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Are car rental companies preying on careless drivers?

July 1, 2008

If you don’t like paperwork, you’d better steer clear of rental cars. There’s fresh evidence that rental agencies are preying on customers who gloss over their vehicle inspections, broadsiding them with surprise charges after they’ve returned their car.

That’s what happened to Ann Hubbard, who found an unexpected bill in her mail a few weeks after bringing her car back to the San Jose, Calif., airport. If nothing else, hers is a cautionary tale that’s worth repeating.

I should have known to request a damage report when I got the car, and to have it checked when I dropped off. Perhaps it was the warm sunshine, coming from Minnesota in the middle of the winter, that distracted me.

A few weeks after I got home, I got a letter from the car rental company that there was a claim for damage on my rental car. They gave no indication of what the problem was, but asked that I call them. Honestly, the letter was done so poorly, I almost thought it was a scam.

It wasn’t — strictly speaking.

After numerous phone calls, all they could tell me was that there was damage to the driver’s side rear-view mirror and that the total repair was $210. I asked why when I returned the car, and the agent was standing right there, she wouldn’t have pointed it out to me. I was told they do not do so in order “to avoid confrontation.”

Whoa. Avoid a confrontation? That doesn’t sound right. If there’s damage to the car, you would normally fill out a damage report and ask the customer to sign it. I can see why Hubbard was suspicious. I would have been, too.

I tried to argue with them, but to no avail. It’s their word against mine and I have no proof — although I’m not certain they do either!

This has to be a scam. There was no damage to the car, certainly not to the mirror. The amount is just enough to make it worth their time and effort, yet low enough for someone like me to ask what my time is worth in fighting it.

This isn’t a new problem. But there are elements of Hubbard’s story that are troubling.

Her suggestion that car rental companies are looking for customers who failed to fill out a damage report is unsettling. Plus, the idea that an employee might not mention damage to avoid a confrontation — that’s just not right.

You don’t need me to tell you that these are difficult times for car rental companies. Could it be that these troubled agencies are instructing their employees to conduct themselves in an unethical way in order to boost earnings?

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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27 comments

  • Jasper

    I’ve had something similar. I once rented a car that had a couple of little dints in it. When I picked it up, I carefully filled out the little damage card, but alas, I must have missed one little one, because after I returned it, I received a bill at home for damage repairs. I called, and they hadn’t fixed it yet, and were more than happy to point out the “dint” to me.

    When I asked for the damage card to compare, they said they didn’t have it anymore, but they were sure I hadn’t marked it, which as far as I can remember was probably true. Arguing that during my evening pick-up I must have missed the little dint that was easier to spot in the full sun didn’t help.

    Obviously, the damage was just below the deductible so they didn’t have to deal with the insurance. They had my cc, and were just gonna charge it. Sadly, that was before my assertive days and I didn’t challenge the charge. Bye bye 300 bucks.

    Never have felt so ripped of in my life.

    [But that was years ago. I am about to pay my first luggage fee, so that memory of 'most ripped of ever' will be replaced by a newer one]

  • adamb

    Does anyone know the correct way to return a car anymore? I was terrified of getting hit with some bogus damage claim. I went over the car from head to foot afetr landing recently, and when I returned, the guy walked around the car once, and handed me my receipt. Can they really come back at you weeks later and say there was damage found that no one can justify? No one describes to me the proper way to return a car other than pull in and wait for a recipt.
    Unbelievable!

  • http://gogreentravelgreen.com Elizabeth

    I had something similar happen to me upon returning to Ireland. I tried to argue, but it was $50 and it honestly wasn’t worth the hassle. If the companies were smart they’d start nickle and diming us on damages too!

  • Jasper

    @ Elizabeth: I object to the term “nickeling and diming”. $50 is 1000 nickels and 500 dimes. It is the soft voice of that expression that makes it sound nicer that it is.

    When some dude on the street asks you for $50, you laugh him in his face, and then when he takes it, you call the cops and say you have been robbed.

    When a company does the same, apparently, it’s nickeling and diming. And according to the companies that do it, it’s completely legal too, while they refer to the fine print.

  • Ted – Phoenix Justice

    I am one of those that insists on a pick-up and a drop-off inspection, along with a copy of both signed (by me) reports. Some agents get perturbed by this, but its my money at stake and if they want my money for the rental, they need to play ball.

    Until we all start insisting on basic services, we are going to continue getting shafted without even the courtesy of a reach around. (sorry for the vulgar image, but its rather true)

  • Don J

    In Germany, be absolutely certain you get a detailed inspection sheet when you pick up the car. Upon return, the car will likely be gone over by a team of inspectors who will check for every nick — that will include all painted surfaces such as under the air dam and all along the rocker panels. You are responsible for every one when you return the car. Also, in Germany, there is a strict law that designates when a rental car loses a significant portion of it’s re-sale value. Rental companies have a policy that the car must be returned before that number of kilometers show up. Always ask what that number is. If the car you are being offered is likely to be close to that number by the time you are finished with it, ask for another one with lower kilometers on it. You are responsible for the value difference if you go over — and it is hundreds of euros!

  • JB

    I’ve had several go rounds with rental car agencies,
    1 I was upgraded to a “better” car at night on a small inner city lot. When I returned the car to the airport they immediatley spotted a tiny pellet gun hole in the windshied behind the windshield wiper. Not even visible in the day unless it rained and it does not rain in Airzona in the summer. I made a big fuss at the airport, got the name of the agency’s local attorney and sent him a letter detailing this scam, threatened to sue them in small claims, they backed off…Now I take digital photos of any and all damage to the car that I am picking up, on their lot and another set when I return it, also on their lot. So far no more prolems.
    2- I returned a car that I had driven under 75 miles showed the guy my receipt for the required fuel. He said that there would be no charge, of course, they charged, however I put the charge on my amex card and so I disputed it. it was removed and they did not dispute it…
    My advice is simply to allow enough time to ask questions, be picky about what car I will take and make sure that they know I take photos…It would be a slam dunk to take them to small claims with those photos and they know it..

  • http://ElliottBlog Tony Mack

    We just finished renting a car from Alamo at the MCO airport. When you pick it up in the garage, you go to a booth where you check out. At that point, you’d better speak up about any damage to the vehicle and have it noted on the contract before you leave. When we returned the car, my wife pulled out her camera and started taking pictures of the car, just in case we have trouble later.
    P.S. We’ll keep you posted.

  • Mike

    The only time I had any issue was the one time I rented a replacement car from Enterprise. For travel I only use Hertz or Avis. I have not experienced this from either of them. Is it possible that this is practiced more by second or third tier car rental companies than by the old line “majors?”

  • Richard Clarke

    I got a badly printed form letter accusing me of causing unspecified damage to a car, about three months after I rented it. I habitually photograph my rentals from all angles when I return them – with a copy of that days’ paper visible in each shot. I replied, pointing this out, and asking for the name of their attorneys so that I could forward the pictures. I never heard anything more.

    It’s a scam, pure and simple.

  • z

    I hope it never happens to me but I would tell them to cut the #@$#@$ bec I am having my lawyer subpeona their video surveilence tapes.

  • Carrie C.

    We rented a car from Enterprise at BWI. The agent and my husband inspected the car before we took the keys, but only my husband noticed the small dent, of course. Upon returning the vehicle a week later, the same agent asked to see our invoice while he was still behind the counter and had hardly glanced at our car. I said, “you’re looking for the ding on the driver’s front door, right?” He said he was. I said that we already had it noted. I asked him how come he “noticed” it after we returned the car and not before. He replied, “That’s why we have you inspect the car with us.” Right!

  • Jay Cee

    Three years ago I rented a Fiesta from Hertz Zurich. Returned the car six weeks later to the airport where it was inspected and I was issued a computer bill. Back home, a week later, my CC was billed for an extra SFR 500. Heated email exchange followed with the Hertz Swiss Customer Service. I was being billed for a damaged babyseat and baby poop soiled car seats. I’m 68, travelled alone and never had a babyseat or baby in the car during the location. I finally got billed for “only” SFR 200 because the car was “dirty” (it just needed a car wash, the inside was clean) and got a $50 coupon to atone for the baby fracas.

  • http://www.TheProsAndThePros.com Gary Zeune, CPA

    Want to know how to protect yourself from the ‘ding’ scam. TAKE YOUR CAMERA. When you rent the car whip out your camera and take pictures. Ask the agent to stand beside the car. Casually mention that the camera date/time stamps the pics. Do the same when you return the car. I rent 35 weeks a year and I’ve never had a rental company try to scam me. Works every time.

  • Don

    I rented from Budget in Las Vegas last month – 2 hour wait in line, all the cars were dirty and smelled terrible (food, vomit), you check out in a darkened garage where the attendant uses a mini flashlight to go over the car and mark a damage report (he missed several dings which I pointed out to him) but return in a more brightly lit area – I took pics of my return and the attendant said that was a good idea because he/she had been criticized by management for not making up enough damage claims.
    No more “Budget” – never have these problems with Hertz or Avis.

  • Carver Farrow

    I’ve been very fortunate. In 10 years of rentals, I have never been “dinged”. I limit my rentals to Hertz and occassionally Budget. I have been a long term member of both loyalty programs.

  • http://go.carrentals.co.uk/blog Gareth

    I had a similar problem in Barcelona a couple of years ago – checked the car out in the dark, where there was nothing on the damage report but I noticed a dink on the car the following morning. I took a picture and when we got back to the hold I was completely awaiting a confrontation.

    Fortunately the inspector was too hot and couldn’t care less, and gave me a copy of the damage report – stating it was fine!

  • http://easyluxuryvacations.com Joyce

    I’ve never had a problem returning a rental, but thanks everyone for sharing your experiences and ideas. Have never taken pictures, but will from now on to prevent going through what several of you have.

  • http://Ireland Paula

    We have just returned from 16 days in Ireland. Before we checked out the car in Belfast, I took photographs of the car. I made a joke and made the car rep stand in the picture with my husband. I used my cell phone and played it like a joke. Two weeks later we returned the car in Dublin. They started to go on about dings in dents. We listened to his well scripted monologue. Finally, as I didn’t want to be late for our Guniess tour, I took out my cell phone and showed him the car photographs. He didn’t know were to go, except to tell us we owned them more money for gas. I got home, called AMEX and Hertz and they took care of the revenge surcharges.

  • Skip

    For years I have done a personal inspection of each and every rental car I use, and make careful notes on the forms each time I check the car out and check it back in–and I take my sweet time about it too, so they remember who I am.

    This past year I have begun including photo evidence of the inspection, along with the attendant included in at least one photo. It’s more work, but it has saved me a world of grief.

  • http://cheap-car-rental-tenerife.blogspot.com Tenerife rentals

    Remember when people rented cars mainly for the purpose of vacation transportation? These days, things have changed. The car rental industry has grown by leaps and bounds; the most current estimates available put annual car rental revenue at a whopping $17.6 billion. Cheap Car Rental Tenerife http://cheap-car-rental-tenerife.blogspot.com

  • http://www.econorental.net Jeep and car rentals in St. Lucia

    in my opinion, car rental companies must have seen this business in light of the careless drivers.

  • Treva

    I just recently rented from a company in San diego named Travcar rental and they did a number on me by authorizing my charges for $190.00 over my $33.00 estimated charges. Well they did not tell me this and they did not have that in the contract I signed. I called them to find out why they did this and they told me that was standard across the board, which I dont believe because they have to tell you what your charges are, well ironically after that discussion they told me that there was new damage to the vehicle that there was a dent on the bumber and I told them that when I picked up the car there was scratches all over the car and I told the attendant that and he said they knew about that. Well this hole situation put me in a bind because I could not rent from another company when I was stranded because of this credit card situation, I decided that I did not trust them and closed the credit card and the credit card company said I can dispute the charges. I do not mind paying them the $33.00 what I owe but them trying to add the ding on the bumper and make more money off of me is ridiculous. By the way I like the camera idea, this is the first time this happened to me and i have rented quite a few rental cars believe me I will be taking the camera with me next time.

    Thanks

    Treva

  • Ashley

    I recently had a troubling experience in Ireland (apparently notorious for scamming tourists). I rented a car from the Dublin airport, a VW Golf, and it was acting funny from the start. It stalled when the clutch was almost fully depressed and the gears would grind even when the clutch was fully depressed. At first I dismissed the stalling as learning a new cars behavior. But after only driving the vehicle for 9km, the clutch burnt out leaving me stranded. Keep in mind I have years of experience on a stick shift as it was the first car I learned how to drive. I filled out an incident report and was told I would be contacted within days if there were any issues. I left Ireland for the USA 16 days later. 6 weeks after THAT, I received a bill in the mail. They had already charged my credit card $1801.13!!! This was over $200 to tow the vehicle from Dublin to Galway (apparently there are no car shops in the country’s capital?) along with $700 for 8 hours of labor, plus parts, an a “loss of car hire” fee. Even insurance companies get to assess damage before paying. Why wasn’t I afforded this opportunity? There is no way I burned out a clutch in only 9 km and there is no way it should cost almost $2K to repair. I’m stuck because I can’t fight an international battle. Budget of the U.S says they have no jurisdiction. I’ve filed a complaint to the Better Business Bureau and the Federal Trade Commission and have sent certified letters to the car agency. It sucks because for the last month I have been raving about how wonderful Ireland was. So beautiful and everyone was so nice. I even had my coworker convinced she would retire there (she retires next month). This has completely ruined my impression of the country and of Budget. To them, $1800 is less than they will lose from my office not renting from them anymore… but to me, $1800 is everything!

  • Ric

    Do not rent from Budget – and especially not in Ireland. Budget is the only ‘large’ rental company that is 100% franchise. There is no central company with which to file a complaint, as with the other large rental companies – you are dealing only with a local or regional small business who have paid a franchise fee so that they can use their signage. With Budget, you are 100% responsible for all expenses that may be incurred once you drive the vehicle from their lot. If the engine falls out of the vehicle 10 minutes later, or the clutch burns out as detailed above, the repair is entirely done at your expense. With Hertiz (National, Avis, etc), if the engine falls out of the vehicle, they will hire someone to gather you and get you another vehicle. The other majors will not charge you for absurd vehicle malfunctions. This appears to be a little known fact. SPREAD THE WORD. If you do have a malfunction with a Budget vehicle, you are far better off going to an independent garage and arranging the repair yourself, for Budget will soak you clean if they are left to repair ‘your’ vehicle.

  • Jeff Price

    I’ve just had a similar problem with Budget in Belfast. When I returned the car, there were two scuff marks on the rear bumper. My wife rubbed one of them off with her handkerchief! The other one was very superficial and as I have two cars of a similar colour, I know it would have polished out easily. When I returned to the compound to take photographs they were most reluctant to tell me where the car was. A month later I have received a bill/estimate for £261 which suggests that it will take four and a half hours to ‘repair’! It seems like they have a licence to print money. DO NOT USE BUDGET! They may seem cheap but….

  • Zack

    My daughter rented a car from Enterprise while her car was being reparired from a minor accident. The first car she got smelled like smoke and had stains on some of the seats, so she took it back the next day to get a replacment. The agent told her the replacement car lookd ok and didn’t go out with her to inspect it and this being my daughters first rental she looked the dark navy blue car over in the rain and didn’t see anything. When she returned it the agent saw a samll dent on the truck by the key hole that you could only see if you looked at it the right way — I know, I was there when she returned the car. They charge my daughter with the damage and wrote up a damage report and charge her $500 deposit untill they could get a repair estimate. I looked at my daughter pink copy of the rental contract and on the second auto diagram it only had a few items filled out and nothing about whether the car had damage or not when she took it off the lot. I went to the rental agent the bext day and ask for the white original copy of the contract (which he made me a copy) and it showed all the info on the second auto diagram was filled in now, showing no damage to the car. He also said there was not damage report on the car from the previous rentere. My contention here is that when my daughter picked up the second car he put her pink contract copy under the original white copy, but did not completely fill it out. Once she returned the car and he found the damage (which he may have already know about) he altered/fradulently the original white page of the contrct and filled in the rest of the information to say the car had no damage. This way he was able to get her to pay for the damage, which so far the damage repair came to guess what — just over $500, plus admin fee=$100 and other misc fees have the bill up to almost $800 now. We have written the Enterprise Damage Recover Unit and explainted all of this in writting, but they just send another bill saying pay for the damage. We don’t believe the damage occurred while my daughter had the card, but was missed when she picked it up because of the cars dark color and the weather conditions at the time. I am not sure what to do at this point other than pay for damage to a car that I don’t believe my daughter did ( she is 25). I believe the original copy of the contract was fraudently altered to make it look like the car had no damage when she got it, but my daughter was never provided with a written contact fullly completed that showed on her pink copy that it (did or did not) have damage at the time she picked it up. Do you have any advise on how to handle this situation at this point or do we just end up paying a bill for something that she did not do ?? Thanks for reviewing this situation.

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