Legal Question in Consumer Law in Illinois

Liability Limits for Late Fees on Rented Goods?

I rented moving blankets with a retail value of $70 from a popular national self-moving company for a one-way move between Pasadena, Calif. and Chicago, Ill. I returned them late and have been assessed a $1650 late fee by the company. While the rental contract does specify an expected return date and that there may be late fees, it does not spell out exactly what those fees will be. Am I legally responsible for whatever amount the company decides I owe? Are there any laws that limit my liability to the actual value of the goods that were rented?


Asked on 6/13/06, 8:06 pm

1 Answer from Attorneys
Jay Edelson KamberEdelson

Re: Liability Limits for Late Fees on Rented Goods?

Under the law of Illinois (and California), it is illegal to charge late fees that would constitute a penalty (as opposed to an amount that would approximate the company's losses). In other words, the company would have to prove that due to your failure to return the goods on time, it actually sufferred $1650 in losses. Given that the blankets are valued at $70, the company would be hard pressed to charge you more than $70. Blockbuster faced a class action for similar conduct awhile ago when they charged people hundreds of dollars in late fees for videos that could have been bought for $20.

Also, because you're dealing with a moving company, you might have other rights.

If you call/e-mail me tomorrow, I might be able to help you out (no charge for my time).

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Answered on 6/13/06, 8:17 pm


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