A recent circular issued by the Dubai Corporation for Consumer Protection and Fair Trade has outlined new regulations regarding car rentals in Dubai. All car rental companies are now required to return credit card deposits and other security deposits to consumers’ accounts within 30 days of returning the vehicle.
The circular emphasizes adherence to applicable laws, conditions, and instructions related to security deposit commitments. It states that if a consumer does not possess a credit card, the rental office must accept the security deposit amount in cash or via the consumer’s debit card. Under no circumstances should a rental office process a credit card security hold as a purchase transaction.
Ahmed Ali Mousa, director of consumer protection at the Department of Economy and Tourism in Dubai, highlighted the circular’s aim to safeguard consumer rights and support the interests of all vehicle rental offices. He reiterated the requirement for rental firms to strictly adhere to relevant laws and conditions concerning security deposits.
Circular No. (1) for the year 2024 specifies that if the security deposit was paid in cash or by debit card, the rental office must refund it in the same manner, bearing any transaction transfer fees. However, rental companies are allowed to deduct actual amounts from the deposit to cover traffic violations, vehicle damages, and administrative fees.
Furthermore, the circular prohibits rental companies from imposing surcharges or transaction fees for credit card or payment application usage. Mousa emphasized that car rental firms are only permitted to charge administrative fees, with additional fees only applicable for services like car washing and Salik charges.
