February 1, 2006, 12:00:00AM. By Jane Mundy

Email

Home Depot calls it a "damage waiver fee": it automatically adds a 10 percent charge to its rental equipment without telling customers that this charge is optional.

As reported by law.com, a class action lawsuit has been filed in state court in Florida on behalf of thousands of customers who rented equipment over the past five years from the home improvement store.

Ironically, on Home Depot's website, the company states that " We'll not only match, but beat, any competitor's comparable rate by 10%."

According to consumers, Home Depot has other bad business practices. Joan Turin used to shop at Home Depot. But like countless disgruntled customers, she won't be going back. "I used Home Depot for rental equipment, and an insurance fee was charged automatically. However, I was unaware of the insurance until the piece of equipment was accidentally damaged, but only cosmetically," she says. " When I returned the item, I was charged an additional sum of money for the damage, stating that their insurance does not cover damage, accidental or otherwise."

"Additionally, I have had other rentals from Home Depot, equipment that failed to operate, lost time and money in exchanges. So, if damage insurance doesn't cover damage, what does it cover?" Indeed. Maybe it covers the 10 percent Home Depot pays out to its competitors.

READ MORE [ Financial LEGAL NEWS ]

LawyersandSettlements.com is an online news and information site for the general public and legal community. As a legal news resource, we have emerged as an independent & trusted voice. We provide detailed and quality information on various lawsuits filed including Financial Cases.