Within 30 days of the vehicle being returned, customers have requested that credit cards and other deposits be released to the accounts of all automobile rental firms in Dubai.
All of the car rental companies in the emirate received a circular from the Dubai Corporation for Consumer Protection and Fair Trade, which is part of the Department of Economy and Tourism. The circular contained instructions regarding security deposit commitments and applicable legislation. The circular also stated that the rental office would accept cash or the consumer’s debit card as payment for the security deposit if the customer does not have a credit card.
“In no event, may a rental office process a credit card security hold as a purchase transaction,”
it said.
Ahmed Ali Mousa, director of consumer protection at the Department of Economy and Tourism in Dubai, emphasized the circular’s aim to safeguard consumer rights and support the interests of all vehicle rental offices. He reiterated the requirement for rental firms to adhere to laws and regulations regarding security deposits. Mousa clarified that car rental companies should only place a hold on security deposits without processing a purchase transaction. If cash deposits are taken, companies must return them via bank transfer or exchange, with applicable transfer fees borne by the rental office.
According to Circular No. (1) for the year 2024, if the customer paid the security deposit amount in cash or by debit card, the vehicle rental office shall refund the security deposit amount in cash or via wired fund transfer. And the vehicle rental company shall be obligated to bear the transaction transfer fee.
It did, however, emphasize that in addition to administrative costs, car rental businesses are allowed to take actual sums from the security deposits given by customers to cover traffic infractions and vehicle damage sustained during the rental time.
According to the circular, charging more for transactions when utilizing credit cards or payment apps is not permitted.
Additionally, Ahmad Ali Mousa stated that the only costs that automobile rental companies are permitted to charge are administrative ones.
“ If the car needs to be washed, then the company will charge a washing amount of around Dh50-60 and they’ll charge the Salik amount,”
