Auto Europe, LLC Reaches $300,000 Settlement With Car Renters For Failing to Disclose Value Added Taxes |
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The parties have reached a tentative settlement apparently valued at $300,000 in a class action against car rental booking agency Auto Europe, LLC on behalf of all persons who rented cars for use in Europe either directly from the company or through a travel agent, during the period July 1, 1998, through June 30, 2001. The action alleges that Auto Europe rented cars to consumers for use in Europe and misled them by failing to properly disclose the amount of Value Added Tax (VAT) that the consumers were being charged, in violation of the Illinois Consumer Fraud Act. To participate in the settlement, claimants must submit a proof of claim form on or before January 13, 2004.
Each claimant will receive a coupon for $10 off any future European car rental booked directly with Auto Europe prior to December 31, 2005. There are no other restrictions on the coupons. Persons who received a car rental through Auto Europe as a part of a travel package are not eligible to take part in this settlement. Proof of claim forms may be found at the settlement website.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for October 20, 2003.
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Other Automotive Cases of Interest
If you are thinking about leasing a vehicle, or don't know if you should lease, please look into the pros and cons very carefully before making your decision. A Florida class action has been filed against auto financing company BMW Financial Services NA, LLC, on behalf of vehicle lessees who allege that the company charged them "taxes" that were actually just hidden fees to cover wear and tear, and excess mileage on the vehicles, in violation of Florida consumer protection laws and the federal Consumer Leasing Act. State Farm, the nation's largest auto insurer, continued to resell thousands of vehicles nationwide without disclosing they had been in wrecks even though the company had agreed years earlier to stop the practice. The company announced it would pay $40 million to owners of thousands of totaled vehicles that State Farm had sold without state salvage titles, as required by law. The company says the practice was a mistake. The unfortunate practice of insurance credit scoring is legal under federal law, with some limitations. Four similar class actions have been filed against auto insurance provider Progressive Corporation and related companies on behalf of policyholders who allege that the insurers do not advise them that it uses their credit reports in deciding to force them to pay higher premiums than others, in violation of the federal Equal Credit Opportunity and Fair Credit Reporting acts.
Kahn Gauthier Swick is investigating possible legal actions on behalf of persons injured or killed in motor vehicle accidents. Over 41,000 people are killed in motor vehicle accidents in the United States every year. Alton, Illinois plaintiff’s attorney Lanny Darr filed suit July 11, 2005 against Affirmative Insurance Company because it would only reimburse him $18.90 per day for a rental vehicle. Darr claims he was involved in an auto accident Feb. 14, 2005 with a driver, who was negligent and insured by Affirmative.
“Affirmative refused to lease a vehicle for Darr and failed to reimburse for an amount greater than $18.90 per day, which is illegal under Illinois law,” the complaint states. Darr claims he could not drive his Ford Explorer for several days while it was being repaired.
A nationwide class action has been filed against Carfax, Inc., on behalf of consumers who used the company's service from October 1998 to the present. The action alleges that the company misleads customers into believing that its car title searches are nationwide, in violation of the Ohio Sales Practices Act.
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