Settlement Reached with Panama City Beach Rental Business

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Attorney General Pam Bondi’s Office has reached a settlement with a Panama City Beach business that rents scooters, golf carts and motorcycles and allegedly charged consumers for damage they did not incur. Classy Cycles, Inc., owned by Colleen Swab and Rich R. Roof, operates out of five locations on Panama City Beach and rents vehicles on an hourly or daily basis.

According to the complaint filed simultaneously with the stipulated judgment, Classy Cycles retained consumers’ deposits without adequate justification and charged consumers’ accounts for damages they did not cause and for unnecessary repairs or replacement parts.

The stipulated judgment prohibits the defendants from telling consumers that they are obligated to pay for damage to rented vehicles when the consumer did not damage the vehicle or when the damage is due to normal wear and tear. The agreement also requires Classy Cycles to return consumers’ deposits for rentals unless the company can document that the consumers are at fault.

As part of the settlement agreement, Classy Cycles’ rental contract must clearly and conspicuously disclose specifics about the deposit, property damage coverage, how long a vehicle can run without being recharged and that the consumer has a right to a refund if the vehicle breaks down. Classy Cycles is also prohibited from requiring consumers to recharge vehicles before they are returned.

The defendants will pay $20,000 in refunds to consumers, including $12,395 in refunds to 56 consumers who filed complaints against Classy Cycles. The remaining funds are to be paid to consumers who file complaints showing that they are due refunds within 120 days of the date of the judgment. Consumers may file a complaint by Dec. 2, 2017.

To view the settlement, click here.

Anyone who suspects unfair or deceptive business practices can file a complaint with the Attorney General’s Office online at MyFloridaLegal.com or call (866) 9-NO-SCAM.

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