The UAE announces new rules for car rental

ahmed atef - | UAE

It has been requested that all of the car rental firms in Dubai release credit cards and other deposits to the accounts of customers within thirty days of the vehicle being returned.

In order to ensure that all automobile rental firms in the emirate comply with the appropriate laws, regulations, and instructions pertaining to obligations with security deposits, the Dubai Corporation for Consumer Protection and Fair Trade, which works under the Department of Economy and Tourism, issued a circular to all of the companies in the emirate.

The customer does not have a credit card

In the event that the customer does not possess a credit card, the rental office is required to acquire the security deposit amount either in cash or via debit card from the customer. This information was included in the official circular. A rental office is not permitted to conduct a credit card security hold as a purchase transaction under any circumstances, according to the statement.

Compliance with laws, conditions and instructions

They are reminded that they are required to adhere to the applicable laws, conditions, and instructions related to the commitment related to security deposit, as stated by Ahmed Ali Mousa, director of consumer protection at the Department of Economy and Tourism in Dubai. Mousa stated that the primary purpose of the circular was to protect consumer rights and promote the interest of all vehicle rental offices around the world.

When renting a car, companies are required to put a security deposit on hold. A transaction involving a purchase should not be made by them. Whenever they accept cash payments, it is the responsibility of the companies to reimburse the deposit either through a bank transfer or an exchange payment. Additionally, the charge for the transfer will be payable to the office that handles the car rental," he stated in an interview with Khaleej Times.

Additionally, in accordance with Circular No. (1) for the year 2024, the vehicle rental office is required to repay the security deposit amount in cash or by a wired money transfer if the customer paid the security deposit amount using a debit card or cash. Additionally, the transaction transfer cost is going to be the responsibility of the organization that is renting the vehicle.

It was underlined, however, that the firms that rent out automobiles are allowed to deduct actual amounts from the security deposits that customers pay in order to cover violations of traffic laws and damages to vehicles that occur during the rental term, in addition to the costs that are charged for administrative administration.

It was stated in the circular that it is against the law to impose any additional transaction fees or surcharges regarding the use of payment applications or credit cards.

Collect any additional costs

It was also mentioned by Ahmad Ali Mousa that car rental companies are not permitted to charge any additional costs, with the exception of administrative expenses.

The company will charge a washing price of approximately Dh50-60, and they will charge the Salik amount, he added. "If the car needs to be washed, then the company will charge the Salik amount."

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