Class Action Alleges Hertz Files False Vehicle Theft Reports, Causing Innocent Renters to Face Arrest, Jail Time

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Hertz faces a proposed class action lawsuit that alleges the car rental company has negligently accused hundreds of innocent customers of stealing its vehicles, causing some consumers to face arrest, felony charges and jail time.

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The 30-page complaint, filed in Florida on November 3, alleges the defendants—The Hertz Corporation and subsidiaries Hertz Vehicles, LLC; Dollar Rent A Car, Inc. and Thrifty Rent-A-Car System, LLC—have failed to accurately record rental extensions in their computer systems. The case also accuses the Hertz companies of filing without proper investigation theft reports for cars validly rented to consumers, or in the companies’ possession, and renting reportedly stolen vehicles to customers.

The suit charges that Hertz’s conduct is “particularly outrageous” in light of the fact that it has known for years that its alleged negligence and false reporting of stolen vehicles have caused scores of innocent consumers to face accusations of theft, arrest, felony charges and even imprisonment.

“When police spot one of these allegedly ‘stolen’ vehicles on the road, the customer is subject to a felony traffic stop, often involving multiple officers surrounding the vehicle with guns drawn,” the case describes. “The customer is then treated like a felon and often detained for several hours.”

According to the complaint, the Hertz unit responsible for filing police reports does not have access to the records of local branches or call centers that document when a consumer has validly extended their car rental. In addition, Hertz’s central computer systems at times delete customer extension records and backdate rental due dates, the filing shares.

As a result of these crucial recording errors, individuals who “rightfully believe they have validly extended their rental” can be falsely accused of theft, the lawsuit contends.

“In most cases, Hertz does not know if the vehicle is actually stolen; it only knows it cannot find the vehicle,” the suit argues. “These ‘missing’ vehicles are often in Hertz’s possession, custody, or control, in a Hertz lot or lawfully rented to a customer.”

In addition, the case claims that though the corporation’s policies with respect to its theft reporting process include “sensible and vital safeguards against false reports,” Hertz fails to follow its own guidelines and even instructs employees to bypass them.

For example, the company’s theft reporting policy requires an investigation by a local security manager to attest to a report’s accuracy, the complaint relays. However, the filing alleges that Hertz directs the security managers to “skip the local investigation,” and the rental company’s training materials instruct employees to “ignore” this policy requirement.

“These unjustified directives result in virtually every theft report being unverified,” the lawsuit charges.

As the suit tells it, Hertz has known of the alleged false theft reporting since at least 2016. The case shares that not only has there been legal action against the company and substantial nationwide news coverage about its conduct, several airport police departments reportedly “stopped taking theft reports from Hertz” in 2016, claiming it was falsely reporting cars stolen that “later turned up on Hertz’s lots.”

Further, even when the company has “made an obvious error,” it refuses to rescind theft reports, the complaint contests, noting that it is apparently cheaper for Hertz to file police reports than fix its computer systems and follow its own policies.

“Instead of investing in better tracking systems and spending the time and money to recover vehicles and investigate whether rentals are actually stolen, Hertz is filing police reports so the police recover the vehicle at taxpayer expense,” the filing alleges. “Hertz knows that customers will almost certainly end up being arrested and prosecuted.”

The plaintiff, a South Carolina resident, rented a vehicle from Hertz in Ohio in December 2019, the lawsuit says. The woman requested an extension of the rental term and eventually returned the car, per the terms of the rental agreement, in February 2020, the suit relays.

However, unbeknownst to the plaintiff, Hertz filed a false police report in which it claimed that the vehicle had been stolen, and a warrant was issued for the woman’s arrest, the case shares.

According to the complaint, the plaintiff and her husband were pulled over in Ohio in December 2021. The officer informed the woman of the warrant out against her, placed her under arrest and put her, handcuffed, into the back of his squad car, the filing describes.

The plaintiff claims to have received felony charges for unauthorized use of a vehicle, and says she was ordered to pay Hertz $10,000 in restitution and put under control of the state probation department for one year.

“Hertz’s scheme seeks to utilize law enforcement as its own private repossession service, subjecting its customers, including [the plaintiff] and Class Members, to significant financial and emotional harm,” the suit contends. “Hertz is using the police and criminal justice system for an improper purpose, not to bring actual criminals to justice.”

The lawsuit looks to represent anyone in the United States who was falsely detained, arrested, prosecuted or jailed in connection with Hertz’s false reporting of stolen vehicles.

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