Budget to Pay Refunds to Settle Charges:...

Budget to Pay Refunds to Settle Charges: Budget Rent a Car Systems Inc. will pay $75,000 for consumer refunds to settle Federal Trade Commission charges that the company failed to inform customers that they could be charged thousands of dollars beyond actual repair costs if they had an accident. When customers damaged a Budget car without paying an extra daily charge for insurance, the FTC charged, the country’s third-largest rental-car agency imposed a fee designed to make up for the fact that Budget couldn’t later sell the vehicle back to the manufacturer at a better-than-market price. The FTC charged that Lisle, Ill.-based Budget didn’t disclose the potential for the extra charge in its contracts and led customers to believe they would only be responsible for damage to the vehicle if they didn’t purchase a “loss damage waiver” costing as much as $13 a day. Many people decline the daily waiver fee because their own automobile insurance will cover damage to a rental car. Most insurance policies, however, would not pay for the extra Budget fee. Budget did not admit or deny wrongdoing in the settlement, but has stopped collecting the extra fees.