Car rental companies cannot keep your ID
Dubai: Car rental companies are not allowed to request cash deposits from customers, nor are they allowed to hold customers’ passports or IDs for security reasons, announced on Tuesday. the Roads and Transport Authority (RTA) in a new set of regulations for the car rental industry.
Aiming to restructure the car rental industry and protect the rights of customers and businesses, the new regulations also spell out the conditions for setting up a car rental business as well as its basic requirements.
Although no cash deposit is allowed, operators can guarantee an amount on the customer’s credit card.
Explaining the new regulations, Nasir Al Haj, director of commercial transport activities at RTA’s licensing agency, said, “Rental companies can block a certain amount on the customer’s credit card, but no cash deposit. is not allowed.
He added that there is no stipulation of minimum or maximum amount for the security deposit.
“The amount must be agreed between the client and the companies. The deposit is authorized as a guarantee for companies against fines incurred by customers. Some companies guarantee a deposit of 750 Dh, but there is no regulation on the amount, ”Al Haj said.
However, the amount of the deposit can only be blocked for a period of one month after the customer has returned the vehicle to the company.
“Most fines are credited within one month of a particular violation and therefore companies are required to release the amount immediately after 30 days,” Al Haj said.
If the fines incurred by the customer are more than the guaranteed amount and the customer is unwilling to pay, the owners have the right to take legal action, he added.
Apart from cash, car rental companies are also prohibited from holding a customer’s personal document as collateral, including passport and ID.
The regulations also prohibit rental companies from charging additional costs in the event of an accident, as all damage is covered by insurance.
“All damage is covered by insurance and customers should not pay anything in the event of an accident, however, if the rental car driver was at fault, he will have to pay the fine issued by the Dubai police.” , said Al Haj. .
Other stipulations for car rentals are that they have a significant private parking space for their vehicles, which will ensure that public parking spaces are free for others.
Another important condition for car rental is that no vehicle can be used for more than four years.
When it comes to vehicle purchasing, any car over 24 months old cannot be registered as a rental car.
For added security, Al Haj urged all customers to obtain the vehicle possession document, showing all damage, scratches and dents, if any.
Al Haj said the new regulations aim to improve business practices in this sector as well as reduce infringements and risks, while clearly defining roles and responsibilities of all stakeholders.
No passport and identity holdings allowed.
No cash deposit allowed.
The security deposit can only be made by credit card.
No minimum or maximum amount for the security deposit.
Security deposit to be released after 30 days of delivery of the vehicle.
Rental vehicles must be replaced after four years of use.
No additional costs for customers in the event of an accident.