Consumer complaint received 2022-02-07
Company: JPMORGAN CHASE & CO.
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Add-on products and services

Complaint:
JP Morgan Chase Card Services vendor for car insurance denied my claims inexplicably, despite no documentation or evidence. Please see my appeal pasted below : Dear Sir/Madam, Please accept this email as my Appeal of Claim # XXXX ( claim attached hereto ). Card Benefit Services ( " XXXX '' ) has denied my claim stating only : " The class/type of rental vehicle is not covered under the Auto Rental Collision Damage Waiver Benefit. '' XXXX failed to provide any indicia for its conclusion and my repeated requests to both XXXX and Chase for a copy of the policy and a published list of excluded vehicles proved entirely fruitless. I was left to examine the only sources of relevant information available to Chase cardholders, to wit, " Chase XXXX 's Guide to Benefits '' and XXXX 's " FAQ '' ( the latter merely tracks the Guide to Benefits ) to discern the basis for denial of my claim. 

Chase XXXX 's Guide to Benefits for its Chase Inc. Business Preferred Card, ( the " Guide '' ) states that the auto rental collision damage waiver ( " XXXX '' ) benefit provides reimbursement for damage due to collision or theft up to the actual cash value of most rental vehicles. In fact, the Guide states that primary coverage is provided when renting primarily for business purposes ( as was the case here ) or renting outside your country of residence for personal reasons, or if you do not have automobile insurance. As I rented a 2021 XXXX Land Cruiser ( the " Vehicle '' ) in the United States primarily for business purposes, coverage should be provided so long as the Vehicle is not excluded and I have fulfilled the other conditions. 

The XXXX provides the following steps to ensure that XXXX is in effect at the time of rental : ( XXXX ) Initiate and complete the entire rental transaction using your card that is eligible for the benefit. 
( XXXX ) Decline the rental company 's collision damage waiver or similar provision if it is offered to you. 

The fact that I fulfilled both of the foregoing conditions is not in dispute. 

The Guide provides additional information under the heading " Is there anything else I should do when Im renting a vehicle? '' " Its always a good practice to review the rental agreement and become familiar with its terms and conditions. Also make sure you decline the rental company 's XXXX option as mentioned above. Check the vehicle for prior damage before leaving the rental lot. '' I reviewed my rental agreement and declined the rental company 's XXXX option . Moreover, there is no term or condition which I violated by renting the Vehicle, nor was there any damage to the Vehicle prior to my leaving the lot. Therefore, I fulfilled the additional requirements for coverage provided in the Guide. 

Under the heading " When and where am I covered? '' the GuidXXXX states : " The benefit is available in the United States and most foreign countries. Coverage is not available where it is prohibited by law or by individual merchants, or is in violation of the territory terms of the rental agreement. '' Thus, the Guide specifically states that the benefit is available in the United States and most foreign countries, which is consistent with Chase 's global coverage ( which now includes previously excluded countries ). Moreover, coverage is not prohibited by any law, or by an individual merchant, nor is coverage in vioation of any territory terms in my rental agreement. My rental agreement states only : This vehicle may not be driven into XXXX. Therefore, since the rental agreement does not exclude the Vehicle as to coverage in any territory besides XXXX, the territory exclusion is not applicable and therefore coverage per the Guide is available in the United States. 

As to what types of rental vehicles are not covered, the Guide provides the following information regarding exclusions : " Excluded worldwide are : expensive, exotic, and antique automobiles ; cargo vans ; vehicles that have an open cargo bed ; trucks ; motorcycles, mopeds, and motorbikes ; limousines ; and recreational vehicles. '' It is patently clear the Vehicle does not fall into any of the foregoing categories, and importantly does not fit within any of the provided examples of expensive or exotic brand automobiles. Accordingly, by the Guide 's own terms, the Vehicle is not an excluded vehicle. 

XXXX has not asserted that I have violated the auto rental agreement in any way. Indeed, XXXX 's standard letter of eligibility ( sample attached ) states that when using a Chase Bank XXXX card primarily for business purposes, the cardholder is eligible for worldwide coverage under the auto rental collision damage waiver benefit, where, as here, coverage is not prohibited by law or by individual merchants, or in violation of the territory terms of the rental agreement. I have already demonstrated that the foregoing condtions have been met. Additionally, as the five ( 5 ) conditions listed in the eligibility letter have also been unequivocally satisfied, coverage of my claim is not prohibited by Chase 's and XXXX 's published Guide/FAQ 's and therefore XXXX 's denial is impermissible as it lacks a legal basis. 

Chase 's refusal to provide its cardholders with a copy of its policy and a list of excluded vehices demonstrates bad faith. Without this information a cardholder is unable to make an informed decision regarding rental collision damage waivers. In my case, in reliance on the Guide 's misleading and incomplete terms, I declined the loss/damage waiver offered by the rental company -- which has deprived me of another source for coverage. I am left to conclude that XXXX 's denial of my claim is wrongful and in possible violation of state and federal auto insurance fraud statutes and consumer protection regulations. Moreover, the patently inadequate information Chase and XXXX provide to cardholders appears to contain deceptive advertising. 

In view of all the foregoing, I hereby request that XXXX reconsider the denial of my claim and approve same as eligible for coverage under the XXXX benefit. In the event XXXX maintains the denial of my claim, I hereby request a detailed explantion for the basis of XXXX 's conclusion that the Vehicle is excluded from coverage, as well as a copy of Chase 's auto rental XXXX benefit policy and a list of excluded vehicles. Failure to provide this relevant information to which I am entitled as a cardholder and a consumer, will leave me with no alternative but to seek the legal redress to which I am entitled under state and federal law. Please be guided accordingly. 

Regards, XXXX XXXX

Company response to consumer: Closed with explanation