When rental car companies come calling: know your rights before you pay

A Kelowna couple was recently handed a $9,500 demand from a national car rental company, for damage they say they did not cause. Their story, covered by CBC Go Public, is a good reminder that large companies making financial claims against consumers do not always have the evidence to back them up.

The good news is that people have more options than they think.

What happened

Kelly and Katherine Graves rented an SUV through National Car Rental, a brand owned by Enterprise Holdings, and returned it with no issues. About a week later, they were told diesel fuel had been found in the engine. Nine months after that, a letter arrived demanding $9,500.

The Graves had kept their receipts. Those receipts showed they had purchased gasoline from a pump that does not dispense diesel at all. A mechanic also confirmed the vehicle's design makes misfueling with diesel physically difficult, and that a vehicle carrying 48 litres of diesel would not have been driveable for the 53 kilometres they drove before returning it.

Despite all of this, the company kept pursuing the claim until legal counsel got involved and CBC Go Public started asking questions. Enterprise Holdings then dropped the matter entirely.

The broader issue

Rental car damage claims are not uncommon, and they do not always come with solid evidence. Companies may issue demand letters well after a rental ends, sometimes with minimal explanation of how they arrived at the amount or what investigation was conducted.

Many people feel pressure to pay. The amounts can be significant, the companies are large, and the letters often imply legal consequences. But receiving a demand letter is not the same as being legally obligated to pay.

Rental companies, like any party seeking compensation, have to show that the damage occurred, that the renter caused it, and that the repair costs are reasonable. That means evidence, not just an invoice.

What you can do

If you receive a damage claim from a rental car company:

• Photograph the vehicle thoroughly at pickup and return, including any pre-existing damage. Note the time and who accepted it back.
• Keep your fuel receipts. Timestamped receipts showing fuel type, location, and time can matter more than you'd expect.
• Do not ignore the claim, but do not simply pay it either. Ask for the company's full supporting evidence in writing and a detailed breakdown of repair costs.
• Put your questions in writing. When did the damage occur? Who inspected the vehicle? What supports the repair estimate?
• Get legal advice before responding. A law firm can assess whether the claim has merit and help you frame a response that protects your position.

You don't have to face this alone

Dealing with a large corporation over a financial dispute is stressful, particularly when a claim arrives months after the fact. But these situations are manageable with the right support.

At FH&P Lawyers, a full-service law firm in Kelowna, we help clients work through exactly these kinds of disputes, reviewing whether claims are substantiated, communicating with companies on behalf of our clients, and pushing back where it's warranted.

If you've received a rental car damage claim, or any unexpected demand for payment, and you're not sure how to respond, get in touch.

Read the full CBC Go Public story here.