Europcar investigated by SFO over 'fraudulent' repair costs
One of Europe's largest car rental companies, Europcar, is to be investigated by the Serious Fraud Office (SFO) following reports that more than 500,000 customers may have paid for repairs inflated by up to 300%, with overcharges potentially totalling as much as £30m ($39m). If the company is found guilty, thousands of customers may be able to seek compensation and Europcar could be fined 10% of its annual turnover. British travellers face an average excess of at least £1,000 on a holiday hire car, with some firms charging more than £2,000.
The car hire industry was thrown deeper into crisis last night after it was revealed a major firm was facing an investigation over 'fraudulent' repair costs.

Europcar, one Europe's biggest rental companies, said customers may have been overcharged by as much as £30 million.

The Serious Fraud Office is understood to be planning a criminal inquiry following reports that more than 500,000 customers may have paid for repairs inflated by up to 300 per cent.

Europcar is facing a criminal probe into claims that it overcharged customers for repairs with bills inflated up to 300 per cent

It comes on the back of a Daily Mail investigation which found that customers were being forced to pay up to £2,200 in insurance excess if they damage a hire car abroad.

The Daily Telegraph reported last night that the Europcar customers may have paid over the odds for repairs over the course of a decade.

The National Body Repair Association said the problem was widespread and warned of 'an increasing trend towards large corporates pressurising small firms to work with opaque practices and poor commercial terms'.

Alex Neill, from Which?, added: 'If Europcar is found to have inflated costs for repairs, people will be outraged.

The company says customers may have been overcharged a total of £30million over the course of a decade, with industry watchdogs warning the practice is 'widespread' (file)

'There should be an immediate investigation to ensure others aren't doing this and customers who have been left out of pocket are compensated without delay.'

A spokesman for Europcar said 'the implications of the investigation will be somewhere in the region of £30million'.

Thousands of customers could seek compensation and the company could be fined 10 per cent of its annual turnover if found guilty.

The Mail revealed last week that British travellers face an average excess of more than £1,000 on a holiday hire car, with some firms charging more than £2,000.

When a hire car is damaged, the driver must usually pay the first few hundred pounds of repairs – known as the excess – before the rest is covered by their standard insurance.

But experts said excess charges were spiralling 'out of control' as car rental desks use the high prices to persuade drivers to buy additional 'excess waiver' cover.