Will new rules spell the end of hidden car hire charges?

There were some reasons to be cheerful over Easter – at least as far as our campaign for Safer, Fairer, Better Travel goes. Regular readers of Telegraph Travel will know that one of our readers’ major concerns and greatest causes for complaint is the way that car hire is sold and administered – especially at the pick-up point. 

Last weekend, the Competition and Markets Authority (CMA) – the UK’s primary competition and consumer authority – announced that it had completed its year-long investigation into online companies that sell car hire in this country. The CMA’s enforcement work was launched as a result of its review of car rental price comparison sites, which found many were advertising very low headline prices to customers by not including all costs. This, it said, left people paying more than expected at the checkout, without all the information about what they were paying for. 

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According to the CMA, as a result of its work to ensure that those companies comply with UK consumer protection law, all the leading websites have committed to transparent pricing that includes all compulsory costs. Where applicable, they must include mandatory charges such as fuel surcharges, young driver fees and out-of-hours pick up charges. They must also show the amounts of any deposits and insurance excesses, policy on fuel charges, and what exactly the insurance covers. 

“UK customers can be more confident they will not be hit by hidden charges and unexpected fees,” claims Michael Grenfell, the CMA executive director for enforcement.

That of course is welcome, but the bigger problem – at least as far as our readers’ feedback suggests – is what happens when you pick your car up overseas. What pressure will you come under to buy expensive insurance? How will any damage be detected and recorded, and how much will you be charged for it? 

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So, for me, the really good news about the ending of the CMA’s investigation in the UK is that it says it will now extend its inquiry and launch its first direct action against car hire companies based outside the UK. 

“Following extensive complaints from people encountering hidden costs on collection of their car at the airport abroad, the CMA is now taking enforcement action against businesses based overseas but selling directly to UK customers online.” It specifically cites “hidden charges for fuel, surprisingly high excess amounts and hidden insurance costs” among its concerns. As Grenfell pointed out: “Just because a business is not on UK soil doesn’t mean the law doesn’t apply when it sells in the UK. British consumers have a right to protection under consumer law and the CMA will work to ensure they receive it.” We await the results with interest. 

Independence at a price 

Also in the news has been a succession of major disruptions to peak season travel. 

It started with the fire in a car park shuttle bus, which led to the closure of Stansted Airport and the cancellation of dozens of flights on Good Friday – one of the busiest days of the year. And it has carried on last week with the French rail strike, which is set to carry on sporadically for the next three months, and an air traffic control glitch on Tuesday that delayed half of Europe’s flights. 

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Whenever things like this happen, it reminds me of the vulnerability of independent travellers. When things go wrong, trying to re-book flights, hotels, car hire and so on is hard enough for tour operators – even with all their contacts, experience and purchasing power. For an individual it’s a complete nightmare. What’s more, as an independent traveller, your rights are very limited, while if on the other hand you were travelling on a package holiday, the operator would have a duty to take care of you. 

Sure, an airline is legally bound to look after you if you are stranded. But there is no requirement to refund you for any losses you may incur on your accommodation, or other arrangements you have made that depended on you arriving on a certain day. And frankly you stand little chance of being looked after by French railways if your travel plans are knocked awry by the strike. 

It’s a reminder that the price we pay for independence can sometimes be inconvenience – and significant extra costs.