House File 719 - Introduced HOUSE FILE 719 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 240) A BILL FOR An Act relating to unfair or deceptive acts or practices in the 1 rental of vehicles and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2546HV (1) 90 es/rn
H.F. 719 Section 1. Section 516D.7, subsection 8, paragraph b, Code 1 2023, is amended to read as follows: 2 b. Placing a block or charge against a portion or the 3 entirety of the credit limit of the card or otherwise placing 4 a block or charge against the card in excess of the estimated 5 total daily or weekly charges and rental deposits , including 6 taxes and charges of optional services accepted by the 7 customer, stated in the rental agreement multiplied by the 8 number of days of the estimated rental if rented on a daily 9 basis or, if rented on a weekly basis, multiplied by the number 10 of weeks of the estimated rental. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanations substance by the members of the general assembly. 14 This bill relates to unfair or deceptive acts or practices in 15 the rental of vehicles. 16 Current law provides that it is an unfair or deceptive act or 17 practice in the rental of vehicles to place a block or charge 18 against a customers credit card in excess of the estimated 19 total daily or weekly charges stated in the rental agreement 20 multiplied by the number of days of the estimated rental if 21 rented on a daily basis or, if rented on a weekly basis, 22 multiplied by the number of weeks of the estimated rental. The 23 bill modifies this provision by providing that it is an unfair 24 or deceptive act or practice for the amount of the block or 25 charge to exceed the estimated total daily or weekly charges 26 and rental deposits stated in the rental agreement. 27 A violation of Code section 516D.7 constitutes an unlawful 28 practice under Code section 714.16 (consumer fraud). Several 29 types of remedies are available if a court finds that a person 30 has committed an unlawful practice, including injunctive 31 relief, disgorgement of moneys or property, and a civil penalty 32 not to exceed $40,000 per violation. 33 -1- LSB 2546HV (1) 90 es/rn 1/ 1