What happened with Hertz falsely accusing customers of stealing rental cars?

Over a span of years, Hertz falsely reported more than 360 innocent customers to police for stealing rental cars they had either already returned, properly extended, or were still legally renting. These false reports led to arrests, felony charges, jail time, and lasting damage to customers' lives and reputations. Hertz paid $168 million in December 2022 to settle the claims, covering 364 people — more than 95% of identified false accusation cases.

Why did Hertz falsely accuse customers of stealing cars?

The false accusations stemmed from errors in Hertz's computer systems. In many cases, customers had called to extend their rental, but the extension was not properly recorded. In other cases, Hertz re-rented cars that had previously been reported stolen without rescinding the original police report, causing new renters to be pulled over by police. Sometimes, stolen cars were accidentally linked to the wrong customer entirely. The lawsuits alleged that Hertz routinely reported vehicles as stolen without verifying its own records first.

What happened to Hertz customers who were falsely accused?

Innocent Hertz customers were arrested — some at gunpoint — jailed for days, weeks, or even months, charged with felonies, separated from their families, and lost jobs and career opportunities because of pending criminal charges. One customer spent more than six months in jail after Hertz reported his car stolen even though he had returned it and paid in full. Another was jailed for 37 days and missed her nursing school graduation.

Did Hertz admit wrongdoing in the settlement?

Hertz did not formally admit legal liability as part of the settlement. However, CEO Stephen Scherr, who joined the company in 2022, publicly acknowledged the problem and said rectifying the situation was a priority. He stated that his intention was to lead a company that puts the customer first and to do right by those who were harmed.

Does the Hertz settlement cover Thrifty and Dollar rental cars?

Hertz Global Holdings operates Hertz, Thrifty, and Dollar rental car brands. The false theft accusation claims involved the broader Hertz corporate system, so customers of any Hertz-owned brand who were falsely accused could have been affected.

What should I do if I was falsely accused of stealing a rental car?

If you were falsely accused of stealing a rental car, keep all documentation — rental agreements, extension confirmations, payment receipts, text messages with the rental company, arrest records, and any communication from police or prosecutors. Contact an attorney who handles wrongful arrest, consumer fraud, or civil rights cases. You may have grounds for an individual lawsuit even if a class settlement has already been reached.

Are there other rental car or consumer class action settlements I can file for?

Yes. OpenClassActions.com tracks hundreds of active class action settlements across consumer protection, data breach, privacy, defective products, and financial services cases. Many settlements have open claim deadlines and offer cash payments with no proof required. Check the site regularly for new settlements you may qualify for.

Hertz Paid $168 Million After Falsely Accusing 364 Customers of Stealing Rental Cars

Q: How much did Hertz pay in the false theft accusation settlement?

Hertz paid $168 million in total to settle false theft accusation claims from 364 customers. That averages roughly $460,000 per person, though individual amounts varied based on the severity of each case. The settlement was announced in December 2022 and paid by the end of that year.

Q: Can I still file a claim against Hertz for a false theft accusation?

The $168 million settlement from December 2022 covered 364 identified claimants and is no longer open for new claims. However, if you believe you were falsely accused of stealing a Hertz, Thrifty, or Dollar rental car and were not part of the settlement, you may still have the right to file your own individual lawsuit. You should consult with an attorney who handles wrongful arrest or consumer fraud cases.

By Steve Levine

Hertz False Theft Accusations $168 Million Settlement

Published: February 17, 2026

Settlement Status: Resolved — $168 million paid in December 2022 to 364 customers

For years, Hertz falsely reported hundreds of innocent customers to police for stealing rental cars. People who had returned their vehicles, properly extended their rentals, or were still legally renting were arrested, jailed, charged with felonies, and had their lives turned upside down — all because of errors in Hertz's own computer systems.

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."

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.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

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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Hertz False Theft Accusations Summary
Settlement Amount	$168 million (paid December 2022)
Customers Affected	364 people falsely accused (>95% of identified cases)
Average Per Person	~$460,000 (varied by severity)
Company	Hertz Global Holdings (Hertz, Thrifty, Dollar)
What Happened	Computer errors led to false stolen vehicle reports → arrests, jail, felony charges
Root Causes	Unrecorded rental extensions, un-rescinded police reports, wrong-customer associations
Status	Resolved — no longer accepting new claims
Can You Still Sue?	Possibly — if you were falsely accused and not part of the settlement, consult an attorney