Car Hire Case Studies Category 1: Unclear terms and conditions when dealing with car hire companies

Transcription

1 Car Hire Case Studies Category 1: Unclear terms and conditions when dealing with car hire companies Consumers can often face problems when the terms and conditions of the contract are unclear especially when the deal includes more than one car hire company. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 232 complaints concerning unfair terms and conditions when dealing with car hire companies 1. For example: When retired couple John and Karen were planning their holiday to Portugal, they paid 122 to hire a car and were told that the cost included any excess waiver. However, when they picked up the car they found out that they were bound by the terms and conditions of another company and had to pay a significant extra charge for the excess waiver. On arrival at Alicante airport, Darren and his wife went to collect a car they d booked through an agent. However Darren failed an unexpected extra credit check by the car hire company at the airport rental desk; and was refused the car. The car hire company said the agent he originally booked through would refund him, but when he spoke to the agent it said it wasn t its responsibility. At the time Darren called Citizens Advice neither company had given him a refund. 206 words 1

2 Category 2: Unclear pricing Consumers who book a hire car can sometimes get a nasty surprise when they collect the car and are hit with unexpected, additional charges. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 488 complaints concerning unclear pricing when dealing with car hire companies 2. For example: A car hire company told Adrianna, a young woman travelling on her own to visit family in Wales, that if she didn t take out 60 of extra insurance she d be liable for a 1,000 excess if the car was damaged. She was only told about this when she arrived to pick up the car at Cardiff airport; she wasn t told when she made the original booking, nor was it in the contract s terms and conditions. Daniel, a student in his early twenties, had already paid a 700 deposit for a hire car he wanted for four weeks for travelling across Spain. However when he arrived to pick up the car at Madrid airport he was told he had to pay an extra 1,090 charge because he was under 25 years of age. He wasn t told about this when he originally made the booking and didn t have enough money to cover the extra cost. He had to cancel the agreement, and at the time he called Citizen s Advice he still hadn t been reimbursed his 700 deposit. Julie, travelling with her 18 month old baby to visit relatives in Spain, thought her car hire booking included the cost of a child seat she d asked for. When she went to collect the car at Bilbao airport she was told she had to pay an extra 80 euros for the car seat. She decided to cancel the whole transaction but was still hit with an extra 25 euros cancellation fee. Sharon booked a one-way hire car where she would pick the car up from Madrid airport and drop it off at Alicante airport. She read the terms and conditions of the contract, was given the details of the pick-up and drop-off points, and had no concerns. However when she arrived at Madrid airport the car hire company at the airport desk said she had to pay a oneway fee which was more than the entire cost of hiring the car. Sharon says this wasn t in the terms and conditions and wasn t mentioned when she made the booking. 347 words 2

3 Category 3: Fuel charges Car hire companies operate various policies on fuel charges which can sometimes be unclear and confuse consumers. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 148 complaints concerning issues around fuel tank policies and charges 3. For example: (Full/ empty tank policy) After visiting friends and family in Gibraltar, Patricia returned to the UK. Back home she was shocked to discover that the car hire company had charged 100 to her credit card. When she questioned this, the car hire company claimed the extra charge was to cover her fuel cost. Patricia argued that she d returned the car with a full tank of petrol even though the car hire company s terms and conditions stated the car should be returned with an empty tank. (Full/ full tank policy) John and Margaret hired a car for their holiday in Rhodes but they didn t travel far - just 67 miles in total. They decided to return the car to Rhodes airport without topping up the fuel and estimated they d be charged for 7 litres maximum but they were billed for almost double that amount 13 litres. (Charges for actual fuel used) Kate and her partner Pete hired a car for one day when they needed it to help a relative move home. They were told they d only be charged for the fuel they actually used. The market rate for fuel was 1.35 per litre at the time and they didn t drive far - just 50 miles - so they thought the fuel cost would be minimal. However they were billed 35 because the car hire company charged double the market rate for fuel and claimed the couple had driven 120 miles. 246 words 3

4 Category 4: Insurance concerns The details of vehicle insurance and excess waiver terms can be unclear and confusing. Consumers may sometimes feel obliged to buy insurance cover when they don t want or actually need it. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 103 complaints concerning consumers being unclear about insurance coverage 4. For example: While driving in France, Alan hit a rock which damaged the tyres of his hire car. He paid a significant fee for the repairs upfront out of his own pocket thinking he d be reimbursed by the car hire company s insurance policy. He later found out the policy didn t cover tyres. When David went to pick up his hire car from Ibiza airport he was told that tow charges weren t included on his original booking; he had to buy extra insurance costing 65 euros or risk losing his 400 euros deposit if the car broke down. He felt he had no option but to pay the extra 65 euros. 110 words 4

5 Category 5a: Disputes over damage, issues over deposits We know that disputes between consumers and car hire companies often arise over car damage, when consumers feel they ve been charged excessively or charged without justification. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 698 complaints where consumers felt car hire companies charged them unexpectedly for damage and where there were disagreements over damage 5. For example: A family returned a hire car to Alicante airport admitting that they were responsible for a slight scratch on the car. The car hire company took 1,100 from the family s account for the repair. Graham returned a hire car to Barcelona airport believing it had no damage. The car hire company thought differently; it claimed he returned it with a crack on the windscreen and retained 100 of his deposit. Later the car hire company admitted to the man it wasn t sure if it was pre-existing damage or not but still retained 100 of his deposit in any case. 101 words 5

6 Category 5b: Unauthorised payments taken and failure to refund We know that sometimes car hire companies take money for unexpected charges from consumer s debit/ credit cards without warning them beforehand. We also know that car hire companies sometimes retain consumers deposits, or fail to refund without a good reason. Between 1 April 2012 and 30 May 2014 Citizen s Advice received 1,353 complaints where consumers had an issue over their hire car deposit 6. For example: Rachel paid 235 for a hire car, of which 200 was a refundable deposit. She returned the car to Almeria airport thinking all was well but when she checked her bank statement when she was back in the UK, she noticed that she hadn t been reimbursed her 200 refundable deposit. The car hire company claimed it had refunded the deposit, although the bank disputed this. Tracy and her partner Tom booked a hire car online for pick-up from a Girona airport. When they arrived at the airport, the type of car they had asked for wasn t available. They had to travel to another airport to pick-up the car they wanted. The car hire company said it would refund their 68 as compensation - but it never did. 127 words 6