Monday, May 30, 2011

APNewsBreak: Schumer targets rental car recalls

ALBANY, N.Y. (AP) — U.S. Sen. Charles Schumer of New York is introducing a bill that would stop car rental agencies from renting automobiles that are under recall for problems that aren't yet fixed.

Schumer says the federal law is needed because of serious crashes in recent years involving rental cars under recalls. He said car rental agencies must be held to the same standard as automobile dealerships that don't lease cars for longer terms until a problem identified in a recall is fixed.

The American Car Rental Association has proposed a two-tiered system in which serious problems would keep a car from being rented. Less serious problems that don't threaten safety would be fixed as soon as possible, but the car could be rented until then.

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