Collision Damage Waiver Money Back

[friedice]

California

Here's a situation of someone I know. He rented a car and got into accident which wasn't his fault. So he applied for a Collision Damage Waiver Program which is provided by one of the credit cards. They sent him a check for the amount of damage. However, the other party's insurance paid the Car Rental the amount of damage as well. The insurance provider of the benefit for the credit card found out about that and is now requesting that check back. So what are the implications of not returning the check? After all, that was a benefit provided by the credit card company. It doesn't make sense that they're taking away that benefit. Does the benefit provider have reasonable grounds to sue? Can the person keep the check? In that CDW program there was no mention of having to return anything in any of the circumstances.

 

[racer72]

A benefit does not mean he can profit from the accident. He can return the money or it will added to a future credit card statement, it his choice.

 

[friedice]

Can they really add to a credit card statement something that wasn't a credit card purchase? They're not even a credit card company; they are some big insurance company that pays out benefits for the card... His argument is that, it is non of their concern if he found an alternative means of paying, because after all the payment is his responsibility and it is up to him how he comes up with it. Then he says, if his grandma or Bill Gates paid for the damages, and they found out would he have to return the check too? I'm no laywer, but he makes logical sense to me.

 

[Texas Pooh]

OP,

You are kidding, right? You and your friend don't honestly think that your friend is going to make money on this situation, do you?

The CDW benefit is so that your friend can pay for the damages to the car, and doesn't get sued by the car rental company for the damages to the car (for which he would be responsible unless there was (a) other insurance or (b) the CDW).

In this case, the car damage was apparently paid for by the other insurance company. Thus, your friend is not at risk of being held liable for the damages. Thus he has no need of the CDW.

Not only does the credit card company have the right to recover the money paid out to you or your friend by a charge on the credit card (I'll bet without looking that it says so in the fine print for the credit card and/or the CDW program) but you and your friend have a bigger problem: keeping the money is fraud, and, depending on the amount, may expose the person who keeps it to criminal charges.