SINGAPORE – The Consumers Association of Singapore (Case) has warned consumers about a car rental company after receiving complaints over security deposits that were forfeited to pay for alleged speeding and repair fees.

Case president Melvin Yong said on Friday that consumers often disputed Prestige Carz Rental’s claims on the grounds that there were no fines or notices issued by the Traffic Police or the Land Transport Authority.

There were also no other forms of speeding evidence presented to them, except the company’s records of Global Positioning System trackers installed in the vehicles.

In some cases, consumers said the car rental company engaged third-party debt collectors to engage with them.

Between July 1, 2022 and June 5 this year the consumer watchdog received 23 complaints against Prestige, Mr Yong added.

“In general, consumers complained that their security deposits ranging from $1,000 to $2,500... were forfeited.

“Some consumers also disputed claims by Prestige Carz Rental that the vehicles were damaged while under hire and the repair fees that they were asked to pay for the alleged damage,” he said.

According to Prestige’s terms and conditions, consumers who have damaged its vehicles can be charged $20,000 or more.

In several instances, affected consumers disagreed with the claims on the basis that they were not driving the vehicle at the specific location during the time of the alleged speeding.

Consumers also claimed that clauses on the forfeiture of deposits were not highlighted to them before they signed the vehicle rental agreement.

Mr Yong said Case has engaged the car rental company on several occasions to resolve the complaints and review the deposit forfeiture clauses.

“However, Prestige Carz Rental maintained their position on the basis that their insurer does not cover instances where consumers are speeding,” he added.

In one case in August 2022, the company repossessed a car from a customer on the third day of rental and presented him with an internal speeding report, according to Case.

Based on that report, Prestige claimed that the customer violated its policy and forfeited his security deposit of $1,500.

However, the customer disputed the report as the speed limits for certain roads were inaccurately reflected and there were no fines from the Traffic Police.

He sought a refund of the security deposit and two days’ worth of rental due to repossession of the car by Prestige, with no success.

On top of adhering to traffic rules, Mr Yong said consumers who intend to rent vehicles are advised to compare industry players’ fees, deposits and other charges.

He added: “In particular, they should pay attention to the terms of use, the amount they are liable to pay and the treatment of security deposits in the event of breaches to the terms of use or damage to the vehicle.”

Consumers should inspect the vehicle during collection, including checking for any damage, ensuring that it is working and familiarising themselves with the controls and features.

When returning the vehicle, they should ensure that the relevant paperwork such as a checklist is completed accurately to reflect its condition.

Consumers can consider patronising CaseTrust-Singapore Vehicle Traders Association-accredited motoring businesses as they are committed to fair trading, transparency and consumer-friendly policies, Mr Yong said.

Those who have disputes with vehicle rental companies can contact Case on 9795-8397 or via its website.