TALLAHASSEE, Fla. (Legal Newsline) — Florida Attorney General Pam Bondi announced June 7 that her office has reached a settlement with Classy Cycles Inc. and owners Colleen Swab and Rich R. Roof after allegations of charging consumers for damages that did not occur.
The defendants rent scooters, golf carts and motorcycles on an hourly basis from five locations on Panama City Beach. According to allegations, Classy Cycles often failed to return consumer deposits and had no justifiable reason to do so. Additionally, the defendants purportedly charged consumer accounts for damages the consumers never caused.
As per the settlement agreement, Classy Cycles and its owner will refund $20,000 to consumers, including $12,395 in refunds to consumers who filed complaints against the company. The remaining amount will be given to consumers who file complaints over the next 120 days.
The agreement also calls for the company to end its practice of obligating consumers to pay for damages they did not incur. The company’s rental contracts must clearly and conspicuously disclose specifics about rental deposits and property damage coverage.