When you rent a car, there are some standard forms to fill out. You write down your name and other details, and you mark off any pre-existing damage on the vehicle so you don’t have to pay for it later. Now, it turns out Hertz is trying to do that job with AI instead, and one customer says it’s left them out of pocket with no recourse.
Hertz is a big name in the rental car business, and it’s also been the subject of some controversy of late. Most notably, the company end up paying out millions to customers allegedly arrested over rental cars they’d legitimately paid for. That case saw the brand’s name dragged through the mud as 364 plaintiffs sued the company, many of whom say they were dragged away by police and wound up in jail because of the company’s alleged mistakes.
The latest tale of woe from Hertz comes to us from Adam Foley. He took to LinkedIn to rail against the company’s AI tools, which he says charged him for damage he shouldn’t have been responsible for.
“Upon picking up the car and exiting the facility, high-powered cameras took a 360 picture of the car. Upon returning the car, a similar process took place,” Foley explained on LinkedIn. The problem cropped up a few hours after the return. “Two hours later, I received a notification that damages were found which highlighted the areas, one small ding on the roof—but possibly just dirt or anything else that could throw off a camera—and one similar artifact on the hood,” he explained. “Nothing any human would detect or reasonably consider ‘damages.'”
Unfortunately for Foley, Hertz’s AI-powered system was not forgiving, per his recounting. “The automated messaged said that I owed $190, but if I paid today, it would be only $125,” he posted. “This fee is literally the price of the entire four-day rental minus $5.” He wished to protest the issue, but said he found roadblocks in his path. “To protest this fee, it is an automated AI chat experience that does not break to go to a human interaction no matter what choices you make,” he shared. “You are only given explanations for why you still owe $190.”
His complaint is simple—that customers are being slugged with damage charges automatically, with no real possibility of appeal. “So Hertz new policy I guess is as long as a car does not appear to be brand new and spotless to AI cameras, the customer is going to pay,” he concluded. “Enjoy the one-time cash grab with customers. I will never rent at Hertz while this policy continues.”
Foley’s complaint is not unique. Last month, The Drive reported on the case of a reader named Patrick. They reported being charged $440 for a scuff on a wheel. Per the report, just $250 of this figure was earmarked for repairs, with Hertz also charging an exorbitant $125 processing fee with a further $65 administrative fee tacked on.
The scanners implemented by Hertz were developed by a company called UVeye. They use bright lights and high resolution cameras to image the vehicle as it leaves the lot, and again when it’s returned to the lot by the customer. It then uses AI technology to look for differences in the vehicle’s condition, and prepares a damage report in turn. If damage is detected, the customer is automatically charged. The intended benefit of the system was to automate and simplify processes for customers, avoiding the need to mark off forms or take lots of photos manually when checking out and returning a vehicle.
With complaints piling up, last month, legal firm Shubjohns & Holbrook launched an investigation into Hertz, and the use of its AI-powered scanner created by UVeye. The company is seeking submissions from customers who have been charged for damages by Hertz under this new inspection regime. “This new AI-powered scanner allegedly detects minor scuffs or blemishes on the vehicle, charging the consumer for the damages, and leaves little room for consumers to dispute the potentially-bogus charges,” states the firm’s website. The firm directly cites the case reported by The Drive above. It also noted Hertz’s attempts to push customers by offering discounts on a time limit if they comply with paying for supposed damages.
Uproar is easy to find on social media, with customers sharing screenshots of tiny blemishes or supposed dents that have landed them with serious damage charges. Speaking to the Daily Mail on the matter, a Hertz spokesperson defended its new scanners. “Over 97 percent of cars scanned with this technology have not detected any billable damage, proving a vast majority of rentals are incident-free,” a spokesperson told the outlet. The company also confirmed it used a supposed 1-inch standard for dents when deciding whether customers should be charged for damage—something which seems to be in contradiction of images shared by aggrieved customers.
The Autopian contacted Hertz for comment on Foley’s case, and received the following statement:
Our damage policy has not changed and is consistent regardless of how the vehicle is inspected. We work hard to maintain the quality of our vehicles for all customers, and as is standard across the industry, renters are responsible for any damage that occurs during their rental period.
Will no longer use Hertz.
byu/professor_pimpcain inHertzRentals
There is already plenty of evidence out there that this system is causing stress for individual customers. It’s easy to imagine the headaches this would cause for those renting vehicles for work—few businesses would be happy to hear their employees had apparently damaged a rental vehicle while on the job.
Ultimately, it’s yet more bad press for Hertz. It’s also another example of an automated AI-powered system causing headaches for people when it fails to recognize the complexities of the real world. The alleged lack of any way for customers to reach a human with their appeals only adds insult to injury for those affected. More on this story as we have it.
Image credits: UVeye, Hertz, via LinkedIn Screenshot
That’s not damage on the hood that’s a clearcoat imperfection! Like, seriously! We’ve all seen that even on brand new cars, where certain contours just have the clearcoat laid on a little thin and it causes strange refractions.
Also this is bullshit. The intended benefit was removal of human nuance and the possibility of appeal. The financial transactions are automated and happen faster than any human could intervene, and by removing the human who would approve those transactions and making it automatic, you can yoink the money and hide in your star fort before your mark even realizes.
Agreed, best case some tech-ignorant CEO was dazzled by a sales team selling these systems. Worst case it’s just a cash grab that doesn’t involve forcing the staff to shake down the customers.
Pure hell. If you want to challenge it you are going to sink a day into it before you are done. I already refused to rent from Hertz based on their handling of the arrests of paying renters. This is an additional reason and cements my decision to never go there. I recently rented from Enterprise, and did the standard walk around despite the employee saying “it’s all documented in the computer already,” which, of course, several blemishes were not. Their blemish policy seemed pretty lenient which was a welcome relief.
I don’t rent from Hertz, either, after they waited a whole week to check in a car I’d returned after hours, hit me with an $850 bill, and refused to refund any of it.
I also always take detailed pictures of any loaner car or rental car I receive, lest someone try to claim pre-existing damage on my dime. This also saved my bacon the time I rented a ~2012 Impala way back when and found a bong with weed in it, at a time and place in which both were very illegal. Clearly, the car hadn’t been cleaned adequately, or an employee had left it.
Incidentally, that was Hertz, too.
They also once gave me a Chevrolet Cruze with the tires inflated to, I kid you not, 74 PSI.
Yeah, eff Hertz.
I haven’t rented from a airport in a long time but I always use Enterprise local because that’s all that’s around my home. They have been nothing but great, if they are busy it can take a while but it’s usually a super fast check in and check out procedure.
Sorry but once I’ve handed back the keys and have my receipt the rental is finished. I have no way of know who caused damage once the vehicle is no long in my possession.
purchase the machine vision scanners and assessment and billing system at great costlay off the staff who would have done the inspections, leaving only a small complement of counter-only people, who we can pay lessamortize the cost of the machines into extra fees that are higher than the damage assessment itself, so the machines pay for themselves…Profit!
I have long had the practice of doing a walkaround video of a car before and after I rent it to avoid disputes like this or have proof if I do, but ultimately this will just make me avoid Hertz.
The problem is that now Hertz has their own 360 video of the car at the start of the rental.
Oh I realize that, just saying that with a before and after video I at least have some chance of disputing a damage claim if I think it’s bogus.
But again, a moot point because I’ll just avoid Hertz.
Amazing how the letter they get has a lot of hallmarks of scams that people are warned about. E.G. The threat of legal action and the demand for immediate payment to secure the “discount”.
Yep, it’s a shakedown by any other name.
Yeah I’ve already been avoiding Hertz for years, more evidence of the wisdom in continuing to do so.
Since rental companies love to charge you for small issues after the car was returned and having evidence about the damage was there before, Amex offers an extra insurance (Premium Coverage on their terms) for about $20 every time you rent a car and its not just only for the US, its worldwide with some exceptions. You have to enroll for the automatic deduction on your credit card.
This is the way I keep declining every type of overpriced extra coverage from rental companies and just sticking with Amex to handle this in case something happens. Example, on my latest trip to Mexico, a compact car for a week was $150 plus the $20, instead of $400 if I selected their coverage.
I haven’t checked the terms and conditions on my CCs recently so maybe it’s changed, but they all (I don’t have Amex) provide(d) rental damage protection for about $0.00 if you use that CC to pay for the rental (worldwide). No need to enroll into anything.
So in addition to your suggestion, people should check their with their CC T&C for automatic rental car coverage.
They are generally secondary coverage. Primary is your auto insurance. That benefit is more for paid cards.
Correct, plus the standard credit card coverage is only for US and Canada. I dont mind paying $20 just to have peace of mind that I have a backup plan in case shit hits the fan.
AmEx premium coverage is primary. As is coverage from Chase Sapphire cards. Those are the only two I have had. Internet says Wells Fargo Bilt card and CapOne VentureX also have primary coverage.
Again, cards that generally have an annual fee. Or have another way of generating lots of revenue. Sometimes that fee can be cheaper than the alternative.
Some credit union CC offer rental car coverage as a free perk.
“I see bird poop. Pay Me!”
Let’s not forget to blame Elon for this.
Remember when he dropped his prices and Hertz lost millions on their used Teslas overnight? They have to make up the difference somehow.
you receive today’s gold medal in mental gymnastics
I feel like I can blame almost anything on Musk at this point.
Like the dad in My Big Fat Greek Wedding who could trace anything back to its Greek origins.
I hate that movie with the passion of a thousand burning suns.
Way back when flight entertainment meant everyone watching the same thing on a big screen, this dreadful piece of celluloid was their choice.
A few years later the PIIGS financial crisis hit. I admit I wasn’t feeling too sympathetic towards the “G” part because of this movie.
Would you believe they put that on at my high school?
Why people still hiring vehicles from Hertz after the rash of bad publicity in the past is beyond me…
A lot of business travelers don’t have a choice. The company will pre-negotiate rental rates with a rental company, which is very often Hertz.
Since those rates are contracts, Hertz can’t raise them. To make more money they have to squeeze it from somewhere else.
“A lot of business travelers don’t have a choice.”
If my company pre-arranged a rental for me, I’d push back and insist on any other company as I don’t want to risk getting falsely arrested.
And then I’d link all of my own company’s documentation on ‘business ethics’ which also affects who we do business with and say “Hertz does not meet our corporate ethics standards and I’ll raise the issue with HR and even hire an employment lawyer if I have to”
Hertz may make at least one phone call to their corporate contact before reporting a business-rented car stolen. I’m not betting on it, but I would think they’d treat their corporate customers slightly better than retail customers. (I admit that’s a big assumption with Hertz.)
To be honest, I wouldn’t even be sweating the damages. It’s going on the company credit card. I have expensed speeding tickets without so much as a question from my boss.
Yeah but I view the money aspect as secondary. It’s the principle of the matter.
And any company with any sense of ethics shouldn’t be doing business with Hertz either.
I am speaking of domestic business travelers employed by US corporations.
Ethics, at best, is a wash.
“Ethics, at best, is a wash.”
Not for me.
The ethics of all corporations are the same – maximize profits / shareholder value.
Any other policies are subject to the main directive. Wherever there is a conflict, profit wins.
“The ethics of all corporations are the same – maximize profits / shareholder value.”
I can tell you from years of first-hand observation that all corporations are NOT the same.
When there is a conflict between profits and ethics, they will take the profits. Always. It’s not even their decision to make. Otherwise they can be sued by their shareholders.
My grandma solved that problem by renting from Hertz in New Zealand, proceeding to drive on the wrong side of the road in a RHD, having a minor fender bender resulting from driving the wrong way, and then being banned from renting from them again.
Funny. I always quipped that there is a lot wrong with America, but the car rental process was far superior to anywhere else.
I often rent cars in Europe and they are absolutely asinine about any sign of damage, however minuscule and since (rental) cars are sometimes not 100% perfect chances are you may be on the hook for something you did not consider damage that was there before. I always feel like they gonna nab me for a hairline blemish. I was once pestered for damage to the underside of the car’s side skirt which based on where and how I drove, no way it was me. Did not even occur to me to check there during pick up, who does that? CC took care of it, but still.
US of A? You take the car, drop it off quick and easy and so long as you did not put a gauge in the door, you’re good. I’ve rented a lot from the usual suspects over the years, never, ever had an issue.
I guess the easy street is over and Hertz at al found a new racket erm.. revenue stream.
I’m not against paying for damages but 1) Minimal wear and tear is what you pay your rental fee for, 2) Those charges appear to be way excessive (and they’re not actually going to fix anything anyhow) and 3) The complaint process, unsurprisingly appears to be giant pile of automated BS.
My experience in Europe was 180 degrees from yours. Picked it up in Toulouse and returned it near cognac and when I say returned it I literally left it out front on the street and handed the keys to the person in the shop and left. Did however get a ticket in the mail for speeding from France. Lol. Third time that has occurred
Avis Germany tried to get me for €1,200 on a 2019 BMW 750d (that’s a quad-turbo diesel, BTW) I rented while in Bavaria because of curbed wheel damage. Fair enough, I did do that. But I’d also paid for the damage waiver…which, according to them, did not cover the class of car I’d rented. To which, my questions were:
My credit card company agreed and refunded me that portion of the charge, but I was shocked.
Not surprised.
I had a rental car desk try really hard to upgrade me from manual to auto for $20. I refused three times. They then handed me the keys to my car – an auto, because they didn’t have any manuals on the lot. They just wanted to gouge me for the sake of it.
I rented from Sixt in Germany once- one way rental in a Mercedes C-Class. Had to return it at a train station in Hamburg, which was under construction. Instructions were to basically leave the car in a parking garage a few blocks away and put the key in a box. I stressed for months afterwards thinking I was going to get hit with some crazy damage charge because nobody was there to check the car in.
The “Pay right now and we’ll charge less” gives the game away for me. This is a shakedown. Hertz is a garbage company run by scumbags.
A relative of mine worked in one of Hertz corporate offices, in Accounts Payable. Their job was essentially to assuage or stall vendors whose contracts they had violated by not paying according to the terms. If a vendor was Net 30, Hertz would just pay Net 90 or Net 180, or whenever they felt like it. And some of these vendors relied entirely on Hertz for business, so there was nothing they could do to enforce the terms of the contract.
I’m sure a lot of large companies do stuff like that, but Hertz is the one I can confidently say that I know does or did it.
I once fought the accounts payable department at a company I worked for over trying to pay a lawn guy on net 90. Dude was cutting raw land that we owned so we wouldn’t get fined by the city, and if there ever was an issue and I had to call him to get out there ASAP, he’d get it done in under 24 hours. Its like we’re not gonna make or break our month on his $400 can we just pay the guy so he keeps giving us good service?
Extended aftermarket warranty companies are so notoriously slow to pay that many auto shops refuse to do business with them. For a small or independent shop a delay of 6 months can be a major problem. For some reason Ice-T doesn’t mention that in the TV ads.
I did just buy a pricey warranty for my latest European car, but I specially went with the one the local dealer recommended, and I bought it from them, AND I have a friend who works there as a service advisor and who says they’re never an issue.
I wouldn’t use anybody that advertised on TV; that’s for sure. A lot of those extended warranties also have clauses that they’ll only pay $X rate, and the customer is on the hook for the rest. Meanwhile, the one I got just listed what it *doesn’t* cover (meaning it’s an exclusionary policy, which is what you want), and some basic legal boilerplate.
The “urgent call to action” is like the #1 red flag on any guide to spotting scams, and appears that’s holding true in this case also.
Big companies like Hertz with lawyers on staff who get paid whether they’re working on a case or not have the resources to make lawsuits over $200 charges so costly they’re unfeasible and they’ll happily capitalize.
This is certainly a shakedown. We all always have lots of extra time when we arrive at the airport to dispute a crap AI charge to our rental.
Dispute charge or miss my flight?
I think they also count on you not getting this email until you’re already on the plane and can’t try to fight it in person.
Between arresting their customers and now bogus AI driven damage fees, Hertz is really trying to go bankrupt.
I’ll do my part by not renting from Hertz. We need this policy to fail badly so the other companies don’t roll out their own versions of it. Boycott them, and if you have to rent from them because of a company contract or something make returning the car a slow and tedious experience. I’m not handing those keys back until I have gone over the car with my phone and taken pictures of every body panel from multiple angles and all 4 wheels and tires.
Bankrupt again! There’s a reason it’s pronounced “Hurts.”
New Yorks biggest employer is NYS itself. The preferred rental company by the state? Hertz. Lets see what happens.
That’s going to be good. Albany watches government employees like hawks.
I also learned the hard way a couple years ago to NOT voluntarily offer up any possible safety issues. Long story short, but I found a sidewall bubble in my UK rental (Europcar, who suck but maybe not as much as Hertz) and upon returning it, I notified the inspector and stated that I didn’t think it happened on my watch. In fact, I tried the whole “I can’t believe this missed inspection” angle of righteous indignation.
They passed me and sent me on my way, which is when I learned that Heathrow is the only first-world travel experience worse than rental cars, but I digress.
2 months later I get a bill for $200. And upon digging in, I also see they charged me for roadside assistance that I was unaware of AND never used (or agreed to). Ultimately, my credit card reimbursed me for the damages, but the great irony is that the roadside assistance — which I didn’t know I had paid for — was also about $200 and would have covered the tire damage if I had called it in and taken the blame for. What a world.
Heathrow is the worst? Have you ever been to Stansted?
I don’t rent cars a whole lot but I know where I won’t be going next time I do.
Would be an awful shame if someone “accidentally” rams their rental into the scanner.
Make sure you get the optional insurance first!
I will use this insurance next time.
Am I close to the curb? SCRAAAAPE. There we go.
Far enough into a parking spot? BAM. Parked!
Dont want to scratch the car im parked next to, lets drag my bags across the rental.
And if enough of these coincidences happen around the country, we can only hope in ends in a fight to the death between Hertz and the insurance company. I’m rooting for no survivors.
Can’t wait to see what happens when someone brings their car in while it’s raining, and all the water droplets on every surface is flagged as a dent.
I don’t even know if this could be considered AI or just a visual check program. An AI should have some sort of parameters that allows a pass or fail. This is just a spot the difference program regardless of any conditions.
It’s not. It’s just machine vision and a marketing department hell bent on using the latest buzzwords.
There is no such thing as “software” or even basic circuit logic anymore, it’s all “AI”.
I have a cheapo rice cooker, the old fashioned kind were you just click the lever down and it pops up when it’s done (via a property that magnets get weaker as they get hot, it’s actually a really clever design). But it’s incredibly simple, there are no integrated circuits whatsoever. A magnet, a switch, a heating element. That’s it. The other day at the store I saw the exact same one I have….a plain old school mechanical one with one lever on the front….with the box proudly advertising “AI” rice cooking that automatically adjusts to how much rice or water you add.
Wow. That’s next level.
I got a new microwave this year, and you can put a frozen entree in there, press a couple of buttons to let it know what you’re cooking (frozen entree is one of about 15 options, you don’t have to let it know the weight,) and when it says it’s done, it’s cooked perfectly.
To be fair, the Japanese ‘Neuro-Fuzzy’ branded ones really are clever. They take a lot longer to cook the rice, but do so more gently so the grains at the bottom aren’t scorched or sticky. Is it worth the extra $100? Not to me, but still I admire the dedication to perfecting rice cooking.
What do you want to bet that Hertz’s reply was written by AI as well?
Chat GPT: “Write me a boilerplate response to address outrage regarding our damage policy.”
Pretty much every time you hear about some shady, ignorant, crappy, foolish or just generally scuzzy issue with a car rental agency, it’s virtually always Hertz. I don’t know why people still use this agency.
I avoid it whenever possible, but when I travel for work, which is 99% of the time I rent cars, I am obligated to go for the cheapest car available, regardless of what company is offering the deal so I have ended up with them a couple times, luckily without any issues like this, but even just the rental counter is always a miserable experience.
You need to dig up some discount codes for one of the other brands to help show your finance group that you’re getting the best price and can selectively avoid Hertz
Won’t work at my employer. We are required to book through the company travel booking site and only Hertz is available.
(They rebid it every 2 years – which is January so maybe we will ditch Hertz and go back to National or Avis)
Oof.
We’ve got similar, but shows leniency if we “need” to book it outside of the corporate system.
We can only rent outside of Hertz if they have no cars available – and then we have to call corporate travel and they book from another company – but only after confirming no cars are available from Hertz.
I can’t really complain much though. They let us choose what airline we want to fly and what hotel to say in – within reason for cost. That allows us to pick a company and earn status
If you know who is in charge of making that decision, let them know about this stuff. Those ticky-tack damage charges are going to either erase any cost savings, piss off everyone who travels, or both.
The flip side of that is why would an employee care? The charge goes on the company card and I submit it with my expense report. It costs a couple of minutes extra time.
The only time I would actually care is when I rent a car for personal use at the company rate ($265 a week)
I mentioned that because I figured damage charges may or may not be reimbursable, depending on company policy.
Next time, just opt for the pat-down.