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According to Auto Rental News, there were some 900 auto recalls issued in 2015. This equates to 2.5 per day. These recalls affected more than 100 million vehicles. There may be a smaller percentage of the recalls affecting rental fleets, but because of the sheer frequency and the volume of models which are affected, there is a demonstrated risk to fleet management and customer service issues that all rental companies face. 

The Raechel and Jacqueline Houck Safe Rental Car Act of 2015 passed in December 2015 as part of the larger transportation bill, which mandates by law the grounding of all recalled rental vehicles. The bill officially became law on June 1. 

Provisions of the Safe Rental Car Act. (Source: Auto Rental News)

The bill defines a rental vehicle as a motor vehicle that has a gross vehicle weight rating of 10,000 pounds or less; rented without a driver for an initial term of less than four months; and is part of a motor vehicle fleet of 35 or more motor vehicles that are used for rental purposes by a rental company.

Once the manufacturer provides a rental company notification about a covered rental vehicle in the company’s possession, a rental company needs to comply with the limitations on sale, lease or rental as soon as practicable, but not later than 24 hours after the earliest receipt of the notice.

If a rental company receives a recall notice covering more than 5,000 vehicles in its fleet, the rental company needs to comply with the limitations on sale, lease or rental as soon as practicable, but not later than 48 hours after the earliest receipt of the notice.

What was the problem that initiated the bill?

NBC News reported that this bill was named for two California sisters who were killed in a crash of a Chrysler PT Cruiser they had leased from Enterprise Rent-a-Car. Initially, the rental company attempted to blame 24-year-old Raechel, who was driving. However, a jury later disagreed. In a 2010 verdict, a jury issued a $15 million verdict against Enterprise, concluding the company had failed to make repairs after learning of a PT Cruiser recall ordered because of a defect that could cause a driver to lose steering control.

Who is affected by the new law?

The new law expands the National Highway Traffic Safety Administration’s (NHTSA) authority over safety recalls. Now the NHTSA is able to police rental car companies with fleets of 35 or more rentals or loaner vehicles, and fine them if they violate the law.

CarConsumers.org says that for the first time, the NHTSA has power, and nearly all vehicles rented or sold by rental car companies are required to be safe.

How will the new law impact car rental agencies and dealerships?

According to CarComplaints.com, much has yet to be seen how the new law will impact rental agencies. Rental companies with less than 35 vehicles are exempt from the law, but for others the law could mean having parked cars on the lots for months. The issues from CarComplaints.com’s perspective are:

First there is the issue of how long recalls can take, in many cases a period of months can pass before needed parts are available.

• Second, many recalls involve subjects such as a label that has incorrect tire pressure information printed on the label. 
• Under the law, it will not matter if the recall concerns engine fires or simple labels; all vehicles must be grounded until they are repaired. 
• An additional possible concern is the pressure it will put on dealerships to give repair priority to rental agencies over average consumers due to the money a rental agency can lose from parked rental cars. 

“Regardless of the law’s implications to car rental agencies, being involved in a vehicle accident can be devastating. We at Spivey Law Firm, Personal Injury Attorneys, P.A. have an experienced team of attorneys to handle these cases. Please contact us. There are no fees unless we recover money for you,” said Naples Vehicle Accident Attorney, Randall Spivey.

Naples Vehicle Accident Attorney, Randall L. Spivey is a Board Certified Trial Attorney – the highest recognition for competence bestowed by the Florida Bar and a distinction earned by just one (1%) percent of Florida attorneys. He has handled over 2,000 personal injury and wrongful death cases throughout Florida. For a free and confidential consultation to discuss your legal rights, contact the Spivey Law Firm, Personal Injury Attorneys, P.A., in Lee County at 239.337.7483 or toll free at 1.888.477.4839,or by email to Randall@SpiveyLaw.com. Visit SpiveyLaw.com for more information. You can contact Spivey Law Firm, Personal Injury Attorneys, P.A.in Charlotte County at 941.764.7748 and in Collier County 239.793.7748.