Consumer complaints related to car rentals have increased considerably in the past couple of years.
The most common problems European consumers face in this sector usually concern vague or unclear terms and conditions and unplanned extra costs.
A few weeks ago, the European Commission announced that thanks to a joint action with national enforcement authorities, five major car rental companies have agreed to significantly review how they treat customers.
Some of the main improvements pledged by these companies include more transparency when consumers book online.
More specifically, these car companies have committed to provide clearer information to consumers with regards to mandatory charges and optional extras and also clearer information about key rental terms and requirements, including deposits charged on the consumer’s card.
Through this improved transparency, consumers can better shop around for the best deal. This will also avoid any surprises at the pick-up desk.
The car companies have also pledged to provide better information to consumers at the booking stage regarding their insurance products, including their prices, exclusions and applicable excesses.
The other commitments promise improved and more transparent fuel policies; clearer and fairer vehicle inspection processes and how consumers can help minimise potential disputes about damage; as well as improved practices for taking additional charges from customers, whereby consumers will be given a reasonable opportunity to challenge any damage before any payment is taken.
The most common problems European consumers face in this sector usually concern vague or unclear terms and conditions and unplanned extra costs
Furthermore, regarding damages on cars, the car rental companies have pledged that consumers won’t be charged disproportionate costs.
The need for this joint action was a result of a steady increase of consumer complaints on car rental services booked in a EU member state. The European Commission has published that while in 2012 there were 1,050 complaints registered with European Consumer Centres against car rental companies, in 2014 the complaints increased to 1,750.
Hence, a dialogue was set up between the EU’s national enforcement authorities and the top five car rental companies operating in the EU: Avis-Budget, Enterprise, Europcar, Hertz and Sixt.
The joint action focused on these five major car rental companies because of their size and large proportion of the EU market that they cover. Following the successful outcome of the joint action, the EU trade association Leaseurope, which is an umbrella body for both the leasing and automatic rental industries in Europe and is composed of 45 member trade associations in 33 countries, have agreed to further develop their practical guidelines for the whole car rental business sector.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.