Case issues alert over car rental company following complaints over forfeiting of deposits
The Consumers Association of Singapore (Case) has warned consumers about a car rental company after receiving complaints over security deposits forfeited to pay for alleged speeding and repair fees.
Case president Melvin Yong said in a statement on Friday that consumers often disputed Prestige Carz Rental’s claims on the grounds that there were no fines or notices issued by the Traffic Police or the Land Transport Authority. There were also no other forms of evidence on the speeding presented to them, except the company’s records of Global Positioning System trackers installed in the vehicles.
In some cases, consumers said the car rental company had engaged the services of third-party debt collectors to collect outstanding fees from them.
Between July 1, 2022, and Monday, the consumer watchdog has received 23 complaints against Prestige Carz Rental, Mr Yong said.
“In general, consumers complained that their security deposits, ranging from $1,000 to $2,500, paid to Prestige Carz Rental were forfeited.
“Some consumers also disputed claims by Prestige Carz Rental that the vehicles were damaged while under hire and the repair fees that they were asked to pay for the alleged damage,” he said.
In several instances, affected consumers disagreed with the claims on the basis that they were not driving the vehicle at the specific location during the time of the alleged speeding.
Consumers also claimed that clauses on the forfeiture of deposits were not highlighted to them before they signed the vehicle rental agreement.
Mr Yong said Case has engaged the car rental company on several occasions for them to resolve outstanding consumer complaints and review the deposit forfeiture clauses in the company’s terms and conditions.
“However, Prestige Carz Rental maintained their position on the basis that their insurer does not cover instances where consumers are speeding,” he added.
According to Prestige Carz Rental’s terms and conditions, consumers who have damaged vehicles are liable for excess damages of $20,000 or as charged, whichever is higher.
In one case in August 2022, Prestige Carz Rental repossessed a car from a customer on the third day of rental and presented him with an internal speeding report, according to Case.
Based on that report, Prestige Carz Rental claimed that the customer had violated their policy and forfeited his security deposit of $1,500 but the customer disputed it as the speed limits for certain roads were inaccurately reflected and there were no traffic fines from the Traffic Police.
He sought a refund of the security deposit and two days’ worth of rental due to repossession of the car by Prestige Carz Rental with no success.
On top of adhering to traffic rules, Mr Yong said consumers who intend to rent vehicles are advised to compare rental fees, deposits and other charges across different vehicle companies and read the terms and conditions thoroughly.
He said: “In particular, they should pay attention to the terms of use, the amount they are liable to pay and the treatment of security deposits in the event of breaches to the terms of use or damage to the vehicle.”
Consumers should also inspect the rented vehicle carefully when collecting it. This includes checking for any existing damage, ensuring that the vehicle is working and familiarising themselves with the controls and features of the car.
When returning the rented vehicle, they should ensure that the relevant paperwork such as checklists are completed accurately to reflect the condition of the vehicle.
Consumers can consider patronising CaseTrust-Singapore Vehicle Traders Association accredited motoring businesses as they are committed to fair trading, transparency and consumer-friendly policies, Mr Yong said.
Those who encounter disputes with vehicle rental companies can approach Case by calling 9795 8397 or on their website.
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