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Saudi Arabia: Customers driving car rental firms nuts

By FAHD AL-ABRI RIYADH: Car rental companies claim they are facing severe cash flow problems that may drive them to bankruptcy, blaming customers for their woes.

Mahmoud Ahmad, manager of one of the giant car rental companies in Riyadh, told Arab News most of the problems they faced came from customers. "Many of the customers are uncaring. The best ones are those who bring the car back safe but showing signs of great negligence," he said.

The manager noted that some customers rent cars to go joyriding. "They will dust the car (temporarily change the color) and change the number plates to avoid the Saher system. When they return the car, they start bargaining on the extra mileage. When we discover that the car has been misused, they refuse to pay," he said.

Ahmad said some customers would abandon the cars anywhere without informing the office of its exact location. "We may find the car later either in a bad shape or totally damaged."

The manager said some customers rent cars only to disappear completely after some time. "They will take them to villages and remote areas away from the eyes of the traffic police to dismantle them and sell the parts," he said.

According to him, some customers give the company wrong information about themselves. "Some will even give us company ID cards but when we go there, we discover that he had left the job a long time ago," he said, wondering why former employees are allowed to keep such identification.

Ahmad said some young men who are underage will send people who possess driving licenses to hire cars for them and when there is an accident, the insurance won't pay as the drivers were under the legal age for driving.

Faisal Al-Ali, an agent for a car rental company, was looking for a car that disappeared six months before Arab News met him. He said the car was rented for five days earlier this year but has gone missing ever since.

He said the customer presented to the company identity and family affairs cards that were both forgeries.

"How can we distinguish a forged card from a genuine one? Why can't the Interior Ministry make a national number for each citizen so that he is easily located," he asked.

Faisal said his company is suffering losses of more than SR2 million, most of which comes from outstanding dues from customers.

Faisal Al-Yami, a legal representative for a car rental company, said a customer rented a 2011 model car and had an accident. He said the customer took the car to a workshop and denied that the vehicle had been damaged.

Al-Yami said they called the police to complain about the customer but they were told to take the matter to the traffic police. He said when officers from the department arrived three hours later, they asked the company to take the car back to the scene of the accident or refer the matter back to the police. "When we got sick of finding a resolution, we repaired the car at our own expense. It cost us SR11,000," he said.

Ahmad Al-Otaibi, another legal representative for a car rental company, said Shariah courts can be slow in helping them pursue lawsuits against errant customers. "The courts are slow in their procedures. We are also asked to file lawsuits at civil courts close to those we are taking action against. Why are we not allowed to file lawsuits at courts where the company is headquartered?" he asked.

Al-Otaibi said the courts usually give the defendant three months to appear and when he fails to do so, he is automatically given another three months. "When the defendant fails to show up even after the second period, the case goes to the governorate which gives him yet another three months to appear," he said.

Al-Otaibi said sometimes it can take them more than a year to simply force the defendant to appear before the court. He asked for rulings on such cases to be made by the police within 24 hours.

© Arab News 2011