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
Welcome to fresh HELL…
AI? Chat agents? HELL NO
I’ve already heard about the past arrests, etc etc etc
I will NEVER use Hertz
National all the way.
After the false arrests due to “stolen” rentals debacle, there is no way I would rent even a cell phone charger from Hertz. They know what they are doing and are screwing their customers all the way to Chapter 11.
Sixt did something similar to me, although they tried to charge me $1,500 for damage. I returned a white Malibu to the Sixt location at the Jacksonville airport. I the car for about 24 hours and nothing happened to it during that time. When I turned it in, Sixt had a human take photos of the car and then had AI software analyze it for “anomalies.” I got an email with links to photos (which expired after you viewed them once, but luckily I left some of them open on my computer) and a demand that I pay $1,500 to cover the “damage.” The crazy thing is there was no visible damage in the photos. The only thing that was noticeable was the shadow of the person taking the photos on the white panels of the vehicle. I showed the photos to several of my co-workers and no one could figure out what the heck the photos were supposed to show. I was eventually able to get a person on the phone. The rep admitted that they used AI to review the photos. She also claimed that Sixt had no other photos of the vehicle besides the “damage” ones. So they either do not bother to create a baseline like Hertz or she was lying. Luckily she did agree the photos were “inconclusive” and they withdrew the claim.
This is literally every large company’s plan, and has been for years. Make it nearly impossible to contact an actual, thinking, compassionate human being to help with a problem. Implement technology to nickel and dime customers for every single thing under the sun. Threaten them with legal-sounding terms to bully them into just paying. And hope that those customers who don’t want to pay, also don’t have the patience or time to navigate a byzantine customer support tree.
Pretty much every large company can eat shit and die, especially the ones forcing AI-everything. Capitalism has absolutely destroyed this country and made all our lives miserable.
I am not opinion either way but has anyone investigated the complaintant social account and the way they treat cars?
Aside from liking old Fiats, I love how you always manage to take the completely wrong stance on literally everything. Kinda refreshing.
Please explain. Given how everyone sucks how can you ignore these people aren’t influencers and tearing up vehicles they rent and complain when they get charged for damage they do? What is your take? Rent a car ruin it and don’t get charged?
“In the fullness of time, humanity came to realize that Skynet didn’t intend to kill them in the traditional sense, but merely bill them to death.”
Budget/Avis tried to charge me $450 for special cleaning on my rental over a week after I turned it in. Didn’t say what it was, just gave a category that included food, pets, smoking, etc. I wrote back and immediately said that since none of the above happened in my care they were going to need to be much more specific or we were gonna have a problem. Then the charge was removed with no actual explanation about what the supposed issue was. This was in Dulles and I would like to note they took the car away from me before I could take post turn-in pictures. So not sure if just that location, but sketchy AF.
Avis tried to charge me $57 for an oil change, 3 weeks after I dropped the car off, under the “damage and/or roadside assistance” caregory. They rescinded the charges when I made it abundantly clear that vehicle maintenance falls under neither category.
That whole rental experience was a mess, and just one of several rentals with them in a row that had issues.
Quick question for the attorneys on the chat – is Hertz obligated to repair the damage if they charge you for it? Many years ago I returned a car at the end of a lease. I had arraigned for them to pick it up from my driveway while I was not there. A month later they sent me a $700 bill for several damages that they itemized. I was over a barrel and couldn’t dispute it as the car had already been auctioned by the time I got the bill. A couple years later, I got notified of a class action lawsuit against the leasing company. They were charging for repairs, then not performing the repairs before auctioning off the cars. I know they lost the suit, but I never saw any money back.
I wonder if the same thing applies here.
Funny how many people here will take an insurance payment and not fix the damage? I have in my case unobtainable parts $100 a day rental.
The management at Hertz should be sent through this scanner, I’m sure it will find all sorts of damage to their heads.
I rented a car last year from Sixt. I had gone over the car with my camera phone before I checked it out and had documented every blemish I could find. On return I asked for an inspection while I was present, the guy took one cursory glance and told me I was fine.
A few weeks later I got an email claiming damage ON THE ROOF had been found and did I know anything about it. I said no and pointed out I had asked for an inspection at the time and had been told by their guy I was fine. I also pointed out the car had a lot of existing dings and dents at the time I checked it out and that at some point the rims and tires had been stolen (that tidbit was in their records with pics), maybe those thieves had caused the damage and it had been missed until now.
A few days after that I got another email: Case closed.
I have had worse trouble with Verizon call phone wanting more money for service I never received. 9 months later Verizon sold my overdue balance to a illegitimate collection agency that refuses to give me a email address to send a Verizon email that says I owe nothing
Tell them you will not give them a credit card or any form of electronic payment its a paper check or nothing. then send a certified paper copy of the Verizon statement with a letter from a lawyer saying any further communication will trigger litigation.