Auto Insurance Claims: administrative fee for auto rental repair in NJ, chevy hhr, visa credit card

Question
I rented a Chevy HHR from a Thrifty in NJ for two days in December. After I declined the LDW/CDW, gravel dinged the windshield while driving on an interstate. I reported it at check-in and was charged $182 for repair costs and $100 for an administrative fee. No loss of use charges were made by Thrifty.

My Visa credit card covers the cost of repair and $25 of the administrative fee. They contend that $100 is an unreasonable amount to charge for the time needed to send a vehicle to a glass shop. (I have to agree with them.) What is a reasonable administrative fee for the repair of a rental vehicle? I presume there is a range depending on the damage. Visa says that their payments for admin fees range from $25-150. Are rental agencies required to provide this range if asked about it. Can I get it in writing?

My agreement does mention that damage will result in an additional "reasonable administrative fee," but it does not say how much. For future reference, can I negotiate based on Visa's $25-150 range? For larger fees, may they be limited by state law?

Thanks,
Michael Collins

Answer
Mr. Collins,

   I never paid an administrative fee when I was an adjuster.  It is a BS charge.  If the agreement says you will be charged a reasonable fee, then that is exactly the criteria that has to be met.  I would inquire with the rental company as to what the administrative fee incorporates, exactly.  That is the only way you can determine if it is reasonable.  Visa's policy is not an indication of what is reasonable, it is just a cap on what they will pay.  As an adjuster, I would simply advise that I was not paying an administrative fee because any administration is a cost of business and to pass that on to consumers is not reasonable.  As a consumer with a signed contract, you may have to go a little further and actually investigate and demand for the fee to be "proven up" as reasonable.  

 A couple of examples to help you reason through this. . .

1.  A $50.00 charge to obtain an estimate on body damage would be reasonable, but a $50.00 charge on a windshield chip would not be reasonable.  

2.  A $25.00 charge for sending out notice letters is unreasonable.  Sending letters is a cost of business.

  As for being limited by State law, I doubt it, but it is possible and would simply require some research into the statutory regulation or common law case precedence.  Let me know if I can be of further assistance.  


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JP