CALIFORNIA Car rental company settles over customer surcharges

SAN FRANCISCO (AP) -- A Payless car rental franchise that allegedly failed to let customers know it tracked them when they crossed state lines and then imposed surcharges settled Tuesday a consumer protection lawsuit filed by California authorities.
The San Francisco Bay area company Acceleron Corp. agreed to reimburse hundreds of customers who were hit with the fees -- some as much as $3,000 -- beginning in January 2003, California Attorney General Bill Lockyer said.
The use of electronic monitoring devices such as global positioning satellites in rental cars has become a contentious issue. In 2002, Connecticut stopped Acme Rent-a-Car from tracking its customers and fining them $150 for speeding.
A law in New York prevents rental-car companies from using such systems to fine renters for speeding or driving outside the state. A similar law in California, which takes effect in January, allows companies to use such devices only to find lost or stolen vehicles and help drivers navigate.
Company's argument
Mark Mittelman, an attorney for the company, said Payless was within its legal rights when it installed the tracking devices last year. The company also maintains that its rental agreement did alert renters of the tracking device and its geographic restrictions.
The suit alleged that Acceleron failed to properly notify renters that their cars were equipped with GPS. The suit also alleged that the company did a poor job of letting customers know about its geographic restrictions.
That means that even customers who unknowingly violated those rules by traveling outside the state or to certain parts of Nevada returned to a bill that included a surcharge of $1 a mile for the entire rental period.