Why renting a car is a huge scam
An insurance company says it will stop reimbursing drivers who rent cars out from the car rental company that provides them.
The California Insurance & Financial Services Commission announced Monday that it will ban the practice.
The commission’s decision comes just days after an investigation by ProPublica and the California Attorney General’s office revealed that thousands of drivers had been tricked into signing up for car rentals by rental companies that promised to provide them with a car when they paid for a car.
In some cases, the rental companies charged a fee for the car, sometimes as high as $25,000.
In most cases, drivers were tricked into paying the car for months or even years.
The state of California was the first to outlaw car rentals in 2015.
The new rule prohibits car rental companies from charging customers fees for car rental or to provide a vehicle to the person who pays for the vehicle.
Insurance companies that offer car rentals are required to disclose the nature of the payments made by car rental agencies and the fees they are charging.
This could potentially lead to lawsuits by homeowners who believe they have been tricked, and the FTC is investigating.
The agency said the commission’s action could lead to more consumer complaints and help consumers avoid the kind of scams that made headlines earlier this year.
The companies that do the car rentals say they are licensed by the state and insured by the government, but the state doesn’t require them to disclose these details.
The rules change come after ProPublicae and the Attorney General announced that they have filed a class action lawsuit against the state of Michigan and five car rental car rental service providers.
The FTC said the companies are not required to provide the names of the drivers or verify their identity and that they do not offer a “car rental insurance plan.”
The state is also investigating claims of car rental scams that occurred during the 2015 election season.