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Keeping Passport as Security Deposit is Illegal: Lawyer
DUBAI - K. K. Sarachandra Bose, a lawyer with Dar Al-Adalah Advocates and Legal Consultant, said car rental companies in the UAE follow two methods: keeping passports as a security deposit or credit card-based payment. Most countries follow the credit card-based rent-a-car policy.
“Collecting passports as deposits, in my opinion, is dangerous. What will happen to the passport of a person when a rent-a-car company is closed by a court order or voluntarily for any reason? It may take a considerable time to get the passport released even if the person is not a defaulter,” he said.
Keeping another person’s passport is against law, as it is the personal property. It should not be held by anyone other than a competent authority such as judiciary, prosecution etc. on valid legal grounds and against proper receipt issued.
Bose said car rental issues are covered by both the civil and penal codes, and there is no need for further laws or explanatory articles to be issued.
In the UAE, car rental defaulters are penalised as per the provisions of Article (395) of the UAE Penal Code No. 3/1987 which says: “Whoever hires a car for rent and unjustifiably abstains from payment what he owes or escapes without payment shall be punished by detention for a period not exceeding six months, or a fine not exceeding Dh5,000, or both the penalties”, he explained.
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