Car rental companies fined $36,500 for ripping off customers

Two Christchurch rental car companies have been fined $36,500 after charging tourists for vehicle repairs that never occurred or were exaggerated.

Fines were imposed on Euro Car Rental NZ Ltd and Affinity Car Rentals NZ Ltd and their shareholders and directors Kylee and Gary Harris in the Christchurch District Court yesterday. They had earlier pleaded guilty to 18 representative charges of breaching the Fair Trading Act.

The Commerce Commission began investigating the two firms last year after complaints from customers.

It found Euro Car Rental customers had credit-card charges relating to repairs for damage that either had not happened or had been exaggerated. Some customers were also charged extras, such as administration and off-road fees, which were not covered in the rental agreements.

Others said they had booked late-model cars, but were given cars up to eight years old.

Affinity also claimed on its website and in its office that it was Qualmark-endorsed, but the endorsement had expired.

Judge Jane Farish said the offending was mostly directed at overseas tourists. The Harrises were "extremely lucky" not to be facing criminal charges for their "significant offending", she said.

Commission enforcement general manager Kate Morrison said New Zealand's tourist destination image was harmed when businesses misled customers and did not compete fairly.

"The car rental industry is a central part of New Zealand's travel sector."

The judge ordered Euro Car Rental to pay a $20,000 fine and $3725 in reparation to affected customers. Affinity Car Rentals was fined $1500 and ordered to pay reparation of $2025. Kylee Harris was fined $10,000, while her husband was fined $5000. They were also ordered to each pay $600 in solicitors' fees and $130 court costs.

- © Fairfax NZ News