END OF THE HOLIDAY HIRE CAR RIP-OFFS

Crackdown on rental cheats after Mail investigation

FOREIGN car hire firms which prey on British tourists face an unprecedented crackdown after a surge in complaints and a Daily Mail investigation.

The competition watchdog is taking its first direct action against companies outside the UK, it revealed yesterday.

The Competition and Markets Authority said the move follows ‘extensive complaints’ from customers hit by ‘hidden costs’ when collecting their car at the airport.

Although the CMA is not yet allowed to name and shame the foreign firms involved, it paid tribute to Money Mail’s campaign against car hire rip-offs, saying: ‘Complaints from Mail readers... [help us] go a long way to improving the [car hire] sector.’

Common grievances include sneaky charges for fuel, huge excess charges for damaged cars and ‘hidden’ insurance costs.

The crackdown follows a major review of price comparison websites used by millions

to rent a car abroad. The CMA says this leaves them paying more than expected, and without the full information required under consumer protection law about what they were paying for.

In the UK, the watchdog has taken action against three websites, forcing them to make their costs more transparent.

Online travel agent P&P Associates, and price comparison sites Affordable Car Hire and Flexiblecarhire.com, have made legally binding commitments to include all compulsory charges in their car quotes.

This includes mandatory fees such as fuel surcharges, extra fees for younger drivers and for picking up or dropping off cars outside the agreed time.

Data collected by the UK European Consumer Centre between last March and this February showed a 35.6 per cent increase in complaints and inquiries from UK consumers compared with the previous year.

The main grievances from those hiring cars abroad included disputed insurance claims, overpriced or unrequested excess waiver policies, shock charges for damaging the car and hidden charges for fuel.

Michael Grenfell, CMA executive director for enforcement, said: ‘The CMA received a high number of complaints and evidence from members of the public, including those supplied by Daily Mail readers.

‘Just because a business is not on UK soil doesn’t mean the law doesn’t apply when it sells in the UK.

‘British consumers have a right to protection under consumer law and the CMA will work to ensure they receive it. UK customers can now be more confident that what they see is what they will pay.’

Money Mail and consumer campaign groups have for years exposed the tactics used by car hire firms to squeeze more money out of customers at airports.

Often tired after a long journey – or with young children in tow – holidaymakers are seen as easy targets by some foreign firms.

Young drivers renting a medium-sized car for a week face a £237 extra fee at Nice Airport if they book with Europcar, according to analysis by the online insurer icarhireinsurance.com, while Hertz charges £86 for an extra driver at Barcelona Airport.

Some firms also impose huge excess insurance charges – the amount of a claim that the customer has to pay if the rental vehicle is damaged – which leaves some drivers facing bills of up to £2,200.

Holidaymakers face an average excess of £1,000, which they can be forced to pay even if there is minor damage to the car.

This prospect is used to scare customers into taking out excess waiver insurance.

Hertz charges £260 for a week – more than £37 a day – for this for customers picking up a car at the airport in Barcelona, the icarhireinsurance.com study found.

Holidaymakers can also be stung by hefty charges if cars are not returned with a full tank of fuel. Europcar levies a surcharge of £1.60 per litre – £40 for half a tank of petrol.

Leon Livermore, chief executive of the Chartered Trading Standards Institute, said: ‘The CMA guidance and action will ensure businesses are transparent so consumers can make an informed decision.’

Alex Neill, from consumer group Which?, said: ‘It’s good to see the CMA take action to tackle this problem.

‘However, our recent investigation into the extortionate amount of money some people are having to pay for hire car repairs shows the industry still has more work to do to prevent customers being ripped off.’

Guy Anker, managing editor at Money savingexpert said: ‘It’s about time rip-off charges were tackled in this manner and these companies were dealt with.’