Hertz paying $168M to settle theft, false arrest lawsuits

Hertz is resolving its false arrest and theft lawsuits by paying $168 million. The settlement will cover all 364 claims related to the false reporting of rental cars being stolen and wrongful arrests resulting from the allegations of theft.

It was said that some of the claimants even ended up being imprisoned after arrest. There is also one case that involves dozens of complaints over alleged systemic flaws in the car rental company’s reporting of thefts, claims of customers not paying, non-recording of rental extensions, failure to correct its false reports to police, and failure to track its vehicle inventory.

As per CNN Business, some people who sued also said they were held at gunpoint by police and spent days in jail before the erroneous reports were put right. Moreover, there is one case where a customer said a case against him took two years to be sorted out.

Hertz confirmed the settlement on Monday, Dec. 5, and said that part of the payout would be reimbursed from its insurers. The company added that it does not expect the decision on the claims to have a significant effect on its capital allocation.

The Estero, Florida-based car rental firm’s spokesperson, Jonathan Stern, said via email that Hertz has taken steps to redo and update its policies, especially those related to making sure that its customers are treated properly. However, he did not specify those policy changes that the company put in place.

Hertz’s chief executive officer, Stephen Scherr, further said on Monday that the settlement would clear up 95% of the false arrest claims against the company. The settlements are set to be paid by the end of the year.

"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," the Hertz CEO said in a press release. "While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year.”

He added, “Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience."