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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10639
Experience:  30 years of corporate, litigation and international law
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I just opened a boat rental company. With this company I

Customer Question

I just opened a boat rental company. With this company I provide renters insurance at different deductibles. Once the renter picks a deductable I require a payment for the insurance coverage and then the deposit amount of the deductable.
I rent the boat they get the $2,000.00 deductable. I authorize it to their card. the boat comes back that same day with $6,000.00 dollars in damage. I take the $2,000.00 and then the card company takes it back because they say I can't use the deposit for that.
Is this true or is there a code of law that helps out watercraft rental companies against credit card companies.
Submitted: 4 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 4 years ago.
bizlaw :

The deposit is for the return of the boat in good condition is that correct? On your example, the insurance company is paying $4,000 of the cost of repair and the customer is paying the $2,000 deductible is that correct? Do you charge the $2,000 against the card at the time of the deposit?