Legal Question in Credit and Debt Law in Michigan

I had an accident with a car rented in Germany this July 2011 which was my fault, however since I own an American Express Card it was told to me that I can decline the collision damage waiver (CDW) of the rental company even overseas. After filing the claim of my collision with AMEX, they are denying to pay for the collision now since they claim that the maximum new value of $50,000 of the car is exceeded, but told me if I had signed up for their premium plan before renting they would if covered me up to $75,000 of the new car value. I am an 22 year international student in MI, and saved up for this trip and rented a car that was withing my age limit and never was advised by AMEX that there is a $50,000 max value. How should I know how much the car was worth new when I rented the car especially in Germany, nor did I know about this premium car rental plan. The amount the rental car company wants to charge me of 11,000 Euro would put me to default, what should I do? I will never be able to pay that money. I feel so cheated by AMEX and hate them for this and wish I would never had declined the rental cars insurance.

I would highly appreciate your help since I am so worried and want to finish my education and don't want this to ruin my life ?


Asked on 10/06/11, 2:39 pm

1 Answer from Attorneys
Thomas R. Morris Silverman & Morris, P.L.L.C.

Here are some options:

1. Review AmEx account terms to determine if there is a basis for disputing the $50k limit.

2. Attempt to settle with the German car rental agency. See if they actually pursue you. They would, after all, presumably have to obtain a judgment here in Michigan in order to collect from you since I assume that you have no assets in Germany.

3. Ultimately, the debt may be dischargeable in bankruptcy. That's a last resort, but it's helpful to know that this remedy is available and that the debt will not prevent you from finishing your education and will not ruin your life.

The situation you have presented is complex, so this list of options is not a complete analysis and does not constitute legal advice. I would need to discuss the situation further in order to advise you fully.

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Answered on 10/06/11, 2:47 pm


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