Caught on camera: Undercover Which? investigators expose holiday car hire firms using 'shocking pressure tactics' to 'rip off' tourists renting vehicles in Spain The consumer champion investigated Goldcar, Dollar and OK Mobility Investigators said they faced 'pressure tactics' at Alicante and Malaga Airports READ MORE: Chefs reveal dining faux pas tourists make while on holiday in Italy By Esther Marshall Published: 19:01 EDT, 5 August 2024 | Updated: 19:01 EDT, 5 August 2024 e-mail View comments Car-hire firms have been caught on hidden cameras 'using pressure tactics to rip off customers' by 'getting them to purchase unnecessary insurance'. These 'shocking practices' were 'exposed' at three rental firms in Spain with already poor reputations by undercover investigators from Which? posing as 'regular customers'. The investigation followed a survey by the consumer champion that found nine in 10 tourists feel they have been 'taken advantage of' by car hire firms.
One in six of those surveyed said they felt under 'a lot' of pressure to buy additional car insurance even if they 'already had adequate cover'. In response to the survey, covert researchers travelled to Alicante and Malaga Airports and filmed interactions with Goldcar, Dollar and OK Mobility - the companies Which? was 'most concerned about based on reviews and complaints'. The team claims it 'caught a range of pressure tactics on camera' - including 'untrue and misleading statements'.
An undercover camera investigation by the team at Which? has found car hire firms 'using pressure tactics in an attempt to rip off customers' Read More The UK's cutest harbours - from lost-in-time Cornish gems to a fairytale seaside spot in Scotland When tourists hire a car in Europe, basic insurance - known as a Collision Damage Waiver (CDW) - is always included in the rental price but 'the excess payable can be huge', says Which?. The consumer team recommends customers buy an Excess Reimbursement Policy (ERI) to claim back the excess paid with 'some of the best starting from £16'. Alternatively, car hire firms sell Super Collision Damage Waivers (SCDWs) to 'waive the excess altogether' but Which? says these often cost 'hundreds of pounds more and generally offer inferior cover'.
Which? claims that car hire firms 'stand to make huge profits from upselling these SCDW policies to customers' and that an 'industry insider' told the team that 'car hire staff are often incentivised to sell this extra insurance for a commission'. To test this, Which? pre-booked car hire, which includes basic insurance as standard, and purchased a legitimate ERI policy in advance. The team says the ERI was 'flagged to the firms during the exchanges'.
At OK Mobility at Alicante Airport, Which? says its undercover shopper was 'told incorrectly that they did not have basic insurance with their booking'. Even when the mystery shopper told the agent about the insurance included, 'the rental agent doubled down' and said 'nothing is included' as the booking was made through a third party, Rentalcars. Which? says this is 'untrue' as 'booking through a third party has no impact on insurance' and claims Rentalcars confirmed to Which? that 'cover is included with all European rentals as standard'.
Which? adds that its mystery shopper was 'alarmingly told that any damage would cost a fixed rate of €760 (£651)' even if it was a 'tiny scratch'. Even when the Which? investigator showed the agent their existing ERI policy, the agent allegedly claimed that any 'insurance has to be with the car hire company' and 'pushed harder' for the shopper to buy Ok Mobility's insurance. Which? says it was only when their shopper said they 'had to go away and think about it' that the agent 'relented' and said it was 'their choice whether or not to purchase a policy'.
When tourists hire a car in Europe, basic insurance - known as a Collision Damage Waiver (CDW) - is always included in the rental price At Goldcar, which has ranked bottom in Which's car hire survey for the past six years, an agent at Malaga Airport told Which?'s shopper that they had 'no cover', a statement that was 'completely untrue' as 'basic insurance was already included in the rental'. In Alicante, a Goldcar representative told Which? that the ERI policy 'would only cover the other vehicle in case of an accident'. This 'inaccurate statement' was repeated even when the Which? investigator 'rebuffed' their response.
Dollar, a company which also 'scored poorly' in Which?'s latest car hire survey, fared better at Alicante airport where the experience was 'smooth and pressure-free' says Which?. The company is a Hertz subsidiary and operates from Hertz desks at Alicante and Malaga airports. However, at Malaga Airport, the undercover shopper was left feeling 'misled'.
The shopper says they were told their ERI policy wasn't 'valid' and that 'the thing you bought on the internet is for nothing' - an 'untrue statement likely to worry any traveller into purchasing additional insurance', says Which?. Which's? mystery shopper was 'also told they'd be liable for up to €2,400 (£2,058/$2,628) if anything happened to the car, and that any scratch bigger than 1cm would cost between €300-€400 (£257- £343/$328-$438) to fix, plus a €50 (£42/$54) admin fee and tax on top.' The Dollar agent also claimed that 'full cover is always cheaper than minimum damage' - an 'untrue' statement, says Which?.
Upselling is not against the law but it is 'illegal to use misleading or aggressive practices that are likely to lead customers to make a purchase they would not otherwise have made under the Consumer Protection From Unfair Trading Regulations', says Which?. The consumer team believe many of 'its interactions in Spain match this description'. Rory Boland, editor of Which? Travel, said: 'Every year we hear from countless travellers who have felt ripped off and pressured by their interactions with staff at the car rental desk, and our undercover filming has uncovered absolutely shocking practices by Goldcar, Dollar and OK Mobility staff.
'Anyone hiring a car this summer should ensure they book with a reputable company or broker, and to avoid the pressure from pushy agents they should buy their own excess reimbursement policy before they travel.' The team say they 'caught a range of pressure tactics on camera' - including 'untrue and misleading statements' Goldcar has ranked bottom in Which?'s car hire survey for the past six years A spokesperson for Goldcar said: 'Goldcar Spain is, of course, disappointed that the alleged experiences have been identified by Which? Travel. 'With regard to insurance cover, the company offers premium cover to provide a seamless process should damage occur during a customer’s rental.
A customer, of course, has the right to choose to buy their cover separately, however, if this is the case they will be charged for any damages that occur during the rental and will then need to claim the costs back from the chosen provider. 'Whilst the company has not been given the opportunity to see the footage referred to by Which? Travel it is committed to investigating any incidents where a customer believes they have received service that does not match expectations for a low-cost brand. 'The company introduced a Code of Ethics for counter sales and a Guide of Good Sales Practices in 2021, both of which are reviewed annually based on customer feedback about their sales experience.
If an employee breaches the Code of Ethics, they are immediately warned and penalised economically and if breaches are repeated they can be subject to termination of their contract.' A spokesperson for Dollar said: 'Although we have not been able to view the footage, the actions described do not align with our corporate values or policies. Providing outstanding customer service is a top priority for Dollar and we regularly take steps to ensure all staff adhere to our standards.
' OK Mobility told Which?: 'OK Mobility employees always provide information about the coverage or extras that the company offers that may be of interest to the user. In this sense, OK Mobility employees offer customers the possibility of hiring coverage that allows them to limit their liability in case of damage to the vehicle and clearly explain both the price of the coverage and what exactly it consists of so that customers can freely decide whether or not it is worthwhile for them to hire such limitation of liability. It is an optional product that the customer can decide whether or not to purchase.
'OK Mobility recommends taking out coverage directly with our company, as the enterprise that owns the vehicle and therefore the only one capable of directly covering the property, to protect the client from possible extra charges in the event of damage. In 100% of cases, customers are always informed of the cover they are contracting with OK Mobility. 'The amount per damage category and vehicle group is shown in a price matrix that the company provides to its customers.
The deposit is a pre-authorization, not a direct charge. Normally, a hold is placed on the cardholder’s account, although the specific effect on the card will depend on each issuing institution. 'Once the rental is completed, the pre-authorization will be unblocked.
Depending on the operation of the card issuer, the time it takes for the unblocking to be reflected will vary, though the average time is usually between 14 to 30 days. The rental companies do not influence this process, since it depends on the financial entity issuing the card. 'We work vigorously to protect fair competition in the marketplace and the free choice of our customers based on the information presented during their interaction with OK Mobility through our agents or our online communication channels.
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