Consumer Watchdog: Tourists taken for rental ride

Alan and Angela Stephenson say ABC Rentals tried to evade them. Photo / Supplied

Tourists Angela and Alan Stephenson are more than $800 out of pocket after their rental car broke down halfway through their holiday.

Theirs is one of several complaints made every year about the quality and service of rental car companies, said a Ministry of Consumer Affairs spokeswoman.

The English couple, in their 60s, travelled to New Zealand in December for a long-awaited tour. They hired a car for $26 a day from ABC Car Rental in Auckland, paying the full $1972 cost by credit card in advance.

But six weeks into their 10-week trip, the Mazda Familia broke down, leaving them stranded in Motueka, near Nelson.

Angela said the company refused to give them a replacement car or refund the amount for the unused period.

"We were exasperated with them," she said.

The Stephensons hired a car from another company for $60 a day for the last four weeks of their trip.

ABC owner Steven Low said the breakdown was due to an engine fault and refused to refund the $800 because he claimed the garage that supplied it was liable.

"They created the problem, I'm just the middle man. I'm trying to claim the money back from the garage and they are refusing to pay for this," he said.

Low later said he had offered to split the bill with the garage but they had refused.

The couple had waited nine weeks for the refund, despite calling and emailing the company several times from England, said Angela.

"They're just evading us."

Problems between the rental company and their garage were nothing to do with the renter, said Ministry of Consumer Affairs spokeswoman Joanne Kearney. "If the car is not of acceptable quality then the consumer is entitled to a remedy from the car company."

They could also be liable for extra costs incurred, such as cancelled ferry bookings and additional car hire costs in the Stephensons' case, she said.

Car renters were covered under the Consumer Guarantees Act, regardless of the terms of the agreement with the hire company.

If the company refused to provide a replacement or to refund the amount for an unused period, the renters could apply for a chargeback through their bank.

If dissatisfied, they could also go to the Disputes Tribunal.

The ministry received "quite a lot of complaints" from tourists about rental cars, particularly concerning disputes about damage.

WHAT TO DO IF YOU HAVE RENTAL CAR PROBLEMS

* Almost all rental car contracts are paid for by credit card. If things go wrong, contact your card issuer to apply for a chargeback to reverse the payment. This process has strict time limits, so it is best to contact your bank as soon as possible.

* Under most rental vehicle contracts, you may be charged for damage to a vehicle during the rental period. Charges can also be made to your credit card once the vehicle is returned and you have left the country.

* If your complaint concerns safety issues relating to the vehicle you should contact the New Zealand Transport Agency.

* If the chargeback option does not resolve the dispute, you can take a claim to the Disputes Tribunal.

Source: Ministry of Consumer Affairs