Plaintiffs Seek Cert. in Dollar Thrifty Unauthorized Charges Class Action

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On Oct. 22, the two named plaintiffs of the Dollar Thrifty unauthorized charges class action lawsuit asked the presiding Colorado federal judge to certify a Class of Colorado and Florida consumers who allege that the Dollar Thrifty Automotive Group Inc. reaps millions in profits by charging customers for unnecessary insurance and other services.

Plaintiffs Allen Friedman and Michael Nellis claim the car rental company Dollar Thrifty signed up their car rental customers for insurance without disclosure or consent, an alleged violation of Colorado and Florida consumer protection laws.

Friedman and Nellis supported their motion for Class certification for the Dollar unauthorized charges class action lawsuit by alleging Dollar Thrifty had a company-wide scheme to milk extra fees from car rental consumers. The Dollar Thrifty class action lawsuit claims that on the Dollar Thrifty website and in the car rental locations the company used standardized scripts and other documents to allegedly sign up consumers for add-on insurance coverage and other products that consumers did not need or have previously declined.

The plaintiffs also allege Dollar Thrifty has a company-wide standard practice of refusing to disclose the price of the extra insurance and products to car rental consumers until the purchase was complete, an alleged violation of additional Colorado and Florida consumer laws. Based on this argument, the plaintiffs believe Dollar Thrifty’s liability in these allegations must be decided on a classwide basis.

According to the Dollar unauthorized charges class action lawsuit, there are an estimated 2.5 million potential Class Members residing in Colorado and Florida who allegedly purchased add-on products from the car rental company during the Class Period. Additionally, Dollar Thrifty admitted it received more than 10,000 consumer complaints regarding the add-ons. Whether the Class consists of 2.5 million or tens of thousands, the plaintiffs argue that either size would meet the numerosity need for Class certification.

Friedman and Nellis originally filed this Dollar Thrifty class action lawsuit in September 2012, alleging that when they returned their rental vehicles to Dollar Thrifty, they discovered hundreds of dollars in additional charges for insurance and other add-on products that plaintiffs claim neither of one of them agreed to purchase.

Both plaintiffs argued that Dollar Thrifty could have easily taken precautions to provide car rental consumers with add-on cost disclosures on the websites, similar to web disclosures provided by Enterprise Rent-A-Car and Budget Rent a Car. This kind of disclosure would allow consumers to view prices of the optional add-ons and to willingly select and/or remove these add-ons before agreeing to the total rental price.

The plaintiffs are represented by Alan M. Mansfield, Joe R. Whatley, Patrick J. Sheehan and S. Scott Garrett of Whatley Kallas LLP, and John Mattes.

The Dollar Thrifty Unauthorized Charges Action Lawsuit is Dr. Allen Friedman, et al. v. Dollar Thrifty Automotive Group Inc., Case No. 1:12-cv-02432, in the U.S. District Court for District of Colorado.