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Rental car company faces ACCC prosecution

The Australian Competition and Consumer Commission is to prosecute rental car company Europcar for allegedly misleading customers about how much they were liable for in the event of damage to hire cars.

ACCC has launched proceedings against Europcar in the Federal Court after examining its processes as part of a review of consumer contracts. The ACCC said unfair terms in Europcar’s rental contracts should be made invalid, including charging customers a damage liability fee – irrespective of whether they were at fault – when their hire car is damaged, stolen or if there is third party loss.

ACCC chairman Rod Sims said Europcar customers were charged a damage liability fee of up to $3650 and that it was allegedly not always reimbursed if the company recovered the money elsewhere.

Europcar has issued a statement rejecting suggestions its damage liability fee was unfair and vowing to oppose an attempt to prevent it being charged. The company also denied allegations that it engaged in misleading or deceptive conduct and made false or misleading representations, saying full disclosure of customers’ liability is available on its website.

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