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

By David Shepardson

WASHINGTON (Reuters) -Two U.S. Home Democratic lawmakers on Friday requested Hertz International Holdings (OTC:), and Avis Funds (NASDAQ:) Group to reply questions on rising rental automobile costs and better {industry} income.

Consultant Raja Krishnamoorthi, chairman of the Subcommittee on Financial and Shopper Coverage, and Consultant Katie Porter mentioned each rental automobile companies seem to have used their market place to boost costs as bills fell.

They mentioned in an announcement they need paperwork and data by April 1 “from each corporations explaining the will increase in rental automobile costs regardless of falling prices, in addition to an inventory of any identified investigations into these value will increase.”

The businesses didn’t instantly reply to requests for remark.

The lawmakers’ letters mentioned the monetary outcomes recommend the companies “could have prioritized most income and

shareholder payouts at customers’ expense” and “could have

engaged in predatory enterprise practices throughout the pandemic, making the most of customers who depend on reasonably priced rental automobile costs.”

Final month, Hertz posted a report adjusted revenue within the fourth quarter as demand for rental automobiles remained sturdy, however post-bankruptcy restructuring prices yielded a big internet loss.

Avis Funds mentioned in February it had report revenues https://ir.avisbudgetgroup.com/news-releases/news-release-details/avis-budget-group-reports-record-revenues-net-income-and and internet revenue within the quarter ending Dec. 31.

The upper income is the results of an industry-wide drastic improve in costs as buyer demand outstrips automobile provide with customers returning to the rental counter for leisure and enterprise journey, analysts say.