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Enterprise charges customer more than $3,300 for damage incurred after truck returned – CBC.ca

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Samuel Wardlaw expected to pay $200 for his truck rental. Instead, Enterprise Rent-A-Car added more than $3,300 to his bill — for damage that occurred after he dropped it off.

He’d only used the truck for five hours, to move some belongings to his new apartment.

But a week later, an unexpected email from the rental giant said he was responsible for damage that occurred on the Enterprise lot after hours.

  • Have a question or something to say? CBC News is live in the comments now.

The email didn’t explain what had happened or why he was responsible — but it struck fear in Wardlaw, 29, a delivery driver for a lumber company.

“I was anxious about what the price was going to be,” he said. “So to see over $3,300 in damage? I was totally shocked.”

Enterprise said later that, after Wardlaw parked the truck and put the keys in a secure drop box, as instructed by an employee, someone stole its catalytic converter, a part of the exhaust system that contains valuable metals.

Enterprise pointed to a clause on page 7 of its rental contract that says drivers who drop off a vehicle after hours are responsible for any damage or theft until it’s checked in by an employee.

“It’s their truck, their lot, their catalytic converter. Everything about it is within Enterprise’s control,” said Wardlaw. “For them to say it’s my liability is pretty ridiculous.”

After Go Public got involved, Enterprise said in an email it had “decided not to pursue the claim.” 

The company did not explain why and said no one was available for an interview.

Go Public has checked the terms and conditions for the three major companies that account for an estimated 95 per cent of all car rentals in Canada: Enterprise (which owns National and Alamo), Avis (which owns Budget) and Hertz (which owns Dollar and Thrifty).

All the contracts contain similar clauses, claiming drivers are responsible for any damage or theft from the time they drop off a vehicle until it is checked back in.

An employee at this Enterprise location in north Toronto told Wardlaw he could drop off a truck after hours. Wardlaw says there was no mention that he’d be responsible for the truck until it got checked back in almost two days later. (Samantha Nar/CBC)

A consumer advocate and lawyer says Enterprise and other car rental giants give the impression there’s no downside to dropping off a vehicle after hours.

“We’ve all been there — the car company says, ‘No problem, stick the keys through the slot in the door,'” said Jennifer Marston, who works with the free legal clinic Pro Bono Ontario.

“But how many times do they say to you, ‘If anything happens when the car is parked on the lot, you’re responsible’? That’s never happened to me.”

‘Just put the keys through the drop off slot’

Wardlaw says when he arrived to pick up the truck, there was little discussion about the terms and conditions in the 30-page (English and French) contract.

“They told me that since they were going to be closed at 12 o’clock that day and I would be returning at around 1 p.m., to just put the keys through the drop off slot when I returned the vehicle,” he said.

Marston says big car rental outfits can’t hide behind lengthy contracts they know most people won’t read and may not understand when they contain ambiguous or unusual terms.

The rental contracts for Canada’s three biggest vehicle rental companies all contain similar clauses; claiming drivers are responsible for any damage or theft from the time they drop off a vehicle until it is checked back in. (Luke Sharrett/Bloomberg)

“They wrote it. They had the opportunity to put more effort into making it clear and they didn’t,” she said. 

She says legal precedent exists due to an Ontario case which found Tilden Rent-A-Car was required to bring unexpected terms to the attention of the consumer if it wants them to be enforceable. 

“When there’s an onerous term in the contract, a heavy term that puts a big burden on someone, if it’s buried in the fine print, then the company in a consumer transaction like this has the responsibility to bring that to the consumer’s attention,” said Marston.

The companies also have to meet a standard of proof when holding customers responsible for damage, said Marston.

When Enterprise told Wardlaw a thief had stolen that catalytic converter, it sent photographs of the damage, but they weren’t time-stamped. 

“We don’t know when those photos were taken,” said Marston.

Lawyer Jennifer Marston of Pro Bono Ontario says car rental companies are required to point out unexpected clauses in the fine print to their customers. (Samantha Nar/CBC)

“Maybe they were taken a week later. The burden is on the company to prove that.”

She says people caught in a dispute need to know one thing — the rental company isn’t the judge.

“They will send you a letter saying you’ve caused this damage, you owe this amount of money. But they’re actually not the ones who get to decide that,” said Marston.

“That’s just their position as one of the parties to a legal claim. And you have the opportunity to respond,” she said, with the understanding that the matter might end with a collection agency or small claims court. 

Go Public has learned that the same Enterprise location in north Toronto had half a dozen catalytic converters worth $24,000 stolen from its trucks shortly after Wardlaw’s incident. 

  • Read stats about the growing problem of catalytic converter thefts

The company declined to say what it is doing to prevent further thefts and damage. 

Marston says the companies should ensure their vehicles are being stored under safe conditions.

“The rental company could secure the perimeter. They could install security cameras. They can install anti-theft devices on vehicles,” she said.

“These options aren’t available to the consumers, so why should the consumer bear the loss?”

‘This is absolute BS’

Stuti Narula of Toronto says an Enterprise employee also told her to drop off the keys when she returned a car after hours, to a location in the city’s north end last December.

The next day, an Enterprise employee called to say she was responsible for a scratch on its passenger door — and owed $1,000.

Narula says the car was in perfect condition when she returned it, but — as with Wardlaw — an employee said she was liable for any damages incurred before it was checked back in and that the matter would be sent to a collection agency if she didn’t pay up.

“This is absolute BS,” said Narula. “If I have to be held liable for any damages to the car, I might as well keep it in my careful custody until the office opens the next day.”

She says the drop-off location had closed-circuit cameras, but she was told she couldn’t see footage.

WATCH | Enterprise charges customer more than $3K for damages incurred after truck returned:

Man charged $3,300 for damage after rental truck returned | Go Public

13 hours ago

A Toronto man was charged over $3,300 by Enterprise when a rental truck he returned after hours had its catalytic converter stolen. CBC’s Go Public investigated the clause in most rental contracts that makes the renter responsible when a vehicle is returned after hours. 2:10

Narula also says she was told the damage was discovered after an employee drove the car to a car wash — and she questioned whether that’s when the damage occurred.

“I’m entitled to know what investigation Enterprise carried out at its end before slamming the damage cost on me,” Narula wrote in an email to the car rental giant.

After fighting Enterprise for several months, Narula reluctantly asked her car insurance company to submit a payment, but she’s sworn off ever renting from Enterprise again.

Enterprise wrote in an email to Go Public that allowing customers to return vehicles after hours is a “convenience” and that “it is important to understand that the rental transaction is not complete until the vehicle has been inspected.”

Wardlaw says he’s relieved he’s no longer expected to pay his damage bill, but says Enterprise has lost him as a customer, too.

“Basically, from the moment I called them, they were arguing with me. I didn’t feel that there was any interest in resolution — other than to have me pay the full amount.”


Protect yourself ‘after hours’

  • Ideally, return your vehicle during operating hours and have an agent check it over and sign off on rental.
  • If you must drop off the vehicle after hours, note whether there are security cameras on the lot and try to park within view.
  • Set your smartphone to add a date and time stamp to photos and take pictures of the sides, front, back and roof of vehicle and — if possible — the underside, wheel wells, interior and trunk.
  • Take a photo of the mileage on the odometer.
  • Hold onto photos for at least six months.

Submit your story ideas

Go Public is an investigative news segment on CBC-TV, radio and the web.

We tell your stories, shed light on wrongdoing and hold the powers that be accountable.

If you have a story in the public interest, or if you’re an insider with information, contact GoPublic@cbc.ca with your name, contact information and a brief summary. All emails are confidential until you decide to Go Public.

Follow @CBCGoPublic on Twitter.

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

The Canadian Press. All rights reserved.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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