Two lawmakers want Hertz, Avis to answer questions on rising U.S. rental prices

WASHINGTON, March 18 (Reuters) – Two U.S. Home Democratic lawmakers on Friday questioned Hertz Worldwide Holdings, (HTZ.O) and Avis Spending budget Team to respond to inquiries about rising rental motor vehicle rates and better business earnings.

Agent Raja Krishnamoorthi, chairman of the Subcommittee on Economic and Buyer Policy, and Agent Katie Porter reported equally rental car or truck corporations appear to have utilised their market place position to elevate costs as bills fell.

They said in a assertion they want documents and facts by April 1 “from both of those corporations conveying the boosts in rental auto prices inspite of falling costs, as properly as a listing of any recognized investigations into these cost boosts.”

The corporations did not instantly react to requests for comment.

The lawmakers’ letters mentioned the economic effects propose the companies “could have prioritized maximum profits and

shareholder payouts at consumers’ cost” and “might have

engaged in predatory business techniques in the course of the pandemic, taking advantage of consumers who count on reasonably priced rental motor vehicle charges.”

Very last thirty day period, Hertz posted a report adjusted income in the fourth quarter as desire for rental automobiles remained solid, but post-individual bankruptcy restructuring expenditures yielded a massive net reduction.

Avis Budget mentioned in February it had report revenues and web earnings in the quarter ending Dec. 31.

The greater profits is the outcome of an sector-huge drastic improve in prices as shopper desire outstrips motor vehicle source with buyers returning to the rental counter for leisure and small business vacation, analysts say.

Reporting by David Shepardson Enhancing by Cynthia Osterman

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