Restrictions on recovery for damages to leased car by placing block or processing charge on lessee’s credit card; unfair, deceptive or coercive conduct prohibited.

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1. A short-term lessor of a passenger car shall not seek to recover any portion of a claim arising out of damage to or loss of a leased passenger car by causing any block to be placed on the lessee’s credit card account.

2. A short-term lessor of a passenger car shall not process a charge on a short-term lessee’s credit card to pay for any damages to a passenger car leased by the lessee unless the lessor first:

(a) Obtains the written consent of the lessee, on a form that is separate from the form for the lease, to pay for the damages by processing a charge on the lessee’s credit card;

(b) Inspects the vehicle upon its return to the lessor to verify the extent of the damages; and

(c) Provides the lessee with a written estimate of the cost to repair the damages and the lessee provides the lessor with written authorization to pay for the damages by processing a charge on the lessee’s credit card in an amount that does not exceed the amount of the written estimate.

The lessee may waive the provisions of paragraph (c) if the inspection conducted pursuant to paragraph (b) indicates that the cost to repair the damages will not exceed $500 and the lessee provides the lessor with written authorization to pay for the damages by processing a charge on the lessee’s credit card in an amount that does not exceed $500.

3. A short-term lessor of a passenger car shall not engage in any unfair, deceptive or coercive tactics in attempting to recover or in recovering on any claim arising out of damage to or loss of a passenger car.

(Added to NRS by 1989, 1622; A 1991, 1333)


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