Michigan Attorney General Dana Nessel last Thursday announced her office reached a settlement agreement with metro Detroit-based Executive Car Rental. The settlement totals $39,500 and will be used to reimburse 55 consumers and department investigation costs. Of that settlement, the Better Business Bureau Serving Eastern Michigan will receive $4,000 for its assistance to the Department of the Attorney General in identifying consumers and the issues examined.
The settlement agreement made public last Thursday resolves the department’s investigation into the company’s apparent violations of the state’s Consumer Protection Act, including several complaints related to damage deposits of $250 or more that were allegedly not returned timely.
Nessel’s office began taking a closer look into the company in November 2018 after receiving a steady volume of complaints from Michigan and out-of-state consumers. Her office interviewed several of the complainants and obtained supplemental documentation that led to the notice of intended action.
“Businesses have an obligation to follow our consumer protection laws if they want to do business here,” Nessel said. “I’m thankful our office was able to reach an agreement on behalf of Michigan consumers that provides relief to consumers and corrects the company’s poor business practices.”
Nessel cited a recent comment received from an out-of-state visitor who complained about Executive Car Rental on the AG’s Consumer Complaints website, which said in part, “Your advocation for justice for those wronged is greatly appreciated ... I now feel immensely better about having to travel to your state.”
“This is important work,” added Nessel, “not just for our residents but in this case, for those who visit our state as well.”
As part of the agreement, Executive Car Rental is required to refund security deposits paid by affected consumers within 30 days of the executed agreement. If they fail to refund deposits, consumers are entitled to two times the amount of the original deposit.
The agreement also puts in place several compliance measures to protect consumers going forward, including:
• Banning the collection of security deposits on vehicle rentals.
• Requiring the company to refund all security deposits collected from Jan. 1, 2018 through the date of the agreement.
• Implementing a procedure to ensure all individuals renting vehicles from its Michigan locations are given an opportunity to inspect the vehicle to note any pre-existing damages.
• Ensuring the company’s terms and conditions are consistent with all reservation systems.
Consumers with complaints on this or any other consumer issue may file a complaint at mi.gov/agcomplaints or by calling 877-765-8388.
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