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
Counterpoint. Just buy the damned damage waiver and call it a day. I have literally returned a Hertz rental on a flatbed, and all they had to say was “Are you OK, Mr. Rhodes?”.
The fastest, toughest car on the planet is a rented car with a damage waiver in place.
Only if it’s an Altima.
Those things might as well have deflector shields when they are rented with the damage waiver. Completely indestructible. 🙂
Hertz will now join Alamo on my do not use list.
What’s wrong with Alamo? I’ve had nothing but decent experiences with them. Fast check-in, good cars, and they care fuck all when I bring them back.
I was a big Alamo stan for years because they would never give me the hard sell on insurance or accessories, but last year I flew into ATL a week or so after a hurricane and when I walked up to the counter it was just a manager saying, “hey we sent all of our inventory to Florida, get bent”. No I’m sorry, no assistance finding a new vehicle, zero notification even though they had my contact info from the reservation.
And if you’ve ever been to ATL you know how much of a massive pain that hike to the rental center is. Enterprise saved the day with a Honda Ridgeline that was even cheaper than the reserved economy car.
I rarely rent cars. This is enough for me to never choose Hertz.
NONE of them are really any different, and now that Hertz is doing this, they ALL are going to do it, because it’s a nice money earner. And I will bet you that how carefully they scrutinize the car will be inversely proportional to your frequent renter status.
Maybe, but the bad press Hertz is getting over this may cause some of them to think twice, at least for now.
Doubtful. There is money to be made. The cheaper rental agencies already go over the car with a fine-tooth comb anyway via human eyeball, and continental Europe has been notorious for being super picky for decades. I stopped using Dollar because even WITH the damage waiver, they wanted me to hang around at return time while they scrutinized the car.
If Hertz is so intent on maintaining quality of vehicles for customers, why don’t they fix minor damage that this system is designed to detect?
I bought a former rental car from Hertz that had two visible door dings as well as curb scuffs on one of the wheels. The damage was minor, but obvious. As this car was in their rental fleet until the day I bought it (I actually rented it before buying), Hertz clearly doesn’t have major qualms about renting cars out with minor damage. It is hard to believe Hertz is using AI scanners to improve vehicle quality when they don’t fix damage visible to the human eye. Further, I doubt my car rented for any less than a flawless Model 3, so the damage didn’t affect their bottom line.
This is a shameless and transparent money grab by Hertz. The obvious solution is to avoid Hertz like the plague.
How many customers were charged for the same dings?
Most of them, probably. Get the damage waiver.
The purpose of a system is what it does.
So, what it does, similarly to the previous Hertz boondoggle of railroading its customers, is to raise money.
My wife spent a week on the phone with Hertz after they wanted to charge her with theft, because the Hertz automated return system had lost track of the car she returned.
Never, ever, rent from Hertz.
There was a time when they maybe weren’t as terrible…about 37 years ago. We rented from Hertz for our honeymoon in Ireland. Me at 25 driving on the opposite side of impossibly narrow roads. At one point I clipped mirrors with a parked car. No damage to the other car, but cracked the mirror on our little Rover (a rebadged Civic). When we turned it in at the Dublin airport, I pointed out the damage to the Hertz guy, who just chuckled and waved us through. They probably had a closet full of replacement mirrors ready to go.
I was waiting for this to be a Matthew Broderick story.
I rented from Hertz once, it was probably 3 or 4 years ago. I rented a model 3. After I returned it (with slightly more % charge than I got it with), I got a bill for $30ish worth of Supercharging (fine, expected), and then a $150 “refueling charge”, claiming that 10 gallons of gas @ $15/gallon was needed. I thought I returned it right at 90%, so wondered if there was some clerical issue that 90%+ 10 gallons= Full? Idk. Or it was just a scam, probably just as likely.
I quickly discovered that Hertz has quite possibly the worst customer service phone tree hell ever, gave up, and just disputed the charge to Amex, sending them the receipt charging me for 10 gallons of gas for a Tesla. A few days later Amex responded and said the dispute had been closed in my favor as “merchant failed to respond”, and the took the entire charge off (including the supercharging I actually did use). So Hertz’s shenanigans not only didn’t work, but actually cost them $30, which I gladly accepted as compensation for wasting an hour on the phone and having to deal with this nonsense in the first place. Never heard a peep from Hertz about it.
Rather ironic that the customer complaining lists his occupation as “AI & Automation Strategist.”
“What do we say to the God of AI? Not today”
Boycott companies full of AI shite
These are going to be as popular with the public as speed cameras. The difference is, I can choose not to use Hertz.
We have loads of speed cameras, so I choose not to speed.
This is a great idea executed poorly. That ding above the wheel well is basically not noticable to 99% of the population.
I’ll take the insurance…because I’m gonna beat the hell out of this vehicle.
Give it some damage the AI can’t miss to get your money’s worth.
“The holding…that’s the most important part…anyone can take them!”
IDK if it’s possible at Hertz (I’ve never used them) with this system, but whenever I rent a car I look very closely before I sign anything and point out every single flaw I find. When I return it, I always ask for a paper receipt that states that the vehicle was returned with no additional damage. It’s a hassle and takes extra time, but I’ve never been charged for damage.
What bothers me here is that of the flaws shown in this article I think the majority would be very easily missed.
I have never once rented a car that was in perfect condition. In fact, generally they have door dings and scratches all over them even if they have like 3000 miles on them. Based on this info with their AI shenanigans and endless purgatory of ai chatbots, plus the fact that they’ve also caused irreparable harm to people’s criminal records based on spurious charges of “theft” – and that they went bankrupt and fucked the entire used car industry a few years ago – I’m NEVER EVER renting from Hertz. The last time I did it was a shit show anyway – in Honolulu they basically forced me to rent the cheapest ass car they had because it was literally the only one that showed up that day even though I had reserved a car from a much higher class. Cue Seinfeld rental counter rant…
Screw Hertz. They were uniformly terrible when I was forced to use them by corporate rules. I’ve used National for years and found them reasonable and helpful.
Did a California trip in the spring and debated renting a car. Did some quick math on rental rates and parking fees and decided to just Uber everything. I stand by that decision and we definitely came out ahead without even considering the hassle of dealing with rental place.
Ironic that the AI Strategist got hit by this. Maybe that will teach him for trying to create Terminators.
I stopped renting with Hertz in 2019 after a few bad service experiences (no cars available for Presidents Circle members, but plenty on the standard aisles and refused to let me take what was there) and every article I’ve seen since confirms it was the right decision to make.
Well somebody had to pay for the fancy scanners and “AI”.
Pretty sure image comparison tech has been around a good 30 years, and doesn’t sound like the chatbot they use has much “I” but it’s the lower case i of modern times(iPhone, iMiev,).
Waiting on when I can order my blue blocker/tactical/4K sunglasses with AI soon.
Ugh. This validates my typical desire to either road trip to travel destinations, or to go places where a car is unnecessary.
It seems like whenever I read about a rental company being terrible, it’s Hertz. I’m sure other rental providers will eventually get on board with this idea, though. Automated extra charges via AI would be an easy pitch to make at most companies.
A couple of years ago, I did a one-way Hertz rental to pick up a car that was three hours away. That car broke down just a short distance from where I bought it (because it was a V12 Jaguar and of course it did)…so I stayed overnight with a local friend and then had it towed home in the morning. To get myself home, I booked another one-way Hertz rental, which was for 24 hours and would have had me turning it in the following morning.
I ended up turning the car in that night, after I got home, so about 10 hours ahead of schedule. There was no Hertz employee actively working the return queue at the airport, and the person working the check-in kiosk simply told me to leave the keys in it. So I did, figuring they’d check it in at some point and close out the rental contract.
Why, oh, why did Hertz take a week to realize the car was there before they checked it in? And then, they insisted that I’d had it the entire time, even though I had timestamped photos of when it was in the return queue and the condition it was in. And they hit me with an $850 charge, which included all manner of late fees, and stubbornly refused to refund any of it.
I wound up having to dispute the charge with my credit card company in order to get refunded, and I’ve been boycotting Hertz on principle since then.
exact same thing happened to my wife at an airport return..
never, ever, rent from Hertz
Yeah, Hertz is terrible, avoid at all costs. If you have to go bargain basement, Avis/budget is on the same pricing tier as Hertz, and while the customer service is absolutely terrible that cuts both ways as well- you can return cars with some pretty big dings and they will neither notice nor care.
“Hertz is a big name in the rental car business,”
With their terrible business practices, I’m surprised they’re still a big name in the rental car business.
I personally won’t do business with them after they lied to police and got customers arrested.
Why would anyone with half a brain want to do use a POS business like that?
So I’m completely unsurprised that Hertz is doing yet another terrible/unethical thing.
Fuck Hertz.
And if you use them, then you are a moron.
The problem is that many rentals are for corporate business travel and employees are typically required to rent from a preferred vendor that the employer has made a rate agreement with. Same goes for hotel stays.
Well then it’s a case of employees needing to push back and refusing to use a company that falsely has people arrested or has bogus fees that will result in them NOT being the cheapest.
And if the company has an official ethics policy, you can often use that ethics policy as justification.
I’ve done this personally a couple of times where I work in the past.
Enterprise is pretty lenient about damage in my experience. We road tripped around the ring road of Iceland. What was supposed to be a stick-shift Skoda Octavia wagon turned out to be a Passat wagon when they couldn’t find the keys to the Skoda. Fine, but we wanted that extra bit of ground clearance.
One of us backed into a boulder. Luckily, he happened to hit the rear bumper exactly where there was existing documented damage to the car. Another driver (ok, it was me) scraped up the undercarriage on an unpaved “road”. I tore up the plastic aero cladding underneath the car pretty badly.
When we returned the car they never looked at the undercarriage. They saw the damaged bumper, saw that there was already documented damage there, and ultimately did not charge us for any damages.
I guess what I’m saying is, don’t rent from Hertz and don’t buy former rental cars from Iceland.
Yeah, so, Hertz wanted to raise their rates, but knew the market would not stand for it. So, instead they figured out a Catch-22 fee. They figure most people will just pay it, mission accomplished, rates raised.