My car rental is fully refundable. Why is Priceline keeping my money?
Can a car rental company just change its refund rules whenever it wants to?
Susan Thompson doesn't think so. She reserved a car through Sixt using Priceline -- a reservation that Priceline assured her was "fully refundable."
Then she canceled, and Sixt decided to keep her money.
I know a thing or two about car rental companies that change the rules halfway through the rental. I'll tell you my story in just a minute.
Thompson's case makes you wonder:
But before we get to that, let's get to Thompson's story -- and mine.
"No one has helped me"
Thompson made a prepaid by fully refundable reservation for a Sixt rental car in Lisbon in early May. She had a confirmation in writing that the car was completely refundable.
"I had to cancel the reservation for medical reasons," she said. "My travel companion was diagnosed with brain cancer."
Here's what her terms said:
Should you need to cancel your rental car reservation, you can do so directly with the rental car provider. Details are available in the cancellation policy section below.
The terms are a little difficult to follow, but here's how Thompson interpreted the language. If she canceled the reservation before the start of the rental period, she would get a full refund. If she didn't cancel before the start of the reservation, she would lose the prepaid amount. She might also lose some additional days on a shorter rental. (Related: Downgraded on my Priceline flight .)
The terms on her Priceline reservation say the same thing:
If the reservation is cancelled prior to the pick-up time, a cancellation fee may be applied, not exceeding the amount you pre-pay. If the reservation is not cancelled prior to the pick-up time and the vehicle is not picked up on the rental date, the entire pre-paid amount may be forfeited. There will be no refunds or credits for unused days.
So the bottom line -- at least to her -- was that the car was refundable.
She asked Sixt to cancel her reservation. But a representative said it couldn't cancel; it had to be done through Priceline.?
She asked Priceline, but it would not respond to her request.
"No one has helped me," she says.
Would Priceline and Sixt just keep her money?
Can a car rental company just change its rules?
Can a car rental company just change its rules? Actually, I just had a similar experience with a small, regional car rental company called NextCar.
Here's my story. I needed to rent a midsize car at the last minute in Tampa this past spring. The blue-chip agencies were charging close to $1,000 for a 14-day rental, but NextCar's rates were about half that, so I thought I'd give it a try.
Since I don't own a car, I was concerned that NextCar might require insurance. I had coverage on my credit card, but some car rental locations only accept credit card coverage if it's primary insurance -- not secondary, which kicks in after your auto insurance claim. So I checked the fine print, and NextCar only said that it required collision damage coverage, but not that it had to be primary insurance. (Here's our guide to renting a car .)
Another thing that made me uncomfortable: The rate was nonrefundable and the booking was handled by an online travel agency. But I didn't want to spend $1,000, so I reluctantly made the reservation.
When I got to the counter, a representative refused to give me the car. He said the insurance had to be primary. I asked him why that hadn't been disclosed. He said it was NextCar's policy. He said he would be happy to sell me the additional coverage for $350.
The representative offered to make a notation in my reservation and that I would probably get a refund. But I needed a car now. (Related: Look before you book on Priceline .)
Thank goodness for Allianz Rental Car Damage Protector, which sold me a policy for $135 while I was standing at the check-in counter.
But it was a lesson learned. Car rental companies can change their rules at any time and for any reason.
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You can still fight back.
Are car rentals nonrefundable?
Most car rentals are still fully refundable. But lately, there have been some changes in the way car rentals are priced. Let's go over the options.
Fully refundable
That means you can cancel your rental at any time without a penalty. Historically, most car rental reservations have been completely refundable -- no strings attached.
Partially refundable
More car rental companies, especially those working with a third party like Expedia or Booking.com , will charge a base rate to your credit card and then make the reservation refundable up to 72 hours before your pickup. If you're a no-show, you lose the amount you paid.
Nonrefundable
These are also known as prepaid reservations. In a perfect world -- perfect for the car rental companies, that is -- every reservation would be nonrefundable. Travelers' plans change, and when they do, it benefits the car rental company to keep their money. (Related: A Priceline booking problem leads to a nonrefundable hotel room — or does it? )
You can't negotiate these terms. The only thing you can do is to avoid the most onerous terms. Stay away from the prepaid rates, if possible.
How do you get a car rental company to cancel your reservation and give you a refund?
As I've already noted, car rental companies have cancellation policies that outline the fees and conditions for receiving a refund.?
If you want a refund, here are the steps you should take:
Review the cancellation policy carefully before making a reservation to avoid unexpected fees or complications.?
What if the car rental company denies your refund?
If your car rental company refuses to accept a cancellation or won't respond to your request for a refund, don't give up. Politely escalate your case to a supervisor using our executive contacts ? or consider filing a complaint with our advocacy team .
That's the trick: Be proactive, understand the policies, and follow the proper procedures. That can significantly improve your chances of receiving a fair refund for your canceled car rental reservation.
What happened to this case?
It turns out that Thompson had misread the terms of her Sixt reservation. Priceline interpreted this as a partially refundable reservation, which likely meant Priceline and Sixt would be keeping her initial deposit.
Our advocate, Dwayne Coward, asked Priceline if it could review her case one more time. After all, she had to cancel because her travel companion had been diagnosed with brain cancer. Wouldn't Sixt have a policy for extenuating circumstances such as hers?
Priceline agreed to advocate on Thompson's behalf and send a request to Sixt for it to waive its cancellation fees. And a few days later, Thompson received some good news from Priceline.
"The booking has been canceled with a full refund," it said. "You will receive the refund in 10 working days."
And less than a week later, Thompson had all her money back
That's great news. But for the rest of us, there's an important takeaway. If you haven't rented a car in a while, you need to know that your car may be partially or completely nonrefundable. Your car rental company may not be entirely clear about its rules, leaving you to guess how much you'll get back if you have to cancel.
Christopher Elliott is the founder of Elliott Advocacy , a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. He's the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report , a news site for consumers, and Elliott Confidential , a critically acclaimed newsletter about customer service. If you have a consumer problem you can't solve, contact him directly through his advocacy website . You can also follow him on Twitter , Facebook , and LinkedIn , or sign up for his daily newsletter .?
This story originally appeared in the Elliott Report under the headline, My car rental is fully refundable. Why is Priceline keeping my money ?