ConsumerWatch: Calif. Bill Would Ban Renting Recalled Cars

SACRAMENTO (CBS 5)-- The deaths of two Santa Cruz sisters may lead to the closing of a legal loophole that allows rental car companies to rent recalled vehicles.

On Wednesday, Assemblyman Bill Monning (D-Carmel) introduced Assembly Bill 753, which would require defective cars be repaired before they are rented to unsuspecting consumers. Carolyn Houck joined Monning as he made the announcement in Sacramento.

Houck is the mother of Santa Cruz residents, Raechel Houck, 24, and her sister, Jacqueline, 20. Both died in a fiery crash in 2004 when their Enterprise rental car burst into flames and crashed into a big rig. The car had been recalled just a month before for a defective power steering hose, but it had not been repaired.

"Had this bill been in place in 2004 I wouldn't be here, but my daughters would be," Houck said.

Current laws prevent dealers from selling cars with defects but there is no rule that they says they can not continue to rent recalled cars. Monning's bill would make California the first to prevent rental car companies from renting vehicles until all safety recall work has been done.

The bill is similar to federal legislation introduced this week by Senator Charles Schumer (D-New York.)

The National Highway Traffic Safety Administration released repair rates involving 10 recalls by General Motors and Chrysler between 2006 and 2010. The agency said 65 percent of Enterprise rental cars were repaired within 90 days, compared to 53 percent of Avis and Budget rental cars. Only 34 percent of Hertz rental cars were repaired in that time frame.

Enterprise, the country's largest rental car firm, said those numbers don't take into account improved technology that result in quicker repairs. In fact, Enterprise says now 90 percent of repairs are completed in 90 days.

Until there's a law, Consumers for Auto Reliability (CARS) suggests consumers research the car they are renting or simply ask the rental car company if their rental car has been recalled.

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