House File 719 - IntroducedA Bill ForAn Act 1relating to unfair or deceptive acts or practices in the
2rental of vehicles and making penalties applicable.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 516D.7, subsection 8, paragraph b, Code
22023, is amended to read as follows:
   3b.  Placing a block or charge against a portion or the
4entirety of the credit limit of the card or otherwise placing
5a block or charge against the card in excess of the estimated
6total daily or weekly charges and rental deposits, including
7taxes and charges of optional services accepted by the
8customer, stated in the rental agreement multiplied by the
9number of days of the estimated rental if rented on a daily
10basis or, if rented on a weekly basis, multiplied by the number
11of weeks of the estimated rental.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
   15This bill relates to unfair or deceptive acts or practices in
16the rental of vehicles.
   17Current law provides that it is an unfair or deceptive act or
18practice in the rental of vehicles to place a block or charge
19against a customer’s credit card in excess of the estimated
20total daily or weekly charges stated in the rental agreement
21multiplied by the number of days of the estimated rental if
22rented on a daily basis or, if rented on a weekly basis,
23multiplied by the number of weeks of the estimated rental. The
24bill modifies this provision by providing that it is an unfair
25or deceptive act or practice for the amount of the block or
26charge to exceed the estimated total daily or weekly charges
27and rental deposits stated in the rental agreement.
   28A violation of Code section 516D.7 constitutes an unlawful
29practice under Code section 714.16 (consumer fraud). Several
30types of remedies are available if a court finds that a person
31has committed an unlawful practice, including injunctive
32relief, disgorgement of moneys or property, and a civil penalty
33not to exceed $40,000 per violation.
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