Final Exam

2015 INEFFECTIVE – 11.20 SUV

Steven Chan, a consultant from Oakland California, was surprised when he picked up his rental car from Budget Rental Car over Easter. He had requested a full-size car, but the rental agent told him he could upgrade to a Ford Excursion for an additional $25 a day. “She told me it was easy to drive but when I looked at it I realized it was – huge- like a tank.”

On his trip Mr. Chan managed to scratch the paint and damage the rear-door step. He wasn’t worried because he thought he was covered since he had used his American Express card. He knew that the company offered back-up rental insurance coverage. But he found out that the Amex coverage did NOT include large SUV’s. “I just assumed they’d cover it.” He wrote to BUDGET to complain about not being warned that certain credit cards may not cover damage to large SUV’s or luxury cars.

Budget agents always encourage renters to sign up for Budget’s own “risk product.” They don’t feel it’s their responsibility to study and know the policies of customers’ insurance carriers and explain what may not be covered. Moreover, they try and move their customers into the rentals as quickly as possible and avoid lengthy discussions about insurance. Customers who do not purchase coverage are at risk.

Mr. Chan does not file claim against Budget but he’s upset about being pitched to take the larger SUV which he really did not want.

YOUR TASK: As a member of the Communication Staff at Budget, respond to Mr. Chan’s complaint. Budget is NOT going to pay for the SUV repairs but it does want to salvage the goodwill and future business. Offer him a coupon for a FREE Two-Day rental or full-size sedan.

Write to Steven Chan, 5300 Park Ridge, Apt 4A, Oakland, CA 93578