New Federal Law Prohibits Car Rental Companies from Renting Recalled Cars until they are Repaired

New Federal Law Prohibits Car Rental Companies from Renting Recalled Cars until they are Repaired

Last year a legislation approved by the Congress was endorsed as a law which comes into effect today, which makes it necessary for rental car companies which have fleets exceeding thirty five vehicles, to pull out all recalled vehicles until they are repaired.

Earlier, laws only stopped car companies from selling a vehicle which was under recall, till it was fixed. However, there were no legal boundaries to renting out one to the public. With the law coming into immediate effect from Wednesday, there is not much time for the rental fleet operators to pull out recalled unrepaired vehicles.

Though the bill got support from the car rental industry and inputs from the American Car Rental Association for a better step towards consumer protection, yet it did not make everyone in the industry happy. For the smaller independent companies, the idea of parking cars for long, till they are repaired does not seem t be a great idea.

In many cases of recall, the automakers do not have a timeline or a clear cut plan of the repairs and it may take months before the vehicles are allowed to ply on the roads.

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