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The Week


HERTZ AGREES TO PAY $168 MILLION TO SETTLE FALSE THEFT CLAIMS

Justin Klawans, Staff writer
December 5, 2022·1 min read
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A view of a Hertz Rent-a-Car parking lot. Matthew Staver/Bloomberg via Getty
Images

Rental car giant Hertz Global Holdings announced Monday it had agreed to pay
$168 million to settle claims that it falsely reported its customers for theft
after they didn't return their vehicles on time.

In a statement, Hertz said it would settle 364 outstanding claims related to the
alleged erroneous theft reports, or about 95 percent.

CBS News first reported this past February that the rental car company was
facing hundreds of lawsuits from customers who claimed to have been falsely
arrested for auto theft after Hertz reported they stole their rental car.
However, a large portion of the reports made by Hertz were allegedly false, and
reportedly even led to some customers receiving arrest warrants in states they
had never visited.



Bloomberg reported that many of these customers were detained by police — often
at gunpoint — and ended up spending time in jail.

"As I have said since joining Hertz earlier this year, my intention is to lead a
company that puts the customer first. In resolving these claims, we are holding
ourselves to that objective," Hertz CEO Stephen Scherr said in the statement.
"While we will not always be perfect, the professionals at Hertz will continue
to work every day to provide best-in-class service."

Scherr said earlier this year that the false reports were based on a glitch in
the company's system, according to The Associated Press, and that Hertz was
working to identify and fix it.

The company has said that it normally investigates overdue cars for about 63
days before involving law enforcement.

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