NSW Fair Trading Issues Warning For Performance, Luxury Vehicle Renters

The New South Wales Department of Fair Trading has issued a warning to anyone considering the hire of a prestige vehicle.

The warning follows a long list of complaints received by Fair Trading from customers angered by the practices of prestige vehicle hire companies and the imposition of rental conditions that they feel they did not agree to.

As with most rental cars, a fee is payable in the event that the vehicle is damaged. Some companies will hold credit card details for later use, if required, while others will preauthorise the amount payable or simply charge it to the nominated card.

It’s the latter clause that has angered consumers and triggered the warning from the Department. Some consumers of these prestige hire services claim up to $20,000 has been charged to their credit cards as a security deposit.

While the amount is instantly added to a customer’s credit card bill, fine print in some rental agreements states that a refund - if eligible - may not occur until three months after the rental has been finalised.

Laws