Lawsuit filed against Executive Car Rental for allegedly breaching settlement with state
Executive Car Rental is accused of breaching its settlement agreement with the Michigan Department of Attorney General.
Michigan Attorney General Dana Nessel filed a lawsuit against the company seeking injunctive relief and damages.
"Despite ECR's agreement to change its practices, the company continues to use the same deceptive and illegal tactics that got it into trouble initially," Nessel said. "Today, we are seeking to put an end to these practices and ensure no consumer is taken advantage of by this company again."
The attorney general's office began looking into the company in November 2018 after complaints came in from Michigan and out-of-state consumers. Most of the complaints were related to damage deposits not being returned or being withheld completely.
A notice of intended action was issued in January, and in March, ECR entered into a settlement agreement for nearly $40,000 and reimbursed most of the affected consumers.
The company agreed it would no longer charge deposits on vehicle rentals and that it would begin a process of inspecting the car before the rental process was completed. State officials said the company has not held up its end of the bargain and has been charging and withholding deposits from consumers.
The company is also accused of not implementing a prerental inspection procedure. This has led to disputes about whether vehicle damages were caused by a customer or were preexisting.
"Businesses have an obligation to follow our consumer protection laws if they want to do business here," Nessel said. "When they don't, I'm making it abundantly clear that the Michigan Department of Attorney General will seek to hold them accountable."
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