The Hertz company will pay out $168 million to hundreds of customers who were falsely accused of stealing their rental cars.
The lawsuit centered around 364 people who were accused of theft due to errors in the company's rental records.
Some were arrested and even jailed over the false charges, some faced felony charges and others were stopped by police for driving cars they legally rented from the company. Some say the arrest warrant even cost them employment opportunities.
Hertz, which recently emerged from bankruptcy proceedings, says the money will be paid out before the end of the year and resolves more than 95% of its pending theft reporting claims.
"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," CEO Stephen Scherr said in a statement. "Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience."
Court filings claim Hertz falsely reported its cars were stolen for years, as part of its regular business practice that burdened customers with "criminal records that impact their livelihoods, and separating them from their family and loved ones."
According to Inc., court filings claim the practice functioned as a cost-saving measure.
"In some cases, the company simply misplaces a car or a rental contract and doesn't know where the car is," said the outlet. "Rather than upgrade its malfunctioning inventory systems or conduct its own investigation when cars are unaccounted for, Hertz simply reports these cars as stolen, the filing claims."
According to Hertz, “"the vast majority" of cases involved renters who were weeks or months late returning vehicles and stopped communication. The company also said stolen vehicles are reported to the authorities in rare circumstances where they cannot reach customers.
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