Pricey limo company charging too much: Review board - Metro US

Pricey limo company charging too much: Review board

People expect limos to be pricey. But the owners of Capital Limousine have been officially warned by the Utility and Review Board for charging up to $200 an hour more than they were supposed to.

Huynh Lam has been running a limousine service since 1992. A decision released by the board Tuesday said he and his son, Alexander Lam, charged a base rate of $250 an hour — plus $100 an hour in extra “taxes and gratuities” — even though their license only allowed a basic, $150 hourly rate for up to two hours’ service.

When Lam first started the business, limousine owners were allowed to charge anything they wanted over a $57.50 hourly minimum. In 2004, the rules changed, and required 10-seater limos to be regulated under the Motor Carrier Act, which has a maximum hourly rate.

“Capital had, unfortunately, never focused on its licensed rates and had no intention of violating the regulations or the rules,” wrote board member Dawna Ring, noting no one has complained about the company’s services or rates.

“Capital has otherwise been a good carrier.”

Alexander Lam said it was his fault the company was overcharging, and began overhauling its rates after he found out they were too high on Dec. 1.

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