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ATV damage deposit taken by unscrupulous merchant

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onthehook4

Junior Member
What is the name of your state (only U.S. law)? NC

What is the name of your state (only U.S. law)? NC

I'm wondering about my chances for successfully recouping the security deposit charged in the scenario detailed below...this is how I detailed the situation in my complaint to the Better Business Bureau. Of course I signed a contract accepting responsibility for damage caused by my group, but the machine stopped working within 40 mins, had seemed iffy from the start, and couldn't have been damaged by us. Names not included...

Consumer's Original Complaint :
This business is engaging in fraudulent collection of security deposits made to cover damage to ATV rentals at (location withheld).
I rented two ATVs from (name withheld) for a half day on Sunday, May 19. The total paid at the time for the machines and helmets was $425, plus an additional $20 cash for gas at the end of our rental. There was an $800 deposit on each ATV, all charges (with the exception of gas) were to my credit card, and I signed the contract accepting responsibility for any damages we caused. However, based on how events unfolded, I believe this business operates dishonestly, and charges customers for damages they did not cause, particularly female renters, as we are assumed to know less about mechanics. (Name withheld) related a story to me as I was reviewing the paperwork pre-rental that suggests to me he has previously bilked other female customers for damages, and in hindsight, it seems as though the story he told me about a female member of the Air Force who was brought to tears when he charged her a large sum of money for damages was part of a setup.

One of the two machines was difficult to get into gear from the beginning, but it worked for about 45 mins of riding - which consisted of two groups of two people for about 20 mins each, with a male driving and a female riding tandem in each case; all riders were still getting used to riding period, and there was nothing at all fast, hard, or reckless about our operation of the machines - quite the opposite, as the males driving were exceptionally cautious at the request of the females riding with them on each machine. (Two more people from our group always waited at our vehicles while the others were out)

After only 45 mins or so, the larger machine stopping working; it would run but absolutely would not go into gear (the clutch had gone out) and therefore wouldn't move. We had to return with the working machine to the rental shed, lead (name withheld) to the spot where the broken one was stuck, ride it in as he towed it back to the shed, and go through the process of inspecting the outward appearance of a replacement machine. When we returned to the shed and explained the malfunction, (name withheld) said it was pretty obviously a worn-out clutch, just wear and tear, nothing we had done. So we set off with the replacement machine and finished our day. When we returned with the two ATVs, (name withheld)'s story had changed; now it was a cracked engine casing, and he'd have a technician examine it and get back to me. Of course, at no point in the day did we have the opportunity to inspect the internal workings of the machine, before or after the breakdown.

Several days later, I began receiving messages that 'we needed to talk' as a result of the technician's inspection. We played phone tag for a couple days (I work at a location that doesn't permit us to bring personal cell phones to work for security reasons, so I am hard to reach during the work week). Despite not yet having a conversation with me, he went ahead and charged the $800 from my credit card that had only been 'authorized' previously. When we spoke by phone, he suggested that the damage would've been caused by shifting a machine from low to high gear without stopping; I assured him neither of the two people who drove that machine did any such thing...they were two guys (one of whom owns an ATV) familiar with engines, etc to know that doing so would probably cause the machine to flip over or something similarly dangerous. I've also learned from a number of other ATV-knowledgeable people that such damage is more likely to be caused by improper fluid levels in the machines, for instance, not having enough oil in them.

In short, I feel as though (name withheld) either intentionally rents dodgy machines and then charges exorbitantly to people because they've signed a contract, or just doesn't follow good maintenance procedures to make certain the machines are in good working order, and then covers his tracks by making customers pay for repairs. My group did absolutely, positively nothing to damage his machine.

Consumer's Desired Resolution:
I have since learned that this business has been asked to vacate the property it rents from (location withheld) because of the number of complaints about its business practices it has received(this can be confirmed by (location withheld) owner (name withheld at (phone withheld), and I am seeking a refund of the $800 deposit charged to my credit card, plus a refund of the rental time I paid for but could not use because we were given a machine that wasn't functioning properly. We simply didn't even have the machines long enough to have caused the type of damage he is alleging, nor did we do what he alleges caused the damage. I hope that he is prevented from duping other customers into signing contracts that put them on the hook for charges completely at his discretion. Having acquired a person's signature on a contract should not be carte blanche to steal that person's money. The five people who were at (location withheld) that day will be happy to provide any additional information that you require. I hope to avoid making this a legal dispute with (name withheld), but will pursue that if necessary. Many thanks for your time.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? NC

What is the name of your state (only U.S. law)? NC

I'm wondering about my chances for successfully recouping the security deposit charged in the scenario detailed below...this is how I detailed the situation in my complaint to the Better Business Bureau. Of course I signed a contract accepting responsibility for damage caused by my group, but the machine stopped working within 40 mins, had seemed iffy from the start, and couldn't have been damaged by us. Names not included...

Consumer's Original Complaint :
This business is engaging in fraudulent collection of security deposits made to cover damage to ATV rentals at (location withheld).
I rented two ATVs from (name withheld) for a half day on Sunday, May 19. The total paid at the time for the machines and helmets was $425, plus an additional $20 cash for gas at the end of our rental. There was an $800 deposit on each ATV, all charges (with the exception of gas) were to my credit card, and I signed the contract accepting responsibility for any damages we caused. However, based on how events unfolded, I believe this business operates dishonestly, and charges customers for damages they did not cause, particularly female renters, as we are assumed to know less about mechanics. (Name withheld) related a story to me as I was reviewing the paperwork pre-rental that suggests to me he has previously bilked other female customers for damages, and in hindsight, it seems as though the story he told me about a female member of the Air Force who was brought to tears when he charged her a large sum of money for damages was part of a setup.

One of the two machines was difficult to get into gear from the beginning, but it worked for about 45 mins of riding - which consisted of two groups of two people for about 20 mins each, with a male driving and a female riding tandem in each case; all riders were still getting used to riding period, and there was nothing at all fast, hard, or reckless about our operation of the machines - quite the opposite, as the males driving were exceptionally cautious at the request of the females riding with them on each machine. (Two more people from our group always waited at our vehicles while the others were out)

After only 45 mins or so, the larger machine stopping working; it would run but absolutely would not go into gear (the clutch had gone out) and therefore wouldn't move. We had to return with the working machine to the rental shed, lead (name withheld) to the spot where the broken one was stuck, ride it in as he towed it back to the shed, and go through the process of inspecting the outward appearance of a replacement machine. When we returned to the shed and explained the malfunction, (name withheld) said it was pretty obviously a worn-out clutch, just wear and tear, nothing we had done. So we set off with the replacement machine and finished our day. When we returned with the two ATVs, (name withheld)'s story had changed; now it was a cracked engine casing, and he'd have a technician examine it and get back to me. Of course, at no point in the day did we have the opportunity to inspect the internal workings of the machine, before or after the breakdown.

Several days later, I began receiving messages that 'we needed to talk' as a result of the technician's inspection. We played phone tag for a couple days (I work at a location that doesn't permit us to bring personal cell phones to work for security reasons, so I am hard to reach during the work week). Despite not yet having a conversation with me, he went ahead and charged the $800 from my credit card that had only been 'authorized' previously. When we spoke by phone, he suggested that the damage would've been caused by shifting a machine from low to high gear without stopping; I assured him neither of the two people who drove that machine did any such thing...they were two guys (one of whom owns an ATV) familiar with engines, etc to know that doing so would probably cause the machine to flip over or something similarly dangerous. I've also learned from a number of other ATV-knowledgeable people that such damage is more likely to be caused by improper fluid levels in the machines, for instance, not having enough oil in them.

In short, I feel as though (name withheld) either intentionally rents dodgy machines and then charges exorbitantly to people because they've signed a contract, or just doesn't follow good maintenance procedures to make certain the machines are in good working order, and then covers his tracks by making customers pay for repairs. My group did absolutely, positively nothing to damage his machine.

Consumer's Desired Resolution:
I have since learned that this business has been asked to vacate the property it rents from (location withheld) because of the number of complaints about its business practices it has received(this can be confirmed by (location withheld) owner (name withheld at (phone withheld), and I am seeking a refund of the $800 deposit charged to my credit card, plus a refund of the rental time I paid for but could not use because we were given a machine that wasn't functioning properly. We simply didn't even have the machines long enough to have caused the type of damage he is alleging, nor did we do what he alleges caused the damage. I hope that he is prevented from duping other customers into signing contracts that put them on the hook for charges completely at his discretion. Having acquired a person's signature on a contract should not be carte blanche to steal that person's money. The five people who were at (location withheld) that day will be happy to provide any additional information that you require. I hope to avoid making this a legal dispute with (name withheld), but will pursue that if necessary. Many thanks for your time.
Have you tried disputing the charge with your credit card company?
 

OHRoadwarrior

Senior Member
Have you tried going back in person to look at the disassembled machine and its damage? Otherwise, you kind of elected to accept the charges with no proof to the contrary. A man could be just as foolish.
 

onthehook4

Junior Member
Time for a chargeback!

Please tell me you paid with a credit card and not a debit card.....
I did pay with a credit card, and have tried to disputing the charge. The card company is only concerned about the fact that the security deposit had been authorized prior to using the ATVs; they aren't interested in the fact that my group didn't cause the damage the merchant alleges, or that there have been other complaints about his charges. I strongly suspect that the drive clutch (and perhaps more) was already in bad shape and that he rents machines knowing full well they are likely to stop working while in use by a customer who has paid a security deposit, then blames the customer and just produces the signed contract. When I signed a contract, I signed it to accept responsibility only for damage we caused, not to pay for whatever was already wrong with his machine, but it is quite a scam and leaves people between a rock and a hard place.
 

swalsh411

Senior Member
They should be asking the merchant to show evidence of the damage to back up the charge made to the card.
 

Zigner

Senior Member, Non-Attorney
The charge for the deposit was authorized on the card. There is no dispute about the merchant being allowed to charge a security deposit and that is why a charge-back won't be successful. The dispute is whether or not the vendor gets to keep the deposit, not whether he's entitled to charge the deposit.

There were several inexperienced riders (male & female) on the machines. I suggest that, if possible, the OP have her own mechanic inspect the damage. Not just give an opinion based on "this is what they said". Actually go and look at it.
 

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