No Credit Card? No Car! Avis Budget Fined $275K For Turning Away Customers: Report

Avis Budget Group Inc CAR was reportedly fined $275,000 by New York state for refusing to rent vehicles to customers who did not have credit cards.

Notably, last year, a customer complained that 74 out of 106 Avis and Budget locations across New York insisted on credit cards, while 32 accepted debit cards, reported Reuters.

Investigators stated calling several Avis locations and the company's national call center. They were repeatedly told that a "major credit card" is required for booking.

"This practice unfairly harms low-income consumers and communities of color who are less likely to own a credit card, and no one should be discriminated against because of their credit or banking status," said New York Attorney General Letitia James.

Last month, Avis reported second-quarter 2023 EPS of $11.01, above the consensus of $9.79, and sales of $3.12 billion missed the estimate of $3.19 billion, a 3.73% decrease over sales of $3.24 billion in the same period last year.

Now Read: Is Avis Budget Group A Value Play? Earnings Have This To Say

Price Action: CAR shares close lower by 3.30 at $224.14 on Tuesday.  

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