NY Settles With Zipcar Over Damage Fees It Charged

A Zipcar is parked at a lot yesterday in New York. Avis is buying Zipcar for $491.2 million, expanding its offerings from traditional car rentals to car sharing services. (AP Photo/Mark Lennihan)
A Zipcar is parked at a lot in New York. (AP Photo/Mark Lennihan)

New York’s attorney general has reached a settlement with Zipcar Inc. over vehicle damage fees charged to 5,000 members from 2011 through 2015.

New York law requires giving consumers an opportunity to dispute damage fees before they’re assessed. Investigators say Zipcar didn’t notify consumers before charging fees that ranged up to $1,000.

Zipcar lets members rent cars by the hour or day. Contracts say members are liable for damages to cars in their possession.

Zipcar agreed to refund damage charges assessed against customers who contested their responsibility, to pay $35,000 to the attorney general’s office and comply with New York law.

A Zipcar spokesman says the company has been working with the attorney general’s office on the application of the state’s unique statute and is pleased the matter is concluded.