Avis in $275K settlement for denying car rentals to New Yorkers without credit cards

New York Attorney General Letitia James announced that her office secured $275,000 from the car rental company Avis Budget Group Inc. (NASDAQ:CAR) for illegally denying car rentals to consumers who did not provide a credit card.

New York state law prohibits rental vehicle companies from denying services to customers who do not have a credit card. An investigation by James”™ office found 74 Avis Car Rental and Budget Rent a Car locations across the state that incorrectly told customers that a credit card was required to rent a vehicle. Some of the locations would not accept debit cards and several Avis offices posted signs saying they did not accept debit cards, which is also in violation of 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,” said James. “Avis Budget put up unfair roadblocks for consumers who do not have a credit card and prevented them from renting cars. 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. I encourage consumers to submit complaints and concerns to my office if they feel they have been treated unfairly or illegally.”

Photo: Autorentals.com Corp. / Flickr Creative Commons