Bogus car rental damage claim? Cancel your credit card, change your email address

Here’s a novel idea for eluding a bogus car rental damage claim while you’re overseas: cancel your credit card and change your email address. That advice comes to us by way of reader William Muto, who used the strategy to fend off a fraudulent claim in Frankfurt recently.

Car rental companies and other merchants can retroactively bill your credit card, and often do. The best example of that is late charges that hotels add to your bill weeks, and sometimes months after your stay. Of course, car rental companies do it, too.

Canceling your card may seem like an extreme step, but Muto explains why he did it:

We returned our car after a three week trip on time and were told to leave the keys and paperwork at a drop box unless there was an attendant, which was the case upon our return. We had gone over any problems prior to taking the car and we returned it in the condition in which we rented it.

About two weeks later we received a letter claiming that there was damage to the car in the amount of 800 euros.

I immediately canceled our credit card and asked our bank to send a new one with a different number. I emailed the Frankfurt Budget office and advised them that any damage was subsequent to our renting the car.

I inferred that they were trying to extort money from us two weeks after the fact and when we were back in the States, thousands of miles away. I also immediately changed my email address because of this scam.

I also called the Budget customer service representative in the US about the incident and while they were concerned, they indicated that the overseas operations were pretty much independently operated. I then went on line and read several horror stories about Budget and how they routinely cheat customers or abandon them when there are problems.

We are seasoned travelers who usually take lengthy car trips mostly through Europe, but needless to say we would never use Budget again and have told our friends never to use them.

Budget apparently dropped the claim.

This strategy is only likely to work under certain circumstances. First, I would only recommend using it if you were absolutely sure that the damage to the car was someone else’s fault. Second, it’s only likely to work in another country, where tracking you down would be more difficult if your email didn’t work and there were a language barrier.

And finally, there’s absolutely no guarantee that the car rental company won’t figure out a different way to collect the money, either through your drivers license (which has your mailing address) or through your passport or ID that it may have on file. So, no guarantees.

I find it unfortunate that car renters must resort to these extreme tactics to avoid fraudulent damage claims by car rental companies.

(Photo: kwer feldein/Flickr Creative Commons)

  • K

    What are the chances that this customer is now on a “do-not-rent” list in Europe and won’t be able to rent a car there again?

  • Dave

    K: You have a very good point there.

  • http://waynedayton.tripod.com Wayne Dayton

    For the most part, renting a car in Europe is a waste of time and money even in advance of the shakedown when you return it. Let’s see: tiny streets, no parking, highly-priced parking, small cars, standard transmissions, autobahns with no speed limits and drivers going like a bat-out-of-Hell, signage in foreign language…and then the Mafiosos who hold the rental car franchises charging you 2 and 3 times your contracted rate. Thank you very much, I will take the train and the bus.

  • Chris in NC

    Not only that, do we have any assurances that a foreign debt collector won’t come calling in a few months?

  • Thomas

    I went through the same thing with AOL in the U.K.. I was there on a 3 month project. When I left, I sent an email cancelling the account. For 6 months, they continued to bill my C.C., even though I had attempted to stop them by cancelling the card. I finally filed fraud charges with my bank to end the process. As Chris said, cancelling your C.C. doesn’t stop the madness!

  • Joshua Katt

    Kudos to Mr. Muto for taking this proactive action and avoiding the horror and time wasting nonsense fighting a subsequent bogus charge to his card. Foreign debt collectors? Come and get me! Its about time people stood up for themselves for what is right without fear of debt collectors and credit report entries (which you can challenge). And I think if Mr. Muto’s money is green, I think another agency would be glad to take his money. And never, ever give your real phone number out to any corporate entity, get a service that you can leave a message on like Google Voice.

    Good for you, sir!

  • http://www.sanibel-rentals.net Sylvia

    We’ve been cheated by car rental companies in this way as well. What we do now is insist that when we return the car we go over it with the rental agency rep and get a signed document that the car showed no damage on our return. That has worked thus far.

  • SeaJimm

    I had the same thing happen with National in Dusseldorf. €500+ charge for damage to the car. The only good thing is that I was returning to Dusseldorf two weeks later so I asked to inspect the car. When I arrived, the car was “not available”. I walked outside and there was the car parked with no damage. I asked to see photos of the damage and the repair receipt. Nothing was provided. I then went back to National Corporate and filed a complaint. It took about a month but the charges were then reversed.

    Two months after I rented again from Dusseldorf. I was told I had a “new” car with absolutely no damage. I went outside to inspect the vehicle and found numerous dents, dings and a small crack in the windshield. I asked for the manager to inspect the car. He looked at me and said that was “normal wear and tear”. I refused the car and went to Hertz. No problems with them, at least in Dusseldorf.

  • sam

    With so many people having easy access to digital cameras they should take photos of the car rental before you leave the lot and then when you return it.

    Simple.

  • Stoyko

    Theoretically your credit card company can still accept charges even after your account is canceled, and hold you liable for them. It’s in the fine print.

  • Jasper

    @ K: 100%. Germans are meticulous in administration.

  • Nigel

    Not only photograph the car before and after, get a rental agency employee in the pictures just to show when and where photos were taken.