Court Rules Against Rental Car Fines

The Connecticut Supreme Court (search) is putting the brakes on a rental car company's use of a global positioning satellite system to fine speeding customers.

American Car Rental (search) — which operates Acme Rent-A-Car — had been fining speeders $150.

Acme said the fines were to make up for wear and tear on cars driven at excessive speeds. However, a consumer protection hearing officer determined such costs at about 37 cents per vehicle for each infraction.

State officials say Acme (search) failed to warn customers of the fines they would face if the company's GPS system showed they were speeding. Acme also automatically debited consumers' bank accounts or credit cards without notice.

The company has already returned some of the fines it collected.