Hertz to pay $168 million to settle false car theft claims

U.S.

(NewsNation) —  Hertz will pay nearly $170 million to customers who say they were falsely accused of stealing cars.

On Monday, the rental company announced that it will settle 364 pending false arrest claims, “bringing resolution to more than 95%” of the disputes.

Hertz said it “expects to recover a meaningful portion of the settlement amount from its insurance carriers.”

“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,” said Stephen Scherr, CEO of Hertz.

What was not in the news release, was any mention of what Hertz is doing to rectify the problem. A Hertz spokesperson directed NewsNation to their Form 8-K, which was submitted to the Securities and Exchange Commission.

The document reads: “It (Hertz) has taken significant steps to modernize and update those policies.” NewsNation asked for clarification on this statement, and we have yet to hear back.

Timeline prior to Hertz settlement:

  • 2020: Hertz filed for bankruptcy. False arrest cases were pushed to bankruptcy court.
  • November 2021: NewsNation reported that hundreds of customers were falsely arrested, some even falsely imprisoned.
  • March 2022: Senators Elizabeth Warren and Richard Blumenthal called for investigations into the false arrest allegations.
  • April 2022: Hertz CEO Stephen Scherr, who took over the role in February, said that he was working to fix a glitch in the company’s systems that led to the incidents.
  • June 2022: A judge ruled that hundreds of customers could take their cases to stat courts and pursue outside of bankruptcy court.
  • July 2022: Hertz made offers to some customers with claims.

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