Every now and again it's nice to fight the man, and it's especially nice if you fight the man and win. I'd like to take some time now to talk about the fraud-ridden, unethical company that is Alamo Rent A Car. Read on. This one will save you a few bucks and heartache, I guarantee it. So here is the deal at Alamo. You pick up a car, you aren't given any inspection paperwork, and told to go on your merry way. When you choose to return the car, one of three things can take place:
1. The person notices nothing wrong, they sign you in, you catch your flight.
2. They notice something wrong that legitimately occurred during your possession, you provide them insurance information, and off you go.
3. They notice something wrong that did not occur during your possession, yet, because they noticed, you are now liable for anything and everything they say.
I'm firmly convinced that this is a very purposeful scheme. Somewhere some actuary calculated out the risk of what discovering damage really means, including an approximate cost of a recovery scenario, potential profits, etc. This is a money maker folks, no two ways about it. This essentially hedges their bet that, should you (like me) be covered on your own insurance policy and decline the pure profit that is their hard-counter-sell insurance policy, well, they're getting that money back and a hell of a lot more. The best part is that you sign your life away in terms of responsibility assuming, incorrectly, that there would be some amount of fairness associated with any disputes regarding damage. What really happens is that it's your word vs. theirs (they always win) and you're left holding the bag.
This past summer, for the first time in my life, I actually rented a car and had a problem. Actually two problems. Because I'm a smart consumer and didn't take the sucker bet that is daily insurance coverage, this gave Alamo carte blanche access to make my life hell. As an aside, I never rent from Alamo or Enterprise unless I absolutely have to. I'm a Hertz and Avis guy, but this deal happened to be part of a Costco travel bundle, which was a great deal all in. In addition to getting two lemons in ill repair, I was hit by a native Hawaiian who failed to turn around and see if anyone was behind him before throwing his F150 in reverse. He admitted full fault, yet we did not have cellular signal and could not obtain a police report. When I returned I spoke to Island Insurance who said they would get the full claim paid, and I forgot all about it.
Then the letters started arriving from Alamo. After two hopeless phone conversations, I directed them to my insurance agent who got to the bottom of what was going on. Island had requested additional documentation and, rather than supply it, Alamo felt they would just bill me instead and see who paid first, either me or Island Insurance. After all, I signed the contract stating I would be liable no matter what, right? Yeah, shady. Beyond shady. Note that I did not receive any of the following:
1. Accounting of the claim, detailing total damage estimate and all associated fees.
2. Details of payments received to date and explanation of any delta.
3. Reason explaining my responsibility for the balance, if any, and why it was not being pursued from the other party.
As of yesterday, I completed the correspondence with their Damage Recovery Unit, aka Collection agency that will make up random bills and threaten you with a real collection agency should you contest, question, or request additional information (read: proof) regarding the bill. I had received my final notice that they were moving me over to collections (without any justification whatsoever) and that I was no longer allowed to rent from them ever again (like I would). I promptly drafted a letter to the entire executive staff of Enterprise Holdings, the parent company of Alamo, Enterprise, and National. Rather than risk one letter getting buried, I sent 6 via post to the CEO, COO, Board Chair, and a selection of EVPs.
I then found an email address for their CEO Andrew Taylor (ataylor@erac.com) and sent a PDF copy. Not sure if it was received, but it didn't bounce either. Last, but certainly not least, I sent a PDF copy of the letter as my final notice to the Damage Recovery Specialist. Where he hadn't previously responded to emails, I got a response within 13 minutes stating he had decided to close the claim and waive all charges. When did this happen? He said just yesterday, but in reality I think it was within maybe 9 minutes of receiving my email.
The lesson, folks, is to pound executive staff with the realities of this horrific business. I'm copying my letter here for your enjoyment. Should any of these people choose to respond directly,I will most certainly post the updates.
Mr. Andrew Taylor
Chairman & CEO
Enterprise Holdings, Inc.
600 Corporate Park Drive
St. Louis, Missouri 63105
Dear Mr. Taylor:
I am writing to report to you regarding my recent experience with one of your companies, Alamo Rent A Car, and its associated Damage Recovery Unit.
In brief: I rented the car on 7/20/11 at the Kahului Airport location, confirmation number **.
48 hours after renting the vehicle, the battery died in a parking lot. I was forced to call AAA to get it jumped (AAA stated it had clearly had this problem before as the battery lead covers were already removed from a prior jump), and had to call Alamo to tow the car, as it was unsafe to drive.
24 hours later while stopped and in park at a one-way bridge on the west side of Maui, a white Ford F150 backed into me, damaging the front of the second rented vehicle. The owner admitted fault, provided his insurance information, and as we were hours from police assistance and without cellular phone signal, we could not obtain a police report. We returned to the rental agency, provided the responsible parties insurance details, and obtained a Chrysler Sebring. This vehicle's brakes were so poorly maintained I did not feel safe driving the vehicle; we returned it within 48 hours and completed our trip without a vehicle.
Two months later (September 15, 2011), I receive a call from a Recovery Specialist attempting to collect a fee. After repeated return phone calls, I finally reach a different agent who states that I owe an administrative fee but it is usually negotiable. I gave my correct address and said to send me proof in the bill, including why the other insurance company was not billed in full. Subsequent to this request, I am now getting bills from your Recovery Specialist, Randall ** (**) for the amount of $437.69. He has held exactly one conversation with my insurance agent and verbally stated the following:
"Island Insurance was billed for the full amount, the majority of which was remitted. Island Insurance had been unresponsive to his phone calls."
Upon contacting Island Insurance directly (phone call immediately returned), they have stated the following:
"Island Insurance is and has been willing to pay all charges, including administrative fees."
In order to remit the balance regarding loss of use of the vehicle, they requested written proof from Alamo.
Both my insurance agent and I have made repeated attempts to contact Randall to understand why the requested documentation was not provided to Island, and most importantly, why I was billed instead of Island when they have stated very clearly that they are willing to pay. The most recent communication I have received from Alamo has not been in response to phone calls from my agent or email communication from me, but rather, a more threatening letter stating that, as a final notice, if I do not remit I will be sent to collections and I am no longer eligible to rent from Alamo, Enterprise, or National Car Rental.
What I am asking you is as follows:
Why would your company bill in duplicate both me and an insurance company to see who would remit first?
Why have my repeated requests for proof and justification of the dollar amount been continually ignored?
Regarding my ineligibility to rent from any one of your companies, please do not worry, as a result of this experience I wouldn't provide one dollar of business to any corporation associated Enterprise Holdings.
Ultimately, my personal auto insurance policy would cover any damage that was justifiably my fault in any rental car I drive. Thus, why I declined Alamos daily insurance charge. I am in no way debating this. But surely you cannot contest the fact that by not conducting and providing documentation for initial vehicle inspections, you introduce an astounding amount of subjectivity to the rental process. Subsequently, by not readily providing proof and an accounting for any activity associated with a legitimate claim, you immediately associate the words scam and fraud with the entire damage recovery process.
You've lost a customer, Mr. Taylor, and I will not hesitate to caution any others regarding the business practices of Alamo Rent A Car. I hope this letter will, at a minimum, get someone's attention regarding this poor and unethical practice such that it can be repaired for future customers.