Top

Europcar car hire repair rip-off: can you get compensation?


Updated on 18 July 2017 | 1 Comment

The global car hire firm may have overcharged UK customers by as much as £30 million on repair bills.

Europcar, one of world’s biggest car and van hire operators, may have overcharged UK motorists by at least £30 million for damage to rental vehicles.

The French firm has come under fire after complaints that costs for repairs to things like windscreens were being hiked by up to 300% to boost profits. 

It has now admitted to the scale of the problem after Trading Standards began an investigation into the alleged fraudulent activity last month.

A Europcar UK spokesman said: “Following the recent commencement of an investigation, last June 23, by UK Trading Standards into repair costs levied by Europcar UK, the company is undertaking a thorough investigation and Europcar UK is fully cooperating with the authorities.

“Given the ongoing investigation Europcar cannot provide any more substantive comment at this stage. However, on the basis of its own preliminary review, Europcar’s view is that the implications of the investigation will be somewhere in the region of £30 million.”

What happens next?

The Telegraph is reporting that Trading Standards has had to pass the Europcar case to the Serious Fraud Office, which is preparing to launch a criminal inquiry against the firm.

If found guilty of a criminal offence Europcar could be fined up to 10% of its turnover and could also face compensation claims from customers impacted by the inflated costs. 

The Telegraph estimates that half a million people have been overcharged over the last decade, which would mean an average compensation payment of up to £60 for every motorist impacted.

A spokesperson for the SFO would not confirm or deny whether it was investigating Europcar, but only that it was aware of the allegations made against the firm.

What about other car hire firms?

Many are calling for a wider investigation to establish if other car hire firms might be up to the same tricks.

Alex Neill, managing director of home products and services at Which?, said: “If Europcar is found to have inflated costs for repairs, people will be outraged.

“There should be an immediate investigation to ensure others aren't doing this and customers who have been left out of pocket are compensated without delay."

How to complain about car hire firms

If you have a problem with a car hire company you should complain. If they don’t reply within a reasonable time you can take your complaint elsewhere.

The European Car Rental Conciliation Service can deal with complaints about Avis, Alamo, Budget, Europcar, Hertz, National, Firefly, Enterprise and Sixt.

For UK rentals, the British Vehicle Rental and Leasing Association (BVRLA), can help you with complaints about its members, which include a range of big and small firms from Hertz to Avis.

Compare car insurance

Read more on loveMONEY:

9 sneaky rip-offs to avoid at the car rental desk

Holiday money: how to avoid being ripped off

Easiest way to open a bank account abroad

Tourist tax: what you'll pay in major holiday hotspots

Save On Your Next Holiday
The British Airways American Express will give you 5,000 bonus Avios if you spend £1,000 within the first 3 months of card membership. Just be sure to pay your balance in full every month.
Get back on the road with low-cost car finance options for all credit ratings.

Most Recent


Comments



  • 20 July 2019

    Europcar CAR DAMAGE SCAM Unfortunately I was not aware of Europcar’s wrong doing when it comes down to making car damages up, which is public knowledge and they even faced investigations on such Scam. One of Europcar’s manager have admitted that they got bonuses for it, as published by The Telegraph, he said "“The best teams find new damage on one in five returned vehicles. Agents earn £4 per vehicle for spotting damage and can make up to £1,000 per month in peak season. That’s on top of their salary. Yet some scratches I can barely see”." We rented a car from Europcar in Hull, UK in early July 2019 and, after we returned the car, we got a GBP 500 bill for supposed damages that had nothing to do with us!!! When the car was delivered to us I flagged to Europcar's agent that there were scratches on both sides of the rear bumper as well a mark on the front one. She said that it was fine and that she had already added a note on the delivery document saying “scratches on bumper” and that would cover everything. Unfortunately we trusted her and did not take any pictures of the car. I hired the pick service for returning the car and, due to the Europcar agents being 1,5 hour late (!!!) I was unable to be there to deliver the car myself and someone else had to do it for me. The agents then note down “Damages” to the car, which later originated the bill. I have been chasing them constantly to get a refund as I am not paying for. I would be more than happy to share my story.

    REPORT This comment has been reported.
    1

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.