Delaware Senate approves restrictions on unfair Loss of Use fees
HB 209 implements certain consumer protections for rental car customers
(Photo courtesy: DE Senate legislative meeting livestream)
Dover, DE- Delaware's Senate has taken a stand against an abusive fee imposed on rental car consumers, with the passage of House Bill 209. This crucial measure, sponsored by Delaware state Senator Nicole Poore and Representative Larry Lambert, aims to shield constituents from the murky world of "loss of use" fees, a common tactic used by rental car companies to extract unfair charges from customers.
The bill's journey to success saw support in the Senate early last week, following endorsement by the House of Representatives nearly a year ago. It also comes with an important new amendment that ensures rental and car sharing companies can only recover loss of use damages from extremely negligent third parties, while still protecting renters in Delaware from the fee.
[Related read: Delaware House approved consumer protection rules for rental car customers. What’s next?]
Under current regulations, rental car companies in Delaware can levy "loss of use" fees on customers for periods when vehicles are undergoing repairs due to damage incurred during rentals. However, these fees are often shrouded in ambiguity within rental agreements, leaving customers vulnerable to exploitation.
Reports from reputable news outlets like NBC and USA Today have exposed egregious instances where customers have been charged exorbitant fees for extended periods, sometimes even beyond a year. Adding insult to injury, many insurance companies refuse to cover these loss of use fees, leaving consumers to bear the burden.
The passage of HB 209 signals a move towards greater consumer protection, similar to actions taken by three other states in the U.S. that have already banned such fees, with nine others implementing limits on loss of use fees.
With HB 209 now awaiting the Governor’s signature, Delaware stands poised to join the ranks of states championing consumer rights. Until then, those seeking a fair deal in car rentals can turn to alternatives like Turo, where loss of use fees are non-existent.
Delaware's bold step underscores a commitment to fairness and transparency in the rental car industry, setting a precedent for other states to follow suit.