Damage, Deposit, and Dispute Policy

Incorporation: This Damage, Deposit, and Dispute Policy is expressly incorporated into the HeyFestus Marketplace Terms of Service.

To protect Owners against damage, loss, late returns, or cleaning fees, HeyFestus may require Renters to provide a security deposit or authorize a hold on their payment method prior to the commencement of a rental.

Not a Liability Cap: The security deposit is not a cap on the Renter's liability. If the Renter's liability for damage, loss, or fees exceeds the deposit amount, the Renter remains fully responsible for the outstanding balance.

1.1 Capture Logic and Split Liability

Partial Capture: If an Owner submits a valid claim that is less than the total authorized deposit amount, HeyFestus will capture only the approved claim amount, plus any applicable administrative fees, and release the remainder of the hold.

Multi-Claim Sequencing: If multiple claims are submitted against a single deposit, such as late return fee plus physical damage, HeyFestus will process claims in the order received or prioritize physical damage claims, at its sole discretion, up to the maximum authorized amount.

Split Liability: If HeyFestus determines through its dispute resolution process that liability for an incident is shared between the Owner and Renter, HeyFestus may capture a proportional percentage of the deposit corresponding to the Renter's determined share of liability.

1.2 Fallback Charging Rights and Chargebacks

Fallback Rights: If an authorization hold fails, expires, or is insufficient to cover the Renter's liability for damage, loss, or fees, the Renter remains fully liable for the outstanding balance. HeyFestus reserves the right to charge any other payment method on file for the Renter, engage third-party collection agencies, and pursue all available legal remedies to recover the owed amount.

Fraud and Chargeback Handling: If a Renter initiates a chargeback or payment dispute with their financial institution for a valid charge authorized under this Policy, HeyFestus considers this a material breach of the Terms. HeyFestus reserves the right to immediately suspend the Renter's account, provide the payment processor with evidence supporting the charge, and assess a chargeback administration fee, if any, as determined by HeyFestus, in addition to the original disputed amount. Delinquent accounts may be referred to collections where permitted by law.

Owner Reporting Window: Owners must report any damage, missing items, or excessive cleaning requirements to HeyFestus and the Renter within 48 hours of the end of the rental period, or before the Item is rented to another user, whichever occurs first.

Owner Failure Consequence: If the Owner fails to complete the pre-rental condition records, HeyFestus may deny or reduce the claim.

Renter Reporting Window: Renters must immediately report any malfunction, damage occurring during use, or accidents to the Owner and HeyFestus.

Evidence Hierarchy: HeyFestus prioritizes evidence in the following order: (1) condition records, (2) timestamped photos/videos, (3) platform messages, (4) repair estimates, (5) receipts, (6) police reports, and (7) third-party documentation.

Repair/Replacement Documentation: For damage claims exceeding the amount published in the active booking or claim review flow, the Owner must provide a formal repair estimate from a licensed professional or a replacement quote.

Ordinary Wear and Tear: HeyFestus will not process claims for ordinary wear and tear, which includes minor scratches, scuffs, or normal degradation of consumables expected during standard use. However, consumables may be charged if not returned as agreed or if misuse caused abnormal wear.

Pre-Existing Conditions: Any damage or defect documented in the pre-rental condition record will not be chargeable to the Renter.

HeyFestus provides dispute resolution tools to assist users, but HeyFestus is not an adjudicator or a party to the rental contract.

Escalation: If users cannot resolve a dispute directly, either party may escalate the issue to HeyFestus support within 7 days of the rental's end.

Renter Response Opportunity: HeyFestus may request a response from the Renter before capture but may act without waiting where necessary to preserve funds, prevent fraud, or comply with payment processor rules.

Claim Review Timeline: HeyFestus aims to review and issue a determination on escalated claims within 14 business days of receiving all required evidence.

Deposit Release Timing: If no claim is submitted within the reporting window, the authorization hold will be released within the payment processor's standard release timing. If a claim is submitted, the deposit will be held pending resolution.

Owner Payout Holds: HeyFestus reserves the right to hold an Owner's pending payouts if the Owner is under investigation for fraud, misrepresentation, or unsafe listings.

In the event an Item is stolen or completely lost during a rental, the Renter is fully liable for the replacement cost. The Owner must file a police report within 24 hours of discovering the theft and provide a copy to HeyFestus. HeyFestus does not guarantee that the security deposit will cover the full replacement cost of a stolen Item.