Schumer calls for ban on renting cars under recall

Reuters News
Posted: May 30, 2011 4:13 PM
Schumer calls for ban on renting cars under recall

NEW YORK (Reuters) - Senator Charles Schumer on Monday said a proposal by car rental agencies that would allow them to decide whether a safety recall warranted taking a vehicle out of service would endanger renters' safety and he called for legislation barring rental of any recalled vehicle.

The American Car Rental Association (ACRA), which represents nearly 100 agencies, in April proposed a two-tiered system to allow agencies to decide the seriousness of auto recall issues, and whether or not to take a vehicle out of their fleets.

"Under the proposal ... we sadly could see more tragedies," Schumer said in a statement, citing a case of two California sisters who died while driving a rented vehicle under recall.

Schumer said legislation he introduced in March would require car rental companies to operate under the same restrictions as automobile dealerships, which are banned from selling any recalled vehicle until the relevant safety issue is addressed. He called that a "common sense proposition."

Schumer said that the ACRA proposal would "create a vague double standard that defines some recalled cars as safe and others as dangerous," allowing "these companies to shirk their responsibility to consumers' safety."

Schumer also said ACRA's proposal would allow each rental car company to set its own policy, which he said would inevitably lead to unsafe cars being rented out.

A National Highway Traffic Safety Administration audit of ten recalls on Chrysler and GM vehicles found late last year that rental companies fix only half of recalled vehicles within a year, according to the car manufacturers themselves.

Rental companies dispute the findings, saying the data is incomplete and does not include rental cars sold to third parties before the official recall date.

(Reporting by Chris Michaud. Editing by Peter Bohan)