Rental Agency Fined Speeding Drivers

A rental car company used a satellite-linked device to catch customers speeding and automatically charged fines to their credit cards, spurring a complaint from Connecticut’s Department of Consumer Protection.

The complaint accuses American Car Rental, which operates Acme Rent-A-Car in New Haven, of violating the Connecticut Unfair Trade Practices Act by failing to warn customers of the potential for fines and charging customers’ bank accounts or credit cards.

The company said its rental contracts clearly warn customers they face a $150 fine every time the satellite tracks them speeding for more than two minutes.

Although other car rental companies use GPS to track stolen cars or give directions, experts said they have not heard of any other companies tracking speed and levying fines. Six national car rental companies contacted said they do not track customers’ speed.

Connecticut Atty. Gen. Richard Blumenthal, whose office investigated Acme, called the practice “abusive and illegal.” The state said it found 26 customers who were forced to pay speeding penalties.

“This practice reflects the perils and misuse in technology when consumers are made unknowing victims of Big Brother tactics,” Blumenthal said.

One of the consumers, James Turner, is suing the company in small claims court in New Haven, seeking the return of $450 the company charged to his bank debit card based on claims it caught him speeding last fall.

Max Brunswick, a lawyer for Acme, said the company is amenable to offering refunds and plans to more clearly define the policy in customer contracts.

“Our goal has never been to make money off of this. Our goal has been to enforce speed limits on our cars and prevent the catastrophic claims that can put us out of business,” Brunswick said. Acme has only one outlet, in New Haven.