Driver accused of speeding by car rental company, allegedly told to pay $3,000 for 'breach of contract'

A man who rented a car for two days was allegedly hit with a $3,000 bill by a vehicle rental company, which claimed that he breached the contract by speeding. 

The 20-year-old, who wishes to be only known as J, detailed his experience with a car rental company which he had found on Carousell to Facebook group Complaint Singapore on Aug 18.

The driver wrote that the company in question is located around the Ang Mo Kio area and registered with the Accounting and Corporate Regulatory Authority (Acra).

J added that the contract which he signed had "amateurish language" and was "highly likely" to not be legally enforceable.

Speaking to AsiaOne, J said that he had rented a Volkswagen Scirocco from the company for $199 for two days.

Only car listed for rent

A check on the company's Carousell profile, which was created about five months ago, showed that it was the only car listed for rent.

The company also has a five-star rating and multiple positive reviews from previous customers.

J claimed that the business owner had demanded additional payment when he went to check the car towards the end of the rental period.

"He basically told me I went above the legal speed limit in Singapore roads 20 times. Each time [I went past the limit], I had to pay $150 as stated in his 'contract'. This amounted to $3,000," he said.

"If I didn't [pay], he said he would send the information captured on his GPS tracker to the police and I would get a higher penalty and possibly demerit points."

The disgruntled customer said that he will not be paying the $3,000 and will wait until the company contacts him again before taking any action.

When contacted by AsiaOne, the company owner stated that he had lodged a police report against J but declined to comment any further.

Rise in cheap car rental listings

In his post, J also addressed a rise in Carousell listings with attractive 'sporty' rental cars going for cheap rates.

"Most do not ask for a deposit, but instead ask for a reservation fee to confirm the dates [the car is] needed. When you're there, you pay the balance amount."

He added that a thorough search would reveal that these companies have mostly fake reviews that paint them in a positive light.

"Just beware and do not fall prey to such scams. Go for legitimate rental companies, not those that are simply registered under Acra with their own address."

A check by AsiaOne on Carousell showed a variety of car rental listings by accounts created as long as nine years ago, to one-week-old accounts.

While the former have high ratings from customers, the latter seem to have little or no reviews.

Some netizens felt sympathetic for J's plight and wished him the best, with some others even offering advice on how to handle the matter.

One netizen commented: "I hope you get your justice and you did not pay for the scam."

Another commentor advised J to bring the matter to the small claims tribunal and alert the police afterwards.

"Once u register your case and [the company] demands money from you again, call the police and inform [them] that u have filed a case with the tribunal," he wrote.

In July, a driver made a Facebook post claiming that he was "scammed" of his $3,000 deposit by a car rental company which he found on Carousell.

He had also been accused of speeding in the rental car after the company used a GPS tracker placed in the vehicle to check how fast he was driving.

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bhavya.rawat@asiaone.com