Renting a Car in Dubai? Learn About New Circular from UAE Authorities
The Circular: Significant Change For Car Rentals In Dubai
Dubai’s car rental procedure has been effected recently with a major shift. The Dubai Corporation for Consumer Protection and Fair Trade has issued a new circular that directly hits the operations going on by all the rental companies. We can fairly say that after this circular car rental companies would have to make drastic changes in their sales policy to avoid heavy fines imposed by UAE’ government. Let’s talk about the key points:
Deposit Refund:
What Changed? All car rental companies in Dubai are now required to release credit card deposits and other security deposits to consumers’ accounts within 30 days after the vehicle is returned.
Why? The circular aims to protect consumer rights and promote fairness in the rental process.
How? If a consumer doesn’t have a credit card, the rental office can receive the security deposit amount in cash or from the consumer’s debit card. Rental company will refund back the deposit amount either in cash or through a wired transfer and rental company will bear the transaction fee in such case. More importantly, rental offices cannot process a credit card security hold as a purchase transaction.
Refund Mechanism:
According to Circular No. (1) for the year 2024, if a customer paid the security deposit amount in cash or by debit card, the vehicle rental office must refund the security deposit amount either in cash or via wired fund transfer. The rental company bears the transfer fee for transaction associated with the refund process.
Exceptions and Deductions:
While rental companies must promptly refund deposits. However, they are permitted to deduct actual amounts from the security deposit for:
- Traffic Violations: Covering fines related to traffic violations during the rental period.
- Damages: Addressing damages to the rental vehicle.
- Administrative Fees: Limited to administrative charges only.
No Surcharge for Credit Cards In Circular:
The circular explicitly prohibits imposing any surcharge or transaction fee for using credit cards or payment applications. Rental firms must adhere to this rule.
Additional Charges:
Car rental companies are not allowed to take additional fees beyond administrative charges. For instance:
- Car Wash: If the vehicle needs cleaning, the company may charge a nominal washing fee (around AED 50-60).
- Salik Toll: The Salik toll fee may also apply.
Customer’s Perspective In Circular
As a consumer, this circular ensures greater transparency and faster deposit refunds. When renting a car in Dubai, keep these points in mind:
- Know Your Rights: Familiarize yourself with the circular’s provisions to protect your interests.
- Choose Wisely: Always opt for reputable car rental services that comply with the new rules.
- Enjoy Hassle-Free Rentals: With timely refunds and clear guidelines, your car rental experience in Dubai just got better. Always chose Optimum Car Rentals for your safety in deposits and vehicles.
Remember, the circular is designed to benefit both consumers and rental offices. So, next time you hit the road in Dubai, rest assured that your deposit is in safe hands! 🚗💨