Can you take a rental company in another EU country to court in your home country?

The rental company in Portugal kept 800 euros of your deposit, your objection got nowhere, and a court case in Lisbon sounds impossible. EU rules often let a consumer sue a company from another EU country in the courts of their own country, and the company can generally only sue you there too. Whether that works for your rental depends on how the company does business with people from your country. This article explains the rules, the limits, and what it means in practice.

The rule: consumers can sue at home

The EU's main rulebook for court jurisdiction in civil cases is Regulation (EU) No 1215/2012, known as Brussels I bis. It has a special section for consumer contracts, in Articles 17 to 19.

Article 18 gives a consumer two choices. You can sue the company in the courts of the country where it is based, or in the courts of the place where you live. The company, on the other hand, can only bring proceedings against you in the courts of the country where you live.

These rules only apply if three conditions in Article 17 are met:

1. You made the contract as a consumer, for a purpose outside your trade or profession. A holiday rental qualifies; a business trip rental may not.
2. The company pursues commercial activities in your country, or by any means directs such activities to your country.
3. The contract falls within the scope of those activities.

What does ‘directing activities’ mean?

This is the condition that usually decides a car rental case. The Court of Justice of the EU has said that the mere fact that a company's website can be accessed from your country is not enough. In its joined Pammer and Hotel Alpenhof cases (C-585/08 and C-144/09, 7 December 2010), it listed signs that a business targets other countries, such as:

• a website in a language or currency other than the one normally used in the company's own country, with the option to book in that language;
• telephone numbers with an international code;
• a top-level domain other than the company's own country, such as .com or .eu;
• paid search advertising aimed at consumers in other countries;
• mentions of an international clientele, or directions for reaching the business from other countries.

In the Mühlleitner case (C-190/11, 6 September 2012), the Court added that the contract does not have to be concluded at a distance. Even if you sign the rental agreement at the desk abroad, you can still sue at home when the company directed its activities to your country and the contract falls within them.

How this plays out for car rental

When you booked through a broker or comparison site, look at who your contract is with. Our article on booking through a broker explains the roles.

Article 17 excludes most contracts of transport from the consumer section, except package deals that combine travel and accommodation. Renting a car you drive yourself is not the same as being carried somewhere, but a company may still raise this point, so take advice before you rely on it.

A clause in the rental terms does not usually stop you

Many rental terms name a court in the company's country. Article 19 of Brussels I bis limits such clauses in consumer contracts. A different court can only be agreed after the dispute has arisen, or in a way that gives you extra options, or in a narrow case where both parties lived in the same country when the contract was made. A standard clause that points only to the company's home court generally cannot take away your right under Article 18. Read more about unfair terms in car rental.

Which law applies?

Jurisdiction decides which court hears the case. It does not decide which country's law the court applies. A court in your country may have to apply the law of the country where you rented, for example on how long the company has to make its claim. Your European Consumer Centre can help you understand this before you start.

1Try the out-of-court routes first

Court is the last step. Object in writing first, then ask your home ECC for help, and for participating brands consider the European Car Rental Conciliation Service. Many disputes end there. Our letter templates help with the first steps.

2Check whether your home court has jurisdiction

Use the three conditions above. Collect evidence that the company targets your country. If you are unsure, ask your ECC or a legal adviser.

3Choose the procedure

For claims up to 5,000 euros, the European Small Claims Procedure is the simplest option. ECC-Net notes that it allows you to pursue a cross-border claim through the local court in your country of residence. ECC Netherlands' step-by-step guide explains the forms. Read our guide to the European Small Claims Procedure. For larger claims, your national court procedure applies.

4Enforce the judgment

Under Brussels I bis, a judgment that is enforceable in one EU country is enforceable in the other EU countries without a separate declaration. In practice, you still need to follow the enforcement procedure in the company's country if it does not pay voluntarily.

If the company sues you

The same rules protect you. If the conditions of Article 17 are met, a rental company or its debt collector can generally only bring court proceedings against you in your own country. A letter that threatens a court case abroad does not change that. See our article on debt collectors chasing a damage claim.