LEASEUROPE CODE OF BEST PRACTICE FOR THE CAR HIRE INDUSTRY 1. Scope This Code establishes standards of behaviour for the car hire industry. It is intended to ensure that the customer who obtains rental facilities from an adherent car rental company (hereafter the Company ) receives from the same a level of service of the highest possible standard and integrity. 2. Standards of behaviour 2.1. Before Reservation The Company will ensure that all its advertising and literature contain no misleading or inaccurate statements, that its tariffs are promoted transparently and that its terms and conditions are clear and unambiguous. The website of the Company (if any) must provide the visitor with all the relevant information in a clear, unambiguous, structured, intelligible and accurate manner. It shall in particular provide detailed information on the various insurance covers available. 2.2. Reservation At the time of reservation, the Company will inform the customer about all reservation details in a clear, simple and comprehensive way in order to avoid that a charge might, later on, be perceived by the customer as hidden, unexpected or unfair. The Company will provide information as regards the applicable tariffs and the different kinds of coverage possible. The Company will explain to the customer what the quoted rental price includes and the circumstances under which the said price may vary prior to the delivery of the vehicle. The quoted rental price must include all mandatory insurances, all other mandatory charges and applicable taxes. The Company will ensure that the customer is made fully aware, at the time of reservation, of the applicable cancellation and no show fee policies (if any). 1/11
At the end of the reservation process, the Company will recap all reservation details, specifying the applicable tariffs and confirm status. The Company will ensure that each reservation has a unique identifier making it easy to trace at any time the terms of the confirmed reservation. 2.3. The rental 2.3.1 The rental agreement and the Company s duty to inform The Company will ensure that the tariffs and conditions indicated in the rental agreement are those mentioned to the customer at the time of reservation. Any condition not explicitly disclosed to the customer at the time of reservation cannot be imposed on the customer. The Company will indicate to the customer the exact scope of the applicable standard coverage and/or insurance policy and inform the latter of the various optional insurances or coverage (if any) that can be subscribed to, as well as the scope and price thereof. For each scenario the company will explain the extent of the customer s financial responsibility if the vehicle is returned damaged or is stolen. The Company will further explain to the customer the other charges that may potentially apply (incl. the basis on which they are calculated and charged), in particular those related to: the hire of special equipment (e.g. child seat) or services refuelling excess mileage one-way rental additional driver(s) young driver(s) airports or special station surcharges a return of the vehicle outside the station a late, or outside opening hours, return of the vehicle parking and traffic fines damages caused In addition, information must be provided as regards: where and when to return the vehicle (incl. explicit mention of opening hours of the relevant office) what to do in the event of accident, break-down or theft of the vehicle possibility of one-way rental applicable restrictions or conditions for the return of the vehicle at a different station; in another country; outside a station or outside office hours applicable age or driving licence limitations applicable restrictions on driving in a given area or country applicable mileage limitations the fuel type the fuel return policy and the options available to the customer 2/11
any and all other conditions or restrictions that apply to the use of the vehicle The Company will explain to the customer the role of the deposit (cash or preauthorization) and the prepayment (if any) as well as the payment methods that are available upon return of the vehicle. The Company will give the customer the opportunity to settle the rental bill in cash. The Company will draw the customer s attention to the fact that, if the payment of the rental is made by credit card, the customer, by signing the rental agreement, authorizes the Company to charge all amounts deriving from the contract to the card account. The information and explanation provided must be clear, accurate, intelligible and properly documented. Corporate jargon must be avoided. A copy of the signed rental agreement must be given to the customer. 2.3.2. The condition of the vehicle The Company will ensure that the vehicle provided to the customer is in a safe, clean and roadworthy condition. To that effect it will maintain the vehicle in accordance with the standards recommended by the manufacturer and will, in addition, arrange for the vehicle to be inspected at appropriate intervals to determine the condition of those parts that make a significant contribution to its safe operation. All documents and accessories legally required in the country where the vehicle is collected (e.g. emergency triangles, reflective jacket, etc.) must be in the vehicle at the start of the rental. The Company will provide the customer with a written pre-rental inspection report that incorporates a diagram of the exterior and (if available) interior of the vehicle and indicates any existing damage to it. The said report also includes an inventory of the portable accessories available in/on the vehicle. The Company will expressly invite the customer to inspect the vehicle and to notify to the Company any inaccuracy in the prerental inspection report before driving off. The Company will offer the customer its help to get familiarized with the basic operation and use of the vehicle. Once the vehicle is returned, the Company will inspect it in the presence of the customer and establish a written post-rental inspection report. The said report identifies new damages and missing accessories (if any) and is signed by the customer who retains a copy. If the post-rental inspection cannot be carried out in the presence of the customer, the Company will, in the event of new damages or missing accessories for which a charge will be made, send a detailed post-rental inspection report to the customer. 3/11
3. Billing The tariffs indicated in the bill must correspond to those mentioned in the rental agreement or communicated to the customer at the time of rental, except if the conditions initially agreed upon have been modified during the hire by agreement between the parties. The bill must be broken down per each item charged and clearly indicate the reason for the different charges and the calculation methods used. To the extent possible, the customer s bill must be closed off in the presence of the customer upon return of the vehicle. If this proves not to be possible, the Company will send to the customer a detailed report of the amounts charged. The said report must indicate the procedure to follow in case the customer has any query. It must be sent as soon as possible to the customer in order not to restrict the ability of the latter to dispute any of the amounts charged. 4. Data Protection Acts All customers personally identifiable data will be held, treated and respected in accordance with prevailing data protection acts in each country. 5. Legal Rights Nothing in this Code restricts, or is intended to restrict, the rights of a complainant to pursue remedies through the courts. 4/11
FREQUENTLY ASKED QUESTIONS 1. Why is the fuel charged by the car rental company usually more expensive than in a public petrol station? If the car rental company refuels in a public fuelling station, one of its employees has to carry out the operation, which mobilizes the car and the employee and therefore has a cost. If the car rental company has its own fuelling station, the price per litre is higher than in public fuelling stations as the fuelling station installation, maintenance and running costs are amortized on a much smaller amount of litres. To avoid paying these charges, the customer always has the possibility to refuel the vehicle before returning it to the car rental company. 2. What type of insurance is automatically included in the quoted rental price? In Europe, all vehicles (including rental vehicles) are obliged, by law, have motor third party liability coverage. Many car rental companies include in their basic offer an insurance cover that goes beyond this minimum legal requirement. The quoted rental price automatically includes this cover. 3. Why do car rental companies provide the opportunity to take out optional coverage? The customer is usually given the opportunity of taking out optional coverage in order to reduce the extent of his/her financial responsibility in case the vehicle is returned damaged or is stolen. Indeed the legally required motor third party liability policy has limited scope and does not cover theft of, damage to, the rented vehicle. 4. What are the most commonly proposed coverages? Commonly proposed optional coverages include: Partial Collision Damage Waiver (CDW) An optional protection which, for an additional price, enables drivers to reduce their financial liability for damage to the vehicle as a result of collision or acts of vandalism. If the customer accepts this protection, he/she will be held liable for no more than the non-waivable excess, according to the applicable charges. 5/11
Theft Protection (TPC) An optional protection which, for an additional price, enables drivers to reduce their financial liability in the event of theft of the vehicle or theft from it. If the customer accepts this protection, he/she will be held liable for no more than the non-waivable excess for theft of the vehicle or theft from it, according to the applicable charges. Theft from the vehicle is understood to mean the absence on return of the vehicle of any of its elements or components, documents, parts, original tools or accessories and any other additional accessories (except keys of the car) that the customer may have requested. Personal Accident Insurance (PAI) An optional protection which, for an additional price, insures, up to a certain amount, the driver and the vehicle's passengers for accidental death and/or any bodily injury occurring during the rental. Certain Super PAI packages include cover for damage to, theft of, luggage or personal effects. In any case, these optional coverage do not apply if (i) you cause damage to the upper bodywork of a van or truck as a result of contact with an overhanging obstacle or having attempted to enter a tunnel, car park or similar area with low ceiling or (ii) you cause damage to the under body area of the vehicle (oil sump, transmission shaft etc..) as a result of driving on unsuitable roads or tracks or as a result of having driven the vehicle off road. 5. Can I refuse to take out the proposed optional coverage? Yes, but then you will be left more exposed in the event of damages. So, for example, if you decline partial damage waiver or complete protection against collision damage, you will be held liable for paying the repair expenses as well as towing costs, opportunity costs, etc. up to the full market value of the car. 6/11
6. How are damages billed to the customer? 7/11
7. In the event that the vehicle is returned outside the office opening hours, who is responsible for the damages caused to the vehicle after it has been returned? In such a case, the customer is responsible for the vehicle until the reopening of the office and collection of the keys by the car rental company. 8. Why does the amount charged not always correspond to the quoted price? The amount finally charged takes into account all the circumstances of the rental and therefore includes charges not necessarily anticipated at the start of the rental (e.g. charges for excess mileage, refuelling, extra days, damages, fines, etc.). The car rental company has the obligation to inform you about all these potential additional charges. 9. Why is the number of conditions and formalities higher for car rental than for many other equipment rentals? The terms & conditions and other formalities (identification, driving licence, declarations of age and identification of additional drivers etc) exist because of the high value and mobility of rented cars and because of the legal obligations which exist in connection with the driving of cars on public roads. Apart from the contractual aspects of the rental agreement itself, both the renter and the rental company are bound by local laws which they must comply with in terms of the qualification to drive, the insurance coverage in respect of others and data protection requirements of the country of rental. These obligations are generally covered by the terms & conditions in order to protect both parties. Car rental companies do make special efforts to minimise their terms & conditions and to simplify the language used, as much as is possible, consistent with these legal requirements and the need to adequately protect the rights and spell out the obligations of both parties. 10. Why am I asked to sign a rental agreement whereas I already have a confirmed reservation? The rental agreement is the contractual document by which the car rental company authorizes you to use the vehicle in accordance with the applicable terms and conditions. Details such as the vehicle registration number are usually not known at the time of reservation. Also you may decide to take out additional coverage or services when collecting the vehicle. 8/11
This explains why you are asked to sign a rental agreement before collecting the vehicle. 11. Why am I asked to sign the rental agreement without having seen the vehicle? This is done for practical reasons (to do otherwise would require a representative of the car rental company to accompany every single customer to the rented vehicle which would prevent the car rental company from providing its customers with a quick service). However the car rental company always provides you with a written pre-rental inspection report that incorporates a diagram of the exterior and (if available) of the interior of the vehicle indicating any existing damage to the vehicle as well as an inventory of the portable accessories available in/on it. You therefore have the opportunity (and indeed are strongly encouraged) to thoroughly inspect the vehicle and notify any inaccuracy in the pre-rental inspection report before driving off. If you do so, the car rental company will amend the pre-rental inspection report accordingly and you will not be held responsible for the notified items. 12. Can I cancel my reservation at no cost? Most car rental companies allow you to cancel your reservation at no cost, provided that they are notified sufficiently in advance. The car rental company has the obligation to inform you of its cancellation policy at the time of reservation. In the case of pre-paid bookings specific conditions apply and a cancellation fee may be charged. 13. Can I modify the terms of the rental agreement during the rental period? If you want to change certain terms of the agreement during the rental period (e.g. change of return dates or locations, additional driver, etc.) you may do so with the prior consent of the car rental company. The said changes will naturally impact on the amount finally charged. 9/11