A law took effect on Wednesday requiring rental car companies to repair recalls before renting out vehicles to customers.
The law is part of the $305 billion Highway and
Transportation Funding Act of 2015.
This comes as a big surprise to the average renter, who may just be renting once every few years for a vacation or work
trip.
Yet, accidents have racked up through the years, resulting in lobbying efforts from victim’s families to require companies to
keep their cars safe and up-to-date.
According to CNN, major
rental car companies such as Enterprise, Hertz Global Holding Inc (NYSE: HTZ) and Avis Budget Group Inc. (NASDAQ: CAR) have been complying with the law even before it went into effect, said
Sharon Faulkner, executive director of American Car Rental Association.
This is good news for travelers who would like to make it home again. Used cars are still being sold without recall requirements
(for now).
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.