Lawmakers Speak Out Against Hidden Car Rental Fees

New Yorkers are warned that they may be charged extra fees when renting cars from Thrifty and Dollar depending on where they live.
Lawmakers Speak Out Against Hidden Car Rental Fees
Tara MacIsaac
11/24/2010
Updated:
11/24/2010
NEW YORK—Manhattan Borough President Scott Stringer, state Sen. Daniel Squadron, and Assemblyman Brian Kavanagh are warning New Yorkers that they may be charged extra fees when renting from Thrifty and Dollar car rental companies if they live in the Bronx, Brooklyn, or Queens.

“Dollar’s and Thrifty’s practice of charging people different rental rates based on where they live is unfair discrimination, plain and simple, and should be illegal,” Kavanagh stated in a press release.

Other car rental companies, such as Budget-Rent-a-Car and Hertz, gave up the practice of charging additional fees based on borough residency, say the politicians. Dollar and Thrifty, however, continue to charge an additional $55 per day for Brooklyn residents, $53 for renters from the Bronx, and $11 for the residents of Queens.

Assemblywoman Linda B. Rosenthal called the phenomenon a “class warfare,” but a Dollar employee claimed that the charges are necessary “due to the cost of insurance and the things that happen in those boroughs.”

An insurance industry insider explained that Manhattan has lower insurance rates because residents use their cars less. Claims also show increased theft and accidents in the Bronx, Brooklyn, and Queens compared to other boroughs.

Jay Harlowe of Brooklyn complained that the fee was not included in the online quote and that he “was slapped with this extra fee when it came time to pay.”

When one reserves a car on the Dollar’s website, the customer is warned in capitalized, blue text, “IMPORTANT: LOCAL RENTERS SPECIAL POLICIES APPLY IN THIS MARKET PLEASE REVIEW LOCAL POLICY INFORMATION.”

Where to look for this local policy information is initially not clear, however. The option to review local policies appears below the terms and conditions in the fourth and final step of reservation.

Stringer, Squadron, and Kavanagh urge New Yorkers to boycott Dollar and Thrifty to force them to comply with the Local Law 21 of 1992, which states, “No rental vehicle company shall refuse to rent a motor vehicle to any person otherwise qualified based on that person’s residence, nor impose fees or charges based on that person’s residence.”

A precedent was set when Hertz defended their policy and the court ruled in their favor, as a result of which this law has not been enforced. Though Hertz has since changed their policy, Dollar and Thrifty persist with additional charges.

Stringer hopes that where the law does not apply pressure, consumers will force these companies “to stop acting like turkeys and to halt this unconscionable practice once and for all.”