Car rental firm delays tourist’s deposit return; DED to the rescue

Car rental companies in Dubai are obliged to return deposits collected as guarantees from the consumers immediately after the specified lease period.

The Department of Economic Development (DED) warned that it would take legal action against the car rental companies violating its rules and regulations, reported Arabic daily ‘Emarat Al Youm’.

Recently, the DED received a complaint from a tourist against a rental company for delayed refunds despite agreement clearly stating the amount and the time for returning the deposits. The department confirmed that it resolved the complaint and the money was refunded to the plaintiff.

Ahmed Al-Awadhi, Senior Director of Field Control Section at DED, said the Department received complaints that car rental firms were not returning the cash deposits to consumers after the customer had returned vehicle to the company.

Highlighting the tourist’s complaint, Al-Awadhi told the Arabic daily that despite numerous attempts, the consumer didn’t receive his funds back from the company, therefore, the tourist filed a complaint against the company to the DED’s Consumer Protection Department, requesting to resolve the issue and get his funds.

Following a review of the complaint by the DED officials, it was revealed that the company didn’t comply with the terms and conditions of the contract, Al Awadhi said, adding that the tourist had to return home within few days of the complaint but could not due to delay in payment by the company.

Al-Awadhi issued instruction and DED’s Consumer Protection Department immediately followed it up with the company to release the deposit within the agreed time prescribed in the agreement.

He warned that legal action would be taken against those firms which are not complying with the department’s rules and regulations.

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