Car hire deposit not returned
Updated
General information, not legal advice. The outcome depends on the facts of your case.
At the desk, the rental company blocked an amount on your card, often €1,000 or more. Now the rental is over and the money has not come back, or only part of it has, with a note about damage. What you can do depends on which of two things has happened. Find out first.
Is it still a hold, or has it been charged?
A hold (pre-authorisation) is money blocked on your card, not taken. It shows as "pending" or reduces your available limit, but it is not a payment. When the company releases it, it disappears.
A charge (capture) is money actually taken. It appears as a completed payment from the rental company, sometimes for the full deposit, sometimes for part of it.
Look at your card statement or app, or ask your bank which one it is. The steps are different.
If it is still a hold
The industry's own guidelines say companies should release a pre-authorisation as soon as possible after the rental. EU payment law (PSD2, article 75) says a card issuer may block funds for an unknown amount only if you agreed to the exact amount, and must release them without undue delay once the amount is known.
- Ask the rental company in writing to confirm the car was returned without any charge, and to release the hold.
- Ask your bank how long it keeps an unclaimed hold before releasing it, and whether it can release it once the company confirms.
How long a hold lasts depends on your bank and the company, so there is no single date to quote.
If part or all of the deposit was taken for damage
Then you are dealing with a damage charge, and the usual steps apply. Write to the company, dispute the charge, and ask for:
- the check-out and check-in reports;
- the photos of the damage, with dates and times;
- when the car was inspected, and by whom;
- at least 2 repair quotes, or the real invoice, and how the amount was worked out.
Taking damage money straight out of the deposit can break the card rules:
- Visa says an estimated or extra authorisation at the desk must not include any amount for possible damage, and an advance payment may not be used for damage. A damage charge must come as a separate delayed charge, after notice within 10 business days of the return, at least 2 repair quotes and a statement that paying by card is optional, and after a 20 business day wait.
- Mastercard, as quoted by card acquirers, says a damage charge must be a separate transaction from the rental, and that you must authorise it after being told about the damage.
If the company just kept the deposit, note that in any dispute. A published consumer arbitration award from Madrid dealt with exactly this: a company that kept €1,250 of a deposit without showing the damage.
Where to go if the company does not move
- ECRCS, the free service that binds its 12 member brands (Avis, Budget, Enterprise, Europcar, Hertz, Sixt and others), if you live in the EU or the UK, rented in another EU country, booked direct and have the company's final answer. Read how ECRCS works.
- The European Consumer Centre in your country, for cross-border cases, if you live in the EU, Norway or Iceland.
- Your card issuer, if the money was taken and ECRCS is closed or has failed. See our card dispute guide. Act within about a month of the charge.
Spanish budget firms are a common source of kept deposits. If you rented from one, see our guide to Centauro, Record Go and OK Mobility.
Debit cards
Some companies accept a debit card for the deposit. With a debit card, the hold or charge comes straight from your bank balance, and some card protections are weaker than on a credit card. In the UK, Section 75 of the Consumer Credit Act applies only to credit cards. Ask your bank what applies to your card.
Honest limits
If you signed a return report that shows new damage, the company may be entitled to keep part of the deposit, and the dispute is about the amount. Nobody can promise you the money back.
If you want the letters written for your rental, our pack does that for a flat fee after a free check.