Dubai Car Rental Scam

How the scam works is that you rent a car.  Either in person or they will deliver it to you.  The rate seems reasonable, probably slightly less than a major international car rental company.  You pay by cash or credit card.  Paying for a car rental by cash should be a huge red flag to most people, but in this international world, not everyone has a credit card or at least one that can be used everywhere.  It is actually still very common for many businesses to only accept cash, more so in Ajman.

You will be charged a deposit, not uncommon in the car rental world, and it will probably be about AED2000-AED3000.  Sometimes it is AED1000 for residents etc.  This is not a hold on your credit card, this is a complete charge.

The deposit is to be returned to you via Western Union transfer.  Not to your credit card.  This skirts around the legality of many credit card companies/banks being able to simply reverse the charge (also called a “chargeback”).  If you try and claim the deposit, the credit card company won’t help.

The deposit is to be returned to you after a certain number of days.  “21 working days” is pretty common.  This is because 21 working days is longer than most people will be visiting Dubai for, after they return their rental.  Many of these rental agencies don’t work Fridays, some didn’t work Thursdays (before the change in weekend).  Many may also be closed Saturday/Sunday.  Then there are public holidays.  So 21 working days ends up being about a month.

The car will likely turn up dirty, in need of maintenance and not exactly as discussed.  Wheel alignment probably out, plenty of warning lights, but it’s a car and within your budget…

By the time 21 working days arrives, you prepare to receive your refund.  You contact the company, usually via WhatsApp, and inform them that you would like your deposit back.  This is where the fun starts.

The person you dealt with via WhatsApp will ask you to instead contact another person who works for the company, probably in “accounts”.  That person will ask for your details again, and bank account information etc to transfer the money.  Tolls and speeding fines will be calculated (hopefully no fines) and deducted from your deposit.  Promises will be made.  It will be done “immediately”.  It will be only a couple of days.  You will be sent the transfer confirmation. 

Only, the money won’t come.  No transfer confirmation arrives.  So, you wait a few days, then contact again.  The excuses will start, regularly about some other renter who has caused the company’s bank accounts to be frozen.  They might even through in some casual racism.  But more promises will be made.

The promises won’t be kept, and your money won’t come.  You might be left on “read” or you might get blocked.

It is commonplace for the car rental company to send you a screenshot or photo of your transfer being processed on Western Union.  It is important to note that they can still cancel it.  There should be a tracking number, ensure that you have it.

When the money is in your account, you can close your case with the Tourist Police.  They may well close it on your behalf.  But remember – this isn’t over until the money is in your account.