In a shocking revelation, a recent investigation by Houston’s Channel 2 TV reporter Amy Davis uncovered deceptive trade practices at Priceless Car Rental, a new auto rental company in Houston. The company, which initially attracted customers with seemingly low prices, engaged in deceptive tactics to force customers into purchasing over $500,000 in extra insurance coverage.
Several customers, including a California man named Reza Ganjavi, reported attempts by Priceless Car Rental to charge them additional fees. Ganjavi recounted an incident where he was falsely accused of damaging a vehicle and was charged $1000. Similar complaints have emerged from other states, indicating a pattern of deceptive practices by the company.
Undercover Investigation at Houston’s Intercontinental Airport
Reporter Amy Davis conducted an undercover investigation, revealing the experiences of unsuspecting customers at Houston’s Intercontinental Airport. Matt Ginsburg, a traveler from San Francisco, shared his ordeal of being misled by Priceless Car Rental’s low advertised rates.
Ginsburg, who pre-paid for the rental, discovered hidden fees upon arrival, including a demand for $40 per day for additional liability insurance. The rental company insisted that the total cost was $286 after toll tag expenses and other charges were added. The undercover investigation exposed the company’s practice of tacking on hidden and excessive reservation charges.
Attorney Highlights Deceptive Trade Practices Act Violation
Attorney Chi Nguyen, representing consumers, pointed out that Priceless Car Rental’s actions may violate the Texas Deceptive Trade Practices Act. Customers who posted negative reviews or filed complaints felt misled and trapped by the company’s deceptive pricing strategies.
Nguyen emphasized the importance of transparency, stating, “If 99 percent of the people cannot get this price, why are you putting that price? You need to put the real price.” He highlighted the deceptive “bait and switch” tactics employed by Priceless Car Rental.
Company Acknowledges Error and Promises Compliance
In response to the investigation, Priceless Car Rental’s Houston franchise owner admitted that the extra $500,000 in liability coverage was not necessary. The company acknowledged errors in its website language and employee communications with clients.
Attorney Mike Dodson, representing the Houston franchise owners, stated, “If it is determined that refunds are due on Supplementary Liability Insurance coverage, we will assist Mr. Dube and his company by guiding him through that process, which will be undertaken expeditiously.”
Consumer Rights and Legal Action
Consumers have the right to file suit, even in municipal court, under the Texas Deceptive Trade Practices Act. Violations of the act may result in the recovery of three times the original amount for overcharged consumers. Priceless Car Rental, with locations across the country, now faces scrutiny for its deceptive practices.
As the investigation unfolds, disgruntled customers are urged to explore their legal options and hold the company accountable for its deceptive trade practices. The story serves as a cautionary tale for consumers seeking car rental services, emphasizing the importance of thorough research and awareness of potential hidden charges.
