WRITTEN QUESTION E-2356/01

by Fernando Fernández Martín (PPE-DE) to the Commission

(6 August 2001)

Subject: Car-hire

Most European car-hire companies offer consumers prices which then vary considerably when the time comes to pay. More specifically, when companies are asked for information on the cost of hiring a car, the firms provide information only on the cost of hiring the vehicle and the franchise to be paid in the event of an accident and propose insurance of some kind, finally asking for the customer's credit card number as a guarantee that they will receive payment for the services rendered.

When the time comes to pay the bill, a charge is made for things which had never previously been mentioned by the car-hire company, such as airport fees, petrol, mileage, etc. Not only are consumers not warned in advance of the cost of these services and their obligation to pay for them but, given that the company concerned is in possession of their credit card number, it can charge for them even if the person concerned does not give consent, leaving customers without any means of redress.

Furthermore, it is a scandal that the cost of refilling the fuel tank can be up to four times higher than the actual market price for fuel.

Is the Commission aware of these improper practices on the part of car-hire companies? Is the Commission aware of this unfair treatment of consumers?

What regulations exist to combat these widespread improper practices? What action can consumers take if they feel that they have been defrauded in this way?

Answer given by Mr Byrne on behalf of the Commission

(29 October 2001)

The Commission is aware of problems of the kind denounced by the Honourable Member in the car-hire sector. With regard to the legal framework, the Commission Recommendation of 30 July 1997 concerning transactions by electronic payment instruments and in particular the relationship between issuer and holder(1) applies, for example, to payments made by credit card.

Article 5 of this Recommendation authorises the holder of a credit card to countermand a payment order given using the card, where this order relates to a transaction for which the amount was not determined when the order was given.

This refers more specifically to transactions in which a card number (generally the number on the card) is given by the consumer to the contracting partner as a guarantee, for example when hiring a car. The amount is left blank, as a guarantee. In order to ensure that the customer is not charged any additional fees without his consent, provision is made for the transaction to be cancelled, which is an important guarantee for the consumer.

Having carried out a study on the application of this Recommendation, the Commission is currently considering whether it would be appropriate to make provision for more binding measures in this field.

In addition, the Italian legislation transposing Council Directive 93/13/EEC on unfair terms in consumer contracts(2) could apply if the contract between the business and the consumer contained unfair terms.

Moreover, practices such as those reported by the Honourable Member could fall within the area of good faith in the performance of contracts or within unfair commercial practices, which is covered mainly by national legislation.

Given the importance of looking into these questions in greater detail, the Commission recently adopted a Green Paper on EU Consumer Protection(3).

(1) OJ L 208, 2.8.1997.

(2) OJ L 95, 21.4.1993.

(3) COM(2001) 531 final.