Hertz AI Sparks Rental Rage: Customers Charged Hundreds for 'Dents and Damage That Weren't There'

Hertz, a leading car rental company, is facing strong offline and online resentment from the customers who were wrongly charged substantial amounts for repairs of their vehicles.

This comes as numerous customers report receiving bills for hundreds of dollars, which they assert are for minor vehicle damage detected by the company's new AI inspection scanning systems.

The automated artificial intelligence system, designed to assess vehicle condition, is reportedly flagging non-existent damage.

Customer Outcry Over AI Damage Claims

Car hirers are now advocating for harsh measures, including boycott on social media platforms, such as Reddit and Facebook. They allege the rental giant is using artificial intelligence to spot insignificant vehicle damage and impose hefty charges, all while making it challenging to connect with a human representative.

'I'm just not comfortable with the new technology that can flag dirt or something that can be rubbed off as damage,' a customer posted on Reddit.

Another Reddit user highlighted a dual issue: 'The flagging is half of the problem. The other problem is Hertz using AI to file the claim. What about traditional smaller-than-the-size-of-a-golf-ball dents or bill-size scratches? I can't even speak to a live agent.'

Specific Incidents Spark Controversy

This week, Hertz informed DailyMail.com that it had billed a driver $440 (£320.79) for a one-inch mark found on a wheel. This type of blemish, which often occurs when someone scrapes a kerb while parallel parking, was detected by the scanning system.

The total charge comprised $250 (£182.27) for the actual damage, a $125 (£91.13) processing fee, and an additional $65 (£47.39) for administrative costs. Another driver alleged they were presented with a $195 (£142.17) charge for a minute mark when handing back a Toyota Corolla.

The Rollout of New AI Technology

These driver experiences are part of a broader technology initiative at Hertz. The Car rental agency recently teamed up with UVeye, a startup specialising in high-speed automated vehicle inspection systems.

Renters now pass their vehicles through these scanners on two occasions: once upon collection and again upon return.

Drivers will receive a record of any pre-existing damage identified by the scanners, as the company confirmed to DailyMail.com. Hertz aims to implement these scanning systems across 100 rental locations by the end of the year.

Company Response and Customer Trust Concerns

In April, the rental firm informed DailyMail.com it intended to deploy the technology for improved vehicle safety, rather than to bill customers for minor cosmetic damage.

The company stated its policy remains unchanged, despite the instances of $440 (£320.60) and $195 (£142.09) charges. Hertz maintains that the majority of drivers who've used the UVeye scanners haven't incurred any fees.

A company spokesperson noted that over 97% of vehicles scanned with this technology show no billable damage, indicating that most rentals are incident-free.

They added that Hertz is utilising this system to address vehicle damage directly, a long-standing issue in the rental industry, aiming to enhance the customer experience by ensuring fair charges and increasing transparency, accuracy, and speed in the process.

Corporate Claims and Customer Doubt

The company also assured DailyMail.com that these systems would guarantee customers always receive safe vehicles. UVeye's scanners are capable of assessing underbody damage and tyre tread degradation with greater precision than human inspectors. However, independent analysts are concerned that this technological solution isn't generating much human trust.

'A line is crossed when AI applications become overly aggressive and prioritise efficiency over customer fairness and satisfaction,' David Linthicum, an AI analyst, previously told DailyMail.com. 'Customers value fairness and human interaction.'

While remaining silent on the specific incidents, Hertz highlighted its loss damage waiver, typically priced between $20 (£14.57) and $30 (£21.86) per day, as a means to prevent unexpected charges. However, as the company faces a public outcry, the drivers who have incurred damage fees are also stating they will seek out alternative rental providers.