WARWICK – Five taxicab companies have been fined a total of $100,000 after it was discovered that they routinely rolled back the odometers on their vehicles, the Division of Public Utilities and Carriers said in a news release on Wednesday.
L.C. Taxi Inc., Hillside Taxi Inc., Quality Cab Inc., Royal Cab Inc. and Pawtucket Taxi Inc. , operating collectively, acknowledged that there was enough proof to show that the companies routinely rolled back the odometers on their vehicles, picked up passengers outside of their operating territories and charged passengers an illegal flat rate instead of the taximeter rate.
Taxicabs have a 200,000 mile or eight model year limit. By rolling back the odometers, the companies were able to reduce expenses and keep the vehicles on the road longer.
The companies were fined $100,000 and were stripped of four operating certificates, 19 of 39 vehicles, and placed on probation for five years.
It is the second time in the past year that the DPUC has discovered taxicab rollback ‘schemes,’ said Terrence Mercer, associate administrator, noting that the schemes potentially put passengers at risk.
A year ago, Yellow Cab was also fined $100,000 for a similar scheme.
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