Schumer Joins Safety Groups in Pushing Car Rental Firms on Recalled Vehicles

When a vehicle recall has been ordered, dealers are prohibited from selling that model until the problem has been fixed.

But car rental agencies operate under a different set of rules, the Associated Press reports.

Toyota, for example, has recalled millions of cars and trucks in the past year. Yet rental car companies are allowed to rent the recalled models without fixing the problems, a practice that saves them cash while putting their customers at risk.

In August, two advocacy groups, the Center for Auto Safety and Consumers for Auto Reliability and Safety, petitioned the Federal Trade Commission to take action. They asked that Enterprise Holdings, parent of rental giants Enterprise, Alamo and National, be required to operate under the same restrictions as auto dealers.

“The concept is real simple. If the car is not on the road, it’s losing money,” said Clarence Ditlow, executive director of the Center for Auto Safety. “So they want to schedule a recall repair when it’s convenient for them.”

Now the safety advocates have a political heavyweight in their corner: Sen. Charles Schumer, D-N.Y.

“If a car is not safe enough to be bought and driven off the lot, then it is not safe enough to rent,” Schumer said earlier this week in a letter to the FTC. He added that if the agency “can’t or won’t act, Congress will.”

Enterprise contended that it does more than the government requires. “In most cases, we place a ‘hold’ on recalled vehicles so they are not rented until the recall work is completed,” said company spokeswoman Laura Bryant.

The petition was motivated by a $15 million jury verdict against Enterprise earlier this year. The case involved a recalled Chrysler PT Cruiser that Enterprise failed to repair and that was involved in a crash that killed two sisters.

Related Post:

Auto Safety Groups Call for Enterprise to Stop Renting Faulty Cars

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