Hertz to pay $168 million for falsely accusing drivers of stealing automobiles

Hertz prospects who mentioned they have been wrongly accused of stealing automobiles from the rental agency will obtain about $168 million to resolve virtually all of the claims they’ve filed.

Hertz CEO Stephen Scherr earlier his 12 months blamed the error on a “glitch” within the firm’s information methods. The dad or mum firm, Hertz International Holdings Inc., mentioned right this moment that it could settle 364 pending claims associated to the erroneously filed reviews, resolving greater than 95% of them.

“As I’ve mentioned since becoming a member of Hertz earlier this 12 months, my intention is to guide an organization that places the client first. In resolving these claims, we’re holding ourselves to that goal,” Scherr mentioned in a press release.

In a single occasion, CBS Information reported in February {that a} man in Colorado spent 24 hours in jail after he was arrested for stealing a Hertz automobile in Georgia regardless that he mentioned he had by no means been to Georgia and had by no means rented from Hertz.

In different instances, the complaints induced police to tug over drivers on suspicion of driving stolen automobiles.

Hertz fired again on the time, insisting that “of the greater than 25 million rental transactions by Hertz in america per 12 months, 0.014% fall into the uncommon scenario the place autos are reported to the authorities after exhaustive makes an attempt to succeed in the client.”

Hertz filed for chapter safety in 2020, because it struggled below heavy debt and a drop in journey attributed to the Covid pandemic. The dad or mum firm operates Hertz, Greenback and Thrifty car-rental manufacturers.