Hertz Sued After Customers Held At Gunpoint By Cops Over Allegedly Stolen Cars

Industry News / 14 Comments

The rental company is still falsely reporting its vehicles as stolen, and its customers are the ones suffering.

A group of disgruntled customers is taking legal action against Hertz, accusing the rental car company of poor inventory tracking which led to their unlawful arrest. The Wall Street Journal (WSJ) reports that the lawsuit, filed in Delaware earlier this week, relates to five clients who were wrongfully arrested while driving rented vehicles that were lawfully in their possession.

This isn't the first time an incident such as this has occurred. The company has previously been accused of having a slovenly records system, which has led to it reporting vehicles as stolen. One innocent individual even spent a night in jail as a result.

Polestar/Hertz

The quintet of customers alleges that, through its actions, Hertz acted negligently and caused emotional distress through the false arrests. Legal representation for the plaintiffs remarked that the rental company's poor fleet and inventory management are not only affecting customers but wasting the precious time of emergency services.

Since 2015, it appears that at least 320 Hertz customers have been wrongfully arrested. According to WSJ, many of these legal claims and cases were channeled into the company's bankruptcy affairs. As you may remember, the agency filed for Chapter 11 in 2020, citing the COVID-19 pandemic and the resultant economic turmoil as the reason behind the decision.

GM

The latest lawsuit seems to be the first since Hertz escaped the throes of bankruptcy. However, a spokeswoman claimed the rental car agency has also sent nearly 60 confidential settlement offers to customers "who had a negative experience with [the] company." The Hertz official also said that the company is working hard to find solutions to this issue.

"While we remain steadfast in our commitment to defend the company's interest against those that intend harm, we also want to do right by our customers," added the spokeswoman. Earlier in the year, Hertz reportedly stated that it files nearly 3,400 theft reports against customers every year.

The company's new CEO, Stephen Scherr, admitted this is an issue and has promised to rectify the situation. In past years, the entire problem was largely ignored.

Polestar/Hertz

Despite all these issues, Hertz is looking to position itself as a leader in the rental car sphere. There's a focus on electric vehicles in particular and, in 2021, the company announced it would order 100,000 examples of the Tesla Model 3. This amount could grow in the coming years.

Hertz has also ordered 65,000 units of the handsome Polestar 2 EV and recently struck a deal with General Motors, too. In the first quarter of 2023, the rental car company will receive Bolt and Bolt EUV models and is expected to introduce other electric GM vehicles from brands such as Chevrolet, Cadillac, and Buick.

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Source Credits: The Wall Street Journal

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