The Crittenden Automotive Library

Topic: Budget Rent a Car

Announced Actions for June 21, 1996

Agency: Federal Trade Commission
Date: 21 June 1996
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The Federal Trade Commission today announced the following actions. The FTC staff contact is Dan Ducore, 202-326-2526.

Consent agreements given final approval: Following a public comment period, the Commission has made final consent agreements with the following entities. The Commission action makes the orders binding on the respondents.

Budget Rent A Car Systems, Inc., of Lisle, Illinois, settling charges that it engaged in deceptive practices when failing to disclose potential charges of as much as several thousand dollars more than the cost of repairs that it imposed on customers who had not purchased a “loss damage waiver” when those customers returned their cars with significant damage. The FTC alleged that, in these situations, Budget sought to collect “loss of turnback” fees -- the amount Budget lost because damaged vehicles could not be resold to the manufacturer at a price higher than retail. The consent order requires Budget to pay $75,000 in consumer redress. In addition, if Budget intends to charge consumers for the “loss of turnback” fees again, the order requires the firm to clearly disclose in rental contracts and in travel agents’ and other computerized reservation systems consumers’ liability for damage or loss in excess of the actual cost of repairs to damaged vehicles, and to post this information at each of its rental locations where it collects such fees. (See March 21, 1996 news release for more details about the consent agreement; Docket No. C-3674; Commission vote on June 17 to finalize the agreement was 5-0.) Staff contact is Randy Brook, Seattle Regional Office, 206-220-6350.

Copies of the documents referenced above are available from the FTC’s Public Reference Branch, Room 130, at the same address; 202-326-2222; TTY for the hearing impaired 202- 326-2502. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC’s World Wide Web site at: http://www.ftc.gov

Media Contact:: Office of Public Affairs,
202-326-2180