To:

Office of Fair Trading

Dear Sirs,

My name is Ernesto Granese.
On the 15th of July, (over a month before I picked up my car at Milan, Malpensa) I booked an economy car with OPODO on the internet as I normally do when I travel to Italy.

I needed a car with unlimited mileage as I was planning on taking my daughter to see her godparents in Salerno, Southern Italy.

I googled "Cheap Car Hire" on the net and it came up with some quotes. Opodo offered the cheapest quote with a car from Hertz, Milan Malpensa. I specified all of the details. I read the Hertz Terms and conditions attached to the Opodo website, which indicated, though not clearly at all, that unlimited mileage was included OR that a 150 km a day was included, if it was an advance booking.

This is what T&C say on the issue of mileage on page three.

“ … All prices are fully inclusive of unlimited mileage but does not always apply to cars from Hertz Canada or Australia and does not apply to any Hertz Advance rates. Hertz Advance rates are a promotional rate which allow a discount on the standard pre-paid rates if the booking is made a minimum of 21 days in advance of the pick-up date. Rentals must include a Saturday or be a minimum of 5 days. A total mileage of 150km per day is included in the price unless travelling to the UK where it is 150 miles per day. Discount is only available on a limited number of rental cars in UK, France, Italy, Germany, Switzerland, Netherlands, Belgium, Spain and Luxembourg.'

As you can see, the information on mileage is confusing, and there is no mention of the amount of the extra charge.

I never the less decided to proceed with the payment, as I thought the price was really good. Also, had there been any limitation on the mileage, it would have shown on the front page alongside the other important details, as most hire companies are required to do.
Full text of T&C can be read at the bottom of this page. (att. 1).

I paid £ 272 pounds and got a booking confirmation on which, again, there was no mention of mileage restrictions.

When I arrived in Italy (19th of August), I mentioned to the assistant at Hertz in Milan, that I was driving to Southern Italy with lots of luggage. He kindly offered me a slightly bigger car (a Corsa diesel), which was much appreciated.
He pojnted out that the car had a dent on the left side and that there would not be any additional charge, by which I gathered he also meant the mileage. Once again, there was no mention of mileage limitations.

Even though the contract I signed at the Malpensa office did, as I later found out, mention about the limited mileage, I did not have the material time to read it through and signed it, assuming that everything was OK.

You will understand that I had already booked the car in the UK and paid for it and would not have been in the position to refuse it anyway, once in Milan. Also, I would not have booked the car in the first place had I known that unlimited mileage was not included.

When I returned the car on the 1st of September, I was charged an extra £ 214 pounds for the extra 1000 km, i.e.15c per extra km, plus tax. You can imagine how furious I was!

I have since written to both Hertz-Italy, Hertz UK (for advice), and Opodo. I have contacted MBNA Disputes, my credit card company, who have carried out an investigation but found that my signature on the rental agreement in Milan would be proof that I was aware of the extra cost involved, and that therefore, they would be unable to recover the extra charge. (att. 2)

Opodo admitted that the information provided was insufficient and have decided to withdraw their product. (att. 3).

However, they refuse to compensate me for the extra charge incurred in Italy, claiming that, even though the rental agreement did not mention about the amount that would be charged for extra mileage, it was my responsibility to check Hertz Terms and Conditions. (att. 4) . They also claim that they are not responsible for Hertz-Italy wording of the T&C.

On the other hand, Hertz-Italy claim that it is Opodo’s responsibility to display the full information for the benefit of the customer; that they have acted lawfully and that, therefore, they are not to be held responsible for lack of clarity of the information provided by Opodo. (att. 5)

The CAB (Citizens Advice Bureau) suggested that I contacted you.
They say that Opodo did not disclose all the information that the law requires and that I am right in pursuing the matter further. If rental agreements do not specify important information, such as mileage restrictions, then they are to be considered defective and, ultimately, void.

On your website you highlight the following:

1. Members must ensure that they clearly advise exactly what is included in the price quoted, with details such as excess payments which may be applicable.

2. If a member requires an excess mileage charge to be made, then the policy relating to limited mileage tariffs must be clarified and the daily mileage allowance explained clearly

3. The member will provide a clear and transparent basis on which all charges can be calculated. These include all additional charges which are not optional at the point of rental”

(* Please note the underline is mine)

Also,

4. “ The member will clarify his policy with the customer on the following:

5. Any requirements to return the vehicle at a nominated mileage

6. any circumstances related to the mileage which would require compulsory rewriting of the contract

7. Details of any increase or decrease of permitted mileage during formal or informal contract extensions

8. Mechanisms for charging or allowing for, over and under mileage at contract end or any other period during the contract

9. Members who fleet manage vehicles on behalf of customers are obliged to assist with a smooth transfer of info relating to the vehicle fleet, when required by or on behalf of the customer

10. Members must also ensure that they clearly explain the basis on which any excess mileage incurred will be calculated and charged

11. Rental agreements must be in a form and content which complies with current legislation

12. Members should always take necessary steps to ensure that the customer reads and understands all terms of the agreement and help clarify any terms as requested, before the agreement is signed.

It seems to me that Herts and Opodo, (which did not make sure that Hertz Terms and conditions were in line with current legislation) failed all or most of these guidelines which govern their code of practice.

My position is that a blatant failure to disclose important information has occurred, in violation of the basic rules which govern the Consumer Act and your regulations for members belonging to your organisation (I presume both Opodo and Hertz are members), and of new EU legislation. These rules require any business transactions, especially when they take place on the internet, to disclose all the important information on the initial rental agreement, to allow the customer to make a decision based on his requirements, in my case, an economy car with unlimited mileage. See Att. 5)

I am now asking you if you would be so kind as to investigate on my behalf on the legitimacy of the extra charge and whether I am right in asking Opodo for compensation, given that:

1. Opodo failed to display important information about the booking

2. The European directives on “Distance Selling” state that the customer has a right the right to know the cost plus any other applicable fees and you should have had written confirmation of your order. They also state that there should not be substantial difference in the rental fee quoted to the customer and actual payment.
While Opodo might claim that the prices actually depend on market fluctuations in currency that are out of their control, it seems unlikely that they could justify a difference of £ 214 .

3. Opodo have entered into an agreement with Hertz-Italy without making sure that it complies with British and European consumer regulations;

4. By withdrawing their Hertz-Italy product from their services, Opodo have admitted that information provided was insufficient

5. Most Car Hire Companies (including Hertz UK) display mileage info on their front page (att. n. 6)

Thank you for your understanding and cooperation

Ernesto Granese

PS ATTACHMENTS WILL FOLLOW IF REQUESTED