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Should Rental Companies Be Required To Fix Recalled Cars? (UPDATED)

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Enterprise Rent-A-Car

Enterprise Rent-A-Car

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UPDATED: See below

In 2004, Raechel and Jacqueline Houck rented a Chrysler PT Cruiser from Enterprise Rent-A-Car -- a vehicle that had been recalled for a power steering fluid leak. While driving, the leaking fluid caught fire, which caused the sisters to lose control of the car and collide with a big rig. Both women were killed. 

Today, there is a law pending in Congress that would force rental companies to ground recalled vehicles. According to a report in USA Today, it comes in the form of an amendment to a transportation bill that Congress will begin discussing after it reconvenes next week.

The amendment would give the National Highway Traffic Safety Administration control over the way in which rental companies like Enterprise manage recalls. That makes sense, since the NHTSA is the agency charged with establishing standards for motor vehicle safety and for overseeing recalls.

The amendment -- known as the "Raechel and Jacqueline Houck Safe Rental Car Act of 2011" is supported by a number of legislators, as well as the Houck's mother, Cally, and the advocacy group Consumers for Auto Reliability and Safety. However, Ms. Houck claims that even though Enterprise admitted fault in the accident that killed her daughters, the company is lobbying against the legislation, and she has started a petition to bring attention to that fact.*

What it does

If passed, the Raechel and Jacqueline Houck Safe Rental Car Act would do several things. Chief among them:

1) It would prevent companies from renting, leasing, or selling recalled vehicles from the date that companies receive notice of the recall.

2) It would require that companies immediately provide alternate vehicles to rental customers who are already in possession of recalled models.

3) It would require the NHTSA to gather data on "safety features that are normally included in the sales of such motor vehicles to consumers" but which rental companies occasionally decline. (For example: side-curtain airbags are commonly purchased by retail customers, but to save money, rental car companies may opt not to get them.) How this will affect the way rental cars are sold to consumers in the future remains to be seen.

The pros, the cons, and the outcome

It's hard to argue against this kind of legislation. Some might say that certain recalls -- like the mis-labeling of proper inflation pressure for spare tires -- are less urgent than others, and that lumping them all into the same category seems silly. But then, one blowout on a rental car, and those folks might change their tunes.

An extreme libertarian could argue that the bill enlarges an already-bloated government and allows a federal agency to meddle in the affairs of private business. But does that person trust her rental car company to care for the thousands of rides in its fleet with the same attention to detail that she gives the one car in her own garage?

Rental car companies like Hertz insist that they absolutely do not rent vehicles that are under recall. Enterprise, however, says that it has "a team of senior executives" who review recalls to see if there's an interim fix available. That seems sensible for less-urgent recalls -- but then again, what counts as a "less-urgent recall"? Isn't a recall urgent by definition? And can consumers always count on rental companies to be conservative in favor of customer safety? That old image of a mysterious car under Enterprise wraps carries some unfortunate resonance.


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Comments (5)
  1. Recalls are issued only when there is an safety issue concern regarding the car. The question should be "Should anyone rent or sell you a car with an known safety issue?"
     
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  2. Considering that they not only have their own standard of vehicle sizing that diverges from common practice, leaving it up to them to determine the severity of a recall would not be in the best interest of consumers.
     
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  3. Recalls are not always safety related, so they don't always mean the car needs to be immediately fixed. I received a recall on a Pickup truck for the cables that support the tailgate when it's down. That is in no way an issue that would affect the safety or the drivability of the truck. I have also heard of paint related recalls and others where this kind of law would be a hindrance for minor issues. Even when there is a chance of a problem, the likelihood is slim that it will actually happen. If there is a very dangerous issue, they should take the cars off the road, especially considering the repairs will be performed at no cost, but I do not think a catch-all law is a good idea. We are being drowned in laws and regulations.
     
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  4. Part two; Every time something bad happens people think we need a new law to protect people from this or that, after all it's only one more law. But they add up, and one law here, a regulation there, and then before you know it all our jobs are in China because we can't compete due to the cost of meeting the requirements of the Government and what it takes to try to protect every last person we do business with. It's nice to think we can do that, but it's not realistic. We have gotten WAY too carried away with that way of thinking. Every law, regulation, requirement, safety feature, etc. adds to the cost of doing business. Now it's just too expensive to do it here in the U.S. any more, and on top of that, they want to raise taxes.
     
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  5. Since recalled cars are fixed at the expense of the automaker generally, yes, they should be required to drive the cars to the closest dealership and have them fixed. Whats the problem with this?
     
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