car hire company withholding deposit because of "scratch"

naturebat

I naively hired a camper van for a weekend over a month ago. We signed all the paperwork but didn't check the van carefully enough, only notice major damage. We took the van back and the hire company said they'd check it later and get back to us. A couple of weeks later we call to find out when we're going to get our deposit (£1000 !!) back. This is when they tell us there was a scratch on the front passenger door. News to us! We didn't scrape it on anything. Unfortunately the van belongs to people miles away from us and was brought locally by the hire company so we can't easily check this scratch. The hire company also collected and returned the van so how do we know it wasn't them or that they are trying to get extra money to cover their petrol costs? We've asked for photos of the scratch, copies of the paperwork we signed so we can read teh small print and insurance information and 3 quotes. What are our rights? How do we know they didn't do the damage or are trying to con us! We were so naive, just excited about a weekend holiday which is costing us dear. They still have our full deposit over a month after we hired the vehicle and we're not sure how to proceed as to disputing this scratch.

All help appreciated!

StaffsSW

Did you hire it locally, but they cross-hired it from elsewhere? And who is withholding the deposit - the local company, or the hire people miles away?

When you collected the vehicle there will have been an inspection sheet signed, but more importantly when you handed it back that same inspection should have been signed as well, with any additional damage noted and again any discrepancy in the fuel levels. It is this check-in sheet that is crucial to you - if that says "no additional damage" or words to that effect, then it is up to the two hire companies to sort it out amongst themselves, as your paperwork shows that it was returned in the same condition that you took it. Without this, you really will struggle to get anywhere I'm afraid.

Also, did you take any additional insurance such as CDW (collision damage waiver - so you are not liable for any damage charges regardless of who is responsible) or Excess Reduction - which eliminates or reduces the excess you need to pay in the event of an accident.

Also check to confirm what size the scrape/scratch is - under 1"/25mm, is classed as fair wear & tear under BVRLA guidelines, anything over this is considered to be damage - http://www.bvrla.co.uk/Advice_and_Guidance/Fair_wear_and_tear_standards.aspx

naturebat

Hi, the company has already hired out their camper so they go a camper from someone else they new who is based in cumbria, we are in Leicestershire. The company we dealt with is the one who dealt with the insurance. We don't have a copy of the paperwork we signed when we hired it and didn't sign anything when we took it back. God we were so naive!!!!! I'm still waiting to get more information about this scratch. I'll definately look at your website! We took no additional insurance as the company said insurance was included in our fee.

arcon5

To be honest, if they haven't got signed paperwork confirming the scratch was there upon return, if you pursued them I think they would have problems trying to prove the scratch was caused by you.

Insist they supply a signed copy of the paperwork when checking out the vehicle - if they also haven't got this then their position becomes weaker!

Every time i've rented vehicles (vans and cars) they've always ensured the paperwork was sorted and signed to cover them as much as me.

Keep insisting on them supplying the documents. If they repeatedly fail to do so you could always turn the tables and making threats of court.

StaffsSW

naturebat wrote: »

Hi, the company has already hired out their camper so they go a camper from someone else they new who is based in cumbria, we are in Leicestershire. The company we dealt with is the one who dealt with the insurance. We don't have a copy of the paperwork we signed when we hired it and didn't sign anything when we took it back. God we were so naive!!!!! I'm still waiting to get more information about this scratch. I'll definately look at your website! We took no additional insurance as the company said insurance was included in our fee.

You can try asking the company in Leicester to see if their internal paperwork shows any extra damage between them taking it and returning it to the Cumbria depot - inter branch, or cross hired vehicles are treated in a similar manner to renting a vehicle to the public because each rental branch is responsible for the vehicle when it is not on hire.

The insurance that was included in the rental price will be the basic Third Party insurance that is a legal requirement for any vehicle on the road, privately owned or hired, but the CDW effectively brings it up to fully comp standard, and additional Excess Reduction charges limits the policy excess that hirer should pay in the event of an accident. This is much like your own car insurance policy where you have an Excess to pay in the event of an accident.
Sadly, not every rental company will explain this, as there is far more profit margin to be made on damage (and fuel) recharge than there is on the hire itself. However my personal view is that if the customer brings the vehicle back with no damage, then that CDW charge is 100% profit for the business. Trying to "sell" this idea to rental managers was pretty futile though.

It's not so much as being naive, but more not being given all the facts when it the deal was sold to you. I spent 12 years in vehicle rental working my way up from valeter and rental desk-monkey to UK operations manager, so I've seen every trick in the book, both by rental companies and customers.

The BVRLA is like the governing body or trade association for the vehicle rental industry, and although I never worked for them directly, I was on a number of the consultation boards for their process & policy standards. It can be quite a dirty industry and very easy to have your leg lifted, but the UK market is far and away better (and safer) for the consumer than it is at many of the holiday destinations abroad.

blin

Would insurance4carhire, or any other company insuring car rental excess, have covered this situation? Not giving you any paperwork looks v dodgy.

fluffnutter

This kind of story always alarms me. It's why it's absolutely crucial to properly inspect vehicles when you take receipt of them, and when you return them. It's preferable to do this inspection with a member of the company there at the time, making sure you both sign the paperwork. If no one is available to check with you, take photos.

naturebat

thanks for all your comments! I might be back once we get the paperwork through!

StaffsSW

fluffnutter wrote: »

This kind of story always alarms me. It's why it's absolutely crucial to properly inspect vehicles when you take receipt of them, and when you return them. It's preferable to do this inspection with a member of the company there at the time, making sure you both sign the paperwork. If no one is available to check with you, take photos.

For the majority of rental companies that adhere to BVRLA this is standard policy, and many now also take digital images of the vehicle prior to handover. Most of this has stemmed from the number of spurious damage claims that have been made against customers and is a small attempt to clean up the image of car rental.

But as before, even though a rental company may be attached to the BVRLA, it doesn't necessarily mean that the individual rental manager will follow the guidelines, particularly if it is a franchised operation.

StaffsSW

blin wrote: »

Would insurance4carhire, or any other company insuring car rental excess, have covered this situation? Not giving you any paperwork looks v dodgy.

Not every rental company will accept cover notes from these type of businesses, and as the hirer is the one liable for the car and subsequent charges, many of the costs still have to be met upfront before these underwriters will pay out.

Also consider that in the event of damaged vehicles, many rental companies will charge loss of use, effectively keeping the vehicle on hire until it is repaired and available to be sent out to another customer.

It's also worth noting that invoices for damage are often marked as compensatory payments, rather than a direct cost of repairing the vehicle. Not only will this include the Loss Of Use element of the charge, but also that the invoice is zero-vat rated, and also allows the rental company to decide on whether the vehicle is repaired at the time, or at end of life before it is sent off fleet.

Again, part of the reason why a small scratch can be a £500 bill.

(on the flip-side, in one mediation case I've dealt with a customer who claimed they had smashed the flashing beacon off the top of a van, and queried why they ended up with a £8000 bill. The beacon was smashed by driving the high-top van into a low bridge...! Scams are tried both ways.)

Hintza

naturebat wrote: »

A couple of weeks later we call to find out when we're going to get our deposit (£1000 !!) back.

A scratch on a door is £200-£300.

So either it is more than a scratch or they are really at it.