Santa Clara, CA: Ace American Insurance Co., is facing an unfair business practices class action lawsuit over allegations it imposes sales tax and hidden charges on customers who choose to purchase insurance when renting cars at Florida airports.
Filed by plaintiff Stephen Morgan, the suit claims that Morgan reserved a rental vehicle through Avis Rent A Car at the Jacksonville International Airport. The rental contract was for three days and Morgan claims the advertised rate for optional insurance coverage for that period was $64.14. However, Morgan was also charged an 11.11 percent airport concession recovery fee, on top of the cost of the insurance. According to the suit, the rental receipt "cryptically"fails to disclose information about the airport concession recovery fee and includes no information regarding this fee being added to the cost of insurance.
While Airport concession recovery fees (or CRFs) are frequently added to the price of car rentals and other services offered at airports, Morgan claims: "This action does not challenge charging fees (such as CRF) for mere overhead recovery. But this action does challenge Defendant adding CRF to the advertised rates and rates specified in the policy and fixed by the insurer for Optional Insurance coverages, and thereby violating Florida law and unfairly overcharging its customers."
Morgan asserts in the complaint, that he was overcharged, "both because Defendant unfairly imposed a CRF and sales tax on the increased price of the optional insurance products, and because Defendant deceptively and unfairly misrepresented the actual cost of the optional insurance."
Morgan seeks to represent a Class of consumers who purchased optional insurance on a rental car from an appointed agent of Ace American Insurance and who incurred additional charges and/or sales tax in excess of the advertised premiums specified by the company for the optional insurance coverage.
The class action lawsuit alleges claims of unjust enrichment, breach of contract, disgorgement and restitution, intentional and/or negligent overcharge of premiums and sales tax, and violations of the Florida Deceptive and Unfair Trade Practices Act.
Morgan is represented by Edmund A. Normand of Normand Law PLLC. The Ace American Insurance Hidden Fees Class Action Lawsuit is Stephen Morgan v. Ace American Insurance Co., Case No. 3:16-cv-00705, in the U.S. District Court for the Middle District of Florida.
