Published
February 17, 2026
Updated
August 4, 2026
This resolved Hertz settlement paid $168 million to 364 customers who said they were wrongly reported for vehicle theft; the settlement is closed to new claims.
In December 2022, Hertz announced it would pay $168 million to settle the claims. The settlement covered 364 people, which the company said represented more than 95% of identified false accusation cases. Hertz Global Holdings also operates Thrifty and Dollar rental car brands.
What Went Wrong?
The root cause was systemic failures in how Hertz tracked its rentals. Three main problems repeatedly surfaced in the lawsuits.First, many customers called Hertz to extend their rental period, but the extensions were not properly recorded in the company's computer systems. The system still showed the car as overdue and eventually flagged it as stolen, even though the customer was renting it legally.
Second, Hertz sometimes re-rented cars that had previously been reported as stolen without ever rescinding the original police report. New, unsuspecting customers would then be driving a vehicle that was listed as stolen in law enforcement databases. When they were pulled over for unrelated reasons — a traffic violation, a routine check — police would see the stolen vehicle flag and arrest them on the spot.
Third, stolen vehicles were sometimes accidentally associated with the wrong customer in Hertz's records. People who had nothing to do with the missing vehicle would have arrest warrants issued in their names.
The lawsuits alleged that Hertz routinely reported vehicles as stolen to police without first verifying its own records — a practice one lawsuit described as "routine and systemic mass reporting, without verification or investigation."
Status
Resolved
Settlement announced in December 2022
Settlement
$168 million
364 customers covered
Can I Claim?
No — settlement closed
No new claims are accepted
What Happened to the Customers?
The consequences for innocent customers were severe. People were arrested — some at gunpoint. They were jailed for days, weeks, and in some cases months. They were charged with felonies. They lost jobs because of pending criminal charges. They were separated from their families.In one case, a customer in Chicago got a flat tire and called Hertz to have the car towed. Months later, she was pulled over for a minor seatbelt issue and discovered there was an arrest warrant in her name. She was jailed for more than 30 days.
In another case, a customer in Florida extended her rental four times. Despite text message communications with a Hertz employee confirming her plans to return the car, it was reported stolen before the extension period ended. She was jailed for 37 days, separated from her two children, and missed her nursing school graduation.
A customer in Mississippi spent more than six months in jail after Hertz reported his car stolen — even though he had already returned the vehicle and paid in full. Hertz failed to inform prosecutors, and after missing a hearing date the man was incarcerated for months.
The Settlement
Many of the false accusation claims emerged during Hertz's bankruptcy proceedings in 2020. Hertz initially fought in bankruptcy court to keep the allegations under seal.After the cases became public, Hertz's then-new CEO Stephen Scherr acknowledged the problem and said resolving it was a priority. In December 2022, Hertz announced the $168 million settlement covering 364 identified victims. The company said it would pay the full amount by the end of 2022.
The settlement averages roughly $460,000 per person, though individual amounts varied based on the severity of each case. Some customers spent days in jail; others spent months. Some lost jobs; others lost custody of children during incarceration. The more severe the harm, the larger the individual settlement amount.
Hertz did not formally admit legal liability but publicly committed to putting customers first and preventing similar incidents.
Can You Still File a Claim?
The $168 million settlement is resolved and no longer accepting new claims. However, if you believe you were falsely accused of stealing a Hertz, Thrifty, or Dollar rental car and were not part of this settlement, you may still have the right to file your own individual lawsuit. Consult with an attorney who handles wrongful arrest, consumer fraud, or civil rights cases.What Should You Do If a Rental Car Company Falsely Accuses You?
If you are ever falsely accused of stealing a rental car, there are several steps you should take. Keep every piece of documentation — your rental agreement, extension confirmations, payment receipts, text messages or emails with the rental company, and any return receipts. Request a copy of any police report filed against you. Contact an attorney immediately, especially if you are arrested or charged. Do not assume the rental company will correct the error on its own — the Hertz cases showed that the company sometimes failed to notify prosecutors even after learning a report was false.Other Class Action Settlements You May Qualify For
While the Hertz settlement is closed, there are many active class action settlements you can file for right now. Here are some current settlements on OpenClassActions.com:• Amazon Returns Settlement — $309.5 million for customers charged restocking fees
• Target WA Privacy Settlement — $2.225 million
• Grubhub/Seamless California Delivery Fee Settlement — $10 site credit
• Wells Fargo CARES Act Mortgage Settlement — $56.85 million automatic payments
• DoorDash Chicago Settlement — up to $2,500
• Limestone Bank Overdraft Fee Settlement — automatic payments, no claim form
• Capital One Deceased Credit Reporting Settlement — $2.4 million automatic
• Chrysler 200 MultiAir/Fuel Injector Settlement — 15yr/150K mile warranty extension
Check back regularly for new settlements. Many have short claim windows and pay real money.
Sources
• NPR, "Hertz will pay $168 million to customers it falsely accused of stealing its cars," December 6, 2022• CBS News investigative reports on Hertz false theft accusations
• Hertz Global Holdings corporate statements, December 2022
• Court filings, Delaware Superior Court
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Status
Resolved
Settlement Amount
$168 million
Customers Covered
364
Announced
December 2022
Claim Process
Closed
