Yes — there is a lawsuit over Home Depot’s “damage protection” charges, and people who were wrongly charged may file claims or seek refunds.
What the lawsuit says
The suit, Simmons v. Home Depot USA, Inc., says that Home Depot adds a “damage protection” fee to tool rentals even when customers decline it. The complaint claims the system is set to default-add the fee, rather than requiring customers to opt in.
It argues that this practice breaches the contract terms, because “damage protection” is supposed to be optional and must be selected by the customer.
What Home Depot’s rental contract says
- Under older contracts (from December 2015 to March 2019), the contract states that damage protection must be selected to be charged.
- The contract sets the damage protection rate at 10% of the rental price in earlier versions, and in the newer contract (since late 2022), it is 15%.
- The contract also says that late fees are charged weekly, but the lawsuit claims Home Depot charges more frequently (e.g., in daily increments) which breaks that term.
- Also, the contract language may not clearly notify customers that damage protection could be applied to both the rental cost and the late fees.
What the complaint demands
- Refunds of damage protection fees wrongly charged.
- Declaring that Home Depot’s practices are unfair or breach contract.
- Injunctive relief (forcing Home Depot to change how it adds the fee).
- Compensation, legal costs, and fees.
Other related suit: overcharging & late fees
Another case (E&G Enterprise v. Home Depot) alleges that Home Depot overcharges for both late fees and damage protection. It claims:
- For contracts between December 2015 and March 2019, Home Depot should charge late fees weekly, but instead the company charges partial “weekly recurring” fees daily (in cycles).
- The suit says damage protection fees are also added improperly to late fees (i.e. 10% of the late fee) even though the contract does not clearly allow that.
- Even with the newer contract (after December 2022, when damage protection was raised to 15%), Home Depot continues these practices in the same way.
A past case that failed
A previous proposed class action, Mathews v. Home Depot (filed in 2022), claimed that Home Depot’s damage protection policy did not cover actual damage but only “normal wear and tear.” That case was dismissed in February 2025 because plaintiffs didn’t follow contract rules about giving written notice of disputes.
Who may be eligible
You may qualify for a claim if:
- You rented a tool from Home Depot under one of the contracts the lawsuit targets.
- You were charged a damage protection fee even when you declined it or were not clearly asked.
- You have documents such as the rental agreement, receipt, or invoice.
- Your rental fits within the time period and geographic scope defined by the class.
What refunds and relief may include
- Returning the wrongly charged damage protection fee.
- Reducing or eliminating extra charges beyond what the contract allows.
- Compensation for damage costs when protection was denied unfairly.
- Changes in Home Depot’s fee practices.
How to file a claim
- Keep all invoices, contracts, and receipts from your rental.
- Check whether damage protection was supposed to be optional in your contract.
- See if you have evidence you declined the protection.
- Watch for notices once the court approves class status.
- Fill out and submit claim forms with proof of wrongful charges.
Risks and limitations
- Claim deadlines matter — missing them may block your right to recover.
- The class definition is strict — not every rental or location may qualify.
- You must have strong evidence.
- The lawsuit is still unresolved, and outcomes are uncertain.
