Advantage Rent A Car and its affiliate E-Z- Rent-A-Car agreed to pay $4.6 million to settle a lawsuit filed by the State of California.
The companies rent vehicles to the public a several locations in California. In some cases, customers returned the rental vehicles with damages.
Allegations against Advantage Rent A Car
The state through Attorney General Xavier Becerra, Alameda District Attorney O’Malley and San Mateo County District Attorney Stephen M. Wagstaffe accused the rental companies of violating is consumer protection laws.
In the complaint, the state alleged that Advantage Rent A Car billed is customers for damages based on third-party estimates, which were oftentimes higher than the actual price it paid for the repairs.
Under the California law, rental car companies must pass along the discounts to consumers. However, Advantage Rent A Car failed to comply with the law.
Additionally, the state alleged that E-Z Rent-A-Car started the unlawful business practice. It was adopted by Advantage Rent A Car after their merger in June 2015.
Details of the settlement
On Monday, Advantage Rent A Car and its affiliate reached a settlement agreement with the state.