, the following:
1. A representation connected with the advertisement or rental of a vehicle that the purchase of a collision damage waiver is mandatory.
2. Failure to provide disclosures as required by this chapter.
3. Failure to disclose in a manner likely to be noticed and comprehended in an advertisement, as defined in § 714.16, subsection 1, paragraph “”a””, the availability of a collision damage waiver, and the cost of the waiver.
4. Misrepresentation of a customer’s need for a collision damage waiver, personal accident insurance, or personal effects insurance.
5. Misrepresentation of the characteristics or availability of a reserved rental vehicle in order to rent a customer a more expensive vehicle than the one reserved.
6. Failure to provide a vehicle in the class reserved, or, if the reserved vehicle is out of stock, failure to provide another vehicle in the class reserved or a more expensive vehicle. A replacement vehicle for an out-of-stock reserved vehicle may be provided from the stock of the rental company or from another rental company but, in any event, must be provided at the rate quoted for the vehicle reserved.
7. Failure to disclose the following material restrictions, where applicable, in response to direct consumer inquiries regarding the price of renting a vehicle, when the rental company discloses a vehicle rental rate, and at the time the reservation is accepted:
a. Specific geographic restrictions and limitations, other than travel outside the continental United States.
b. Advance reservation and payment requirements.
c. The existence of penalties or higher rates that may apply for early or late returns.
d. Cost of an additional driver fee.
e. Credit or cash deposit requirements.
f. Extent of liability for damage or loss and price range of collision damage waiver.
g. Mileage limitations and charges.
8. Placement of a block against a customer’s credit limit or charge against a customer’s credit card in the following manner:
a. Placing a block or charge against a customer’s credit limit without disclosing in the rental agreement in a clear and conspicuous manner the fact that a block or charge will be placed against the customer’s credit card, and the amount of the block or charge. Such disclosure shall also be made orally whenever possible.
b. Placing a block or charge against a portion or the entirety of the credit limit of the card or otherwise placing a block or charge against the card in excess of the estimated total daily or weekly charges and rental deposits, including taxes and charges of optional services accepted by the customer, stated in the rental agreement multiplied by the number of days of the estimated rental if rented on a daily basis or, if rented on a weekly basis, multiplied by the number of weeks of the estimated rental.
c. Placing a block or charge against a customer’s credit card and then failing to clear the unused amount of the block or charge against the customer’s credit card after the customer returns the rental vehicle in the same amount of time, subject to credit card company or charge card company availability, as it took the rental company to place the block or charge against the customer’s card when the customer rented the vehicle.
d. Placing or threatening to place a block or charge on a customer’s credit card when seeking to recover any portion of a claim arising out of damage to, or loss of use of, the rental vehicle, unless, after the rental vehicle is damaged or lost, the rental company determines the exact amount of the repair or replacement costs and the customer authorizes the charge.
e. Charging an amount to a customer’s credit card for damage to, or loss of use of, a rental vehicle after the customer has left the location where the rental vehicle was returned, unless the customer has authorized the specific charge, in a specific amount, to be charged to the customer’s credit card. This subsection does not apply to a block in the amount of one dollar obtained for authorized charge amounts.
§516D.7, RENTAL OF MOTOR VEHICLES 2
9. Assessment of additional driver fees for licensed drivers who are spouses or business associates engaged in business activities with the customer to whom the vehicle is rented, other than charges for a person who does not satisfy the rental company’s minimum age requirement, if applicable.
91 Acts, ch 204, §7; 2023 Acts, ch 166, §1
Subsection 8, paragraph b amended