Consumer Agency Targets Connecticut Car Rental Firm Over Tracking, Fining Customers for Speeding

July 3, 2001 - HARTFORD, Conn. (AP) - A rental car company used satellites to catch customers speeding and automatically charged fines to their credit cards, spurring a complaint Monday from the state Department of Consumer Protection.

The complaint accuses American Car Rental Inc., 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 rental contracts clearly warn customers they face a $150 fine every time the satellite tracks them speeding for more than two minutes.

Max Brunswick, attorney for Acme, said the company is agreeable to offering refunds and plans to more clearly define the speeding 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," said Brunswick.

The state should receive the company's settlement proposal by Friday, he said.

Brunswick said the company still plans to use the GPS devices to track speeding, as well as track unreturned cars.

The department wants the company to halt the practice and reimburse customers who paid fines.

"We have about 26 Connecticut consumers that we feel were forced to pay penalties which we think are illegal," said James Fleming, department commissioner.

If an agreement is not reached, the department will schedule a court hearing Aug. 22.

State Attorney General Richard Blumenthal, whose office investigated the company jointly with the department, praised the consumer agency's complaint, calling Acme's practice "abusive and illegal."

"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, New Haven resident James Turner, is suing the company in small claims court in New Haven, seeking the return of $450 he was charged after the company claimed it caught him speeding last fall.

AP-ES-07-02-01 2343EDT