Car renting by driving enthusiasts travelling to see the world abroad, with the freedom to visit their own favourite sightseeing places, has caught on in recent years, bringing along with it also consumer dissatisfaction with car rental service providers. Complaints lodged with the Consumer Council include: extracting hefty repair cost for alleged car damage; refusing to supply car due to variation in the registered name of the driver and the name on the credit card; and failure to provide the required English version of the navigation system.
The problem is further compounded when the online car rental portal is operated by an overseas company, which the consumer may find it difficult to seek redress if dispute happens. In the absence of clearly defined responsibility, the local car rental agent may be reluctant to intervene in the dispute. Therefore, consumers should first understand the agent’s responsibility and the terms and conditions of their service.
Consumers are reminded to read and understand, prior to decision, the necessary documents required, the terms and conditions on service and prepayment, and model car rental agreements for reference. Ascertain if the rental includes insurance premium and provides adequate insurance cover. If the rental period falls within a peak tourist season, reaffirm all details before departure to ensure delivery of the car on arrival at the destination.
Case 1: Dispute over car damage and compensation
In planning for a driving trip in Europe, the complainant booked a sports car through Company A with total payment of rental cost of 2,350 Euros. During the journey, the sports car had its right-side wheel hood scratched slightly, which he duly reported the damage to the company when returning the vehicle. The staff at the time made no mention of any compensation claim. But later the complainant was shocked to discover a hefty sum of 2,000 Euros had been charged from his credit card as repair cost of the car. The complainant was utterly dissatisfied that the company had unilaterally charged such a high repair cost without his consent and a price quotation. Further, the receipt indicated that the date of repair was 2 days after the car was returned. He suspected that the company might have during the interval period rented the car out to another client who caused the additional damage. He raised his dissatisfaction with Company A but to no avail, he turned to the Council for assistance.
On receiving the complaint, the Council contacted Company A which declined to offer any assistance on grounds that the rental agreement was concluded between the complainant and the rental company abroad. Upon conciliation, the company agreed to undertake negotiation on his behalf. Company A later reported that the car involved was an expensive sports car hence the high repair cost, but in the interest of customer relations, a partial refund of 235 Euros was offered as settlement of the dispute.
Case 2: Refusal to deliver car due to differing driver’s and card holder’s names
The complainant and her friend planned a driving trip in France, and booked the car through Website B. Under the driver column she filled in her name and other personal data but the payment of 712 Euros was made through a credit card under her friend’s name. When collecting the car, she was rejected by the company upon discovery that the name of the driver was not the same as the name on the credit card. The complainant demanded a refund contending that it was the responsibility of the website to check out that the main driver and the card holder is the same person before accepting her booking. But as the money was received by Website B, she was advised to take the matter up with the website directly which later agreed to a refund of only 160 Euros.
Upon enquiry, the Council found that on Website B was categorically stated that the driver must pay a deposit with a credit card under his name. Since Website B was operated by an overseas company without a local office in Hong Kong, the complainant was advised to seek legal assistance on the next step forward.
Case 3: Failure to offer English-speaking navigation system
Through the official website of a Korean car rental Company C, the complainant booked a car before a trip to Seoul, specifying that it must be equipped with a navigation system in English. A day before he went to take delivery of the vehicle was he told that all English versions of the navigation system were rented out and only the Korean version was available. The complainant had no alternative but to look for another supplier. Since it was during a Korean holiday period, most cars were booked already and prices had gone up. After spending much time and money he managed to find a suitable car but found himself out of budget.
The complainant approached the Korea Consumer Agency to file a complaint and upon learning later that the Consumer Council has in place a complaint referral mechanism in collaboration with the Korea Consumer Agency sought the help of the Council. He demanded an apology from Company C for poor service and last-minute notification of the unavailability of the requested navigation system. His complaint was duly referred to the Korea Consumer Agency; Company C subsequently offered its apology in writing to the complainant.
To enjoy the dual pleasure of driving and travelling abroad, consumers should, prior to departure, fully understand the information and conditions governing the car rental, and pay attention to safety whilst driving as well as the rules and regulations of the destination. Here are some useful consumer tips:
Before renting a car
- Buy a travel insurance policy before departure, paying special attention to the scope of coverage and ensuring it is sufficient to cover both the driver and passengers;
- Find out also if the insurance included in the car rental covers both the driver and the third-party insurance protection to meet claims arising from death and injuries. If necessary, consumers can purchase additional insurance to cover accidental car damage, theft or repairs, etc;
- Ascertain if the package include child car seats or satellite navigation aid and other equipment.
When taking delivery and returning the car abroad
- Read carefully the rental agreement including the arrangements for the car’s return, compensation for car damage, traffic violation fines and other additional fees and charges;
- When taking delivery of the car, driver should get prepared and produce the related documents and credit card, etc;
- When taking delivery, carefully read the receipt on the date of rental, insurance, car return location, etc; and inspect the car interior, the body and mechanical condition including the tyres, lighting and braking systems, etc. If scratches are found on the car body ask the staff to make a record of the extent of the damage in writing;
- When returning the car, arrange the presence of staff as far as possible to affirm the condition of the car, upon taking delivery or returning the car, and take photos for future verification to protect your own interests in the event of dispute.
Whilst driving
- The driving conventions and habits abroad may differ from those in Hong Kong, drivers should familiarise themselves beforehand with the local traffic rules and regulations and paying special attention to personal safety;
- In driving over a long distance, drivers should allow time for rest to avoid fatigue; ideally there are at least two persons to take turns at the driving wheel.
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