Avis Budget Rental Group must pay New York State $275,000 in penalties for unlawfully denying car rentals to consumers without credit cards, officials said Tuesday.
In addition, the company must update its policies and employee training to ensure its team members comply with state law.
“Having a credit card is not a prerequisite to rent a car to get to work or go on a family trip to explore our great state,” Attorney General Letitia James said in a statement.
After receiving a complaint from a consumer who was denied a rental because of a lack of a credit card, the New York State Attorney General’s Office opened an investigation. That 2022 investigation found that 74 Avis Car Rental and Budget Rent a Car locations across New York told customers that a credit card was required to rent a vehicle.
“Avis Budget put up unfair roadblocks for consumers who do not have a credit card and prevented them from renting cars,” James said.
“This practice unfairly harms low-income consumers and communities of color who are less likely to own a credit card, and no one should be discriminated against because of their credit or banking status.=,” she added. “I encourage consumers to submit complaints and concerns to my office if they feel they have been treated unfairly or illegally.”
Avis Budget owns Avis Car Rental and Budget Rent a Car, with more than 100 locations across New York. Investigators visited Avis Budget locations in Buffalo and Amherst and were denied a car rental because they did not provide a credit card.
In addition, investigators called several Avis Budget locations across the state, and 74 Avis Budget locations refused to accept debit cards or provide other accommodations for those without credit cards, in violation of New York law. Several locations also had signs displayed at their stores saying that they did not accept debit cards, officials said.
The AG’s office said that most rental car companies allow individuals without a credit card to rent a vehicle by placing a cash deposit or a hold on a debit card. According to a report by the Federal Reserve Bank of New York, roughly 30 percent of Americans do not have a credit card and low-income communities are less likely to have a credit card.
New York’s car rental law is intended to provide equal access to a car rental to everyone, and officials say that denying consumers services because they do not have a credit card disproportionately harms vulnerable communities, officials said.
In addition to the penalty and updates in policy and employee training, the company must also provide the AG’s office with compliance training.
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