Edinburgh Company Told to Improve Service - 21 March 2007

The City of Edinburgh Council has formally accepted undertakings from Capital Car Hire Ltd following their failure to refund and other delays in refunding customers deposits.  Under the Enterprise Act 2002, the Council was able to use legislation which required three of the company's officers to sign an agreement that they would refund deposits within a reasonable time as an alternative to possible court action.

Services for Communities had received complaints from consumers both in the UK and overseas. Capital Car Hire Ltd and its officers, Thomas McSweeney, David Sim and Karen Sim, have signed the undertaking issued by the Council in an attempt to resolve concerns about their poor service to date.

Since April 2006, the Council has received 31 complaints about Capital Car Hire Ltd, the majority of which were from consumers who were visiting Edinburgh.

Councillor Sheila Gilmore, Executive Member for Community Safety and Housing, said, "Car hire companies usually require consumers to leave quite substantial deposits on a credit card. Consumers need to rely on companies returning that deposit if the car is returned without any problems.  
"In many of the complaints we dealt with the company did not try to argue that the consumer was not entitled to a refund of the deposit.  However, despite that some consumers had to wait months to get their refunds and in some cases did not receive a refund at all.  This is all the more difficult if the complainant lives elsewhere in the UK or in a completely different country.

"We are very pleased therefore that Capital Car Hire Ltd have signed this undertaking.  We will of course be closely monitoring Capital Car Hire Ltd in the future to ensure that there is no repetition in similar trading behaviour.  We would urge consumers who do experience difficulties to contact Trading Standards on 0131 529 3030."

ENDS

Notes to Editors

1. The City of Edinburgh Council Services for Communities department focuses on delivering better services to communities across the city, thereby improving everyone's quality of life.

2. Trading Standards Officers used powers under Part 8 of the Enterprise Act 2002 to seek a formal undertaking from the company.  Part 8 permits certain enforcers to seek undertakings from companies who are acting in a way which may harm the collective interest of consumers.

3. If a company fails to give an undertaking or having given an undertaking fails to comply with the terms of the undertaking the Council can apply to the courts for an enforcement order requiring a company to comply.  Failure to comply with the enforcement order may amount to contempt of court.

4. The company's registered address is 56 Bankhead Crossway South, Edinburgh EH11 4EP.
5. An example of a typical complaint against the company: Consumer A hired a vehicle in September 2006 and paid a £150 deposit by credit card. The car was returned without damage the next day but the £150 deposit was withheld for no reason. A refund was finally received in March 2007. The refund coincided with the signing of the undertakings by Capital Car Hire Ltd.