28 May 2014

Recalled Cars Still Being Rented

Posted By Darrigo, Diaz & Jimenez

Updated on June 3, 2019. There is a loophole in our legal system that allows used vehicles under recall to be rented or sold without being repaired. Under federal law, used-car dealers and rental car companies are not required to tell customers that a vehicle has been recalled. This is particularly concerning given the hundreds of thousands of cars recalled each year.

For example, more than 2.6 million GM cars have been recalled for a faulty ignition switch. Safety advocates point out that if millions of new GM cars are unfit for use, then these same cars should not be sold at second-hand dealers.

Under the U.S. Transportation Department’s Grow America Act, a new provision would make it illegal for recalled vehicles to be sold or rented without being repaired. And a Senate bill proposed in the wake of the 2004 deaths of Jacqueline and Raechel Houck, two sisters killed in a recalled vehicle they had rented, would address rental cars. The legislation is expected to pass.

“It’s time we close the car-sized loophole that allows recalled vehicles to leave the lots of car rental companies and used car dealers without repairs,” U.S. Sen. Edward J. Markey (D-Mass.) told the Herald. “I will work with my colleagues in the Senate to pass legislation to protect consumers and prevent future tragedies from happening.” For either piece of legislation to succeed, however, advocacy groups such as Shahan’s will have to contend with auto dealers and manufacturers.

Gloria Berquist, a spokeswoman for the Alliance of Automobile Manufacturers, which represents 12 automakers, including GM, said it would support the Senate bill pertaining to recalled rental cars if manufacturers were protected from lawsuits by rental companies over lost business while recalled vehicles are idle.

Bailey Wood, a spokesman for the National Automobile Association, said the Transportation Department’s proposal is unnecessary because of a rule, slated to take effect in October, which will require all manufacturers to have a database where people can enter a vehicle identification number and find out whether the car has been recalled. “You’re supposed to find out if the car you’re buying has been recalled,” Shahan said. “Until you do, they’re perfectly happy to put your life at risk.” Original Source.

Categories: Personal Injury
Back to Blog

DARRIGO, DIAZ & JIMENEZ IS READY TO HELP

Call now, or complete the form below to request a free consultation.